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DNLM

Dunelm Group LSE:DNLM Stock Report

Last Price

UK£8.31

Market Cap

UK£1.7b

7D

2.1%

1Y

-38.1%

Updated

13 Aug, 2022

Data

Company Financials +
DNLM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

DNLM Stock Overview

Dunelm Group plc retails homewares in the United Kingdom.

Dunelm Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dunelm Group
Historical stock prices
Current Share PriceUK£8.31
52 Week HighUK£15.58
52 Week LowUK£7.52
Beta1.12
1 Month Change7.23%
3 Month Change-6.42%
1 Year Change-38.12%
3 Year Change-1.77%
5 Year Change32.11%
Change since IPO349.19%

Recent News & Updates

Shareholder Returns

DNLMGB Specialty RetailGB Market
7D2.1%0.5%0.7%
1Y-38.1%-22.4%-7.8%

Return vs Industry: DNLM underperformed the UK Specialty Retail industry which returned -22.4% over the past year.

Return vs Market: DNLM underperformed the UK Market which returned -7.8% over the past year.

Price Volatility

Is DNLM's price volatile compared to industry and market?
DNLM volatility
DNLM Average Weekly Movement5.4%
Specialty Retail Industry Average Movement6.3%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: DNLM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DNLM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197911,000Nick Wilkinsonhttps://www.dunelm.com

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture for bedroom, living room, dining room, and office; sofas and chairs; bean bags; bed frames, mattresses, storage beds, divan bases, and headboards, as well as kids beds; and bedding products, such as bed linens, duvets, pillows, mattress toppers, protectors, and baby and kids beddings. It also provides curtains, and poles and tracks; blinds; rugs, runners, and door mats; mirrors, pictures and frames, clocks, wallpapers and DIY, cushions and throws, and accessories; lighting products, including ceiling and wall lights, lamp shades, floor and table lamps, and outdoor lights; kitchen products, such as cooking, dining, utility, and electrical products; and storage products for home, clothes, and kitchen, as well as travel and luggage products.

Dunelm Group Fundamentals Summary

How do Dunelm Group's earnings and revenue compare to its market cap?
DNLM fundamental statistics
Market CapUK£1.68b
Earnings (TTM)UK£152.10m
Revenue (TTM)UK£1.41b

11.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DNLM income statement (TTM)
RevenueUK£1.41b
Cost of RevenueUK£677.70m
Gross ProfitUK£734.70m
Other ExpensesUK£582.60m
EarningsUK£152.10m

Last Reported Earnings

Dec 25, 2021

Next Earnings Date

Sep 14, 2022

Earnings per share (EPS)0.75
Gross Margin52.02%
Net Profit Margin10.77%
Debt/Equity Ratio0%

How did DNLM perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DNLM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DNLM?

Other financial metrics that can be useful for relative valuation.

DNLM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA9x
PEG Ratio-1.3x

Price to Earnings Ratio vs Peers

How does DNLM's PE Ratio compare to its peers?

DNLM PE Ratio vs Peers
The above table shows the PE ratio for DNLM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.8x
PETS at Home Group
13.9x2.3%UK£1.7b
SCS ScS Group
26.6x7.4%UK£51.9m
WOSG Watches of Switzerland Group
20.7x13.8%UK£2.1b
FRAS Frasers Group
14.1x10.0%UK£4.1b
DNLM Dunelm Group
11x-8.6%UK£1.7b

Price-To-Earnings vs Peers: DNLM is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (18.8x).


Price to Earnings Ratio vs Industry

How does DNLM's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

Price-To-Earnings vs Industry: DNLM is expensive based on its Price-To-Earnings Ratio (11x) compared to the UK Specialty Retail industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is DNLM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DNLM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio11.5x

Price-To-Earnings vs Fair Ratio: DNLM is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (11.5x).


Share Price vs Fair Value

What is the Fair Price of DNLM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DNLM (£8.31) is trading below our estimate of fair value (£15.38)

Significantly Below Fair Value: DNLM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Dunelm Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNLM's earnings are forecast to decline over the next 3 years (-8.6% per year).

Earnings vs Market: DNLM's earnings are forecast to decline over the next 3 years (-8.6% per year).

High Growth Earnings: DNLM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DNLM's revenue (3.9% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: DNLM's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNLM's Return on Equity is forecast to be very high in 3 years time (101.5%).


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Past Performance

How has Dunelm Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DNLM has high quality earnings.

Growing Profit Margin: DNLM's current net profit margins (10.8%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: DNLM's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: DNLM's earnings growth over the past year (38.1%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: DNLM earnings growth over the past year (38.1%) underperformed the Specialty Retail industry 46.2%.


Return on Equity

High ROE: DNLM's Return on Equity (70.8%) is considered outstanding.


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Financial Health

How is Dunelm Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DNLM's short term assets (£274.6M) exceed its short term liabilities (£266.1M).

Long Term Liabilities: DNLM's short term assets (£274.6M) exceed its long term liabilities (£248.1M).


Debt to Equity History and Analysis

Debt Level: DNLM is debt free.

Reducing Debt: DNLM has no debt compared to 5 years ago when its debt to equity ratio was 130.5%.

Debt Coverage: DNLM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DNLM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Dunelm Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DNLM's dividend (5.54%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: DNLM's dividend (5.54%) is in the top 25% of dividend payers in the UK market (5.11%)


Stability and Growth of Payments

Stable Dividend: DNLM's dividend payments have been volatile in the past 10 years.

Growing Dividend: DNLM's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.3%), DNLM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.2%), DNLM's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Nick Wilkinson

4.5yrs

Tenure

UK£4,042,000

Compensation

Mr. Nick Wilkinson has been Chief Executive of Dunelm Group plc since February 1, 2018 and serves as Director since February 2018 and has extensive retail experience across a number of consumer brands. He...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD4.90M) is above average for companies of similar size in the UK market ($USD1.98M).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DNLM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: DNLM's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DNLM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dunelm Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Dunelm Group plc
  • Ticker: DNLM
  • Exchange: LSE
  • Founded: 1979
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Implied Market Cap: UK£1.677b
  • Shares outstanding: 201.77m
  • Website: https://www.dunelm.com

Number of Employees


Location

  • Dunelm Group plc
  • Watermead Business Park
  • Syston
  • Leicestershire
  • LE7 1AD
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/25
Annual Earnings2021/06/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.