LSE:DNLM

Stock Analysis Report

Executive Summary

Dunelm Group plc engages in the retail of homewares in the United Kingdom.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.

Risks

  • Dunelm Group's last earnings update was 188 days ago.

Similar Companies

Share Price & News

How has Dunelm Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

LSE:DNLM

-2.3%

GB Specialty Retail

-1.1%

GB Market


1 Year Return

72.3%

LSE:DNLM

-13.3%

GB Specialty Retail

-5.7%

GB Market

DNLM outperformed the Specialty Retail industry which returned -11.1% over the past year.

DNLM outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

DNLMIndustryMarket
7 Day-3.1%-2.3%-1.1%
30 Day-4.5%-5.3%-4.4%
90 Day0.8%-4.7%-2.7%
1 Year79.6%72.3%-10.4%-13.3%-1.3%-5.7%
3 Year8.7%-3.3%-15.7%-24.0%17.6%3.9%
5 Year27.9%-2.7%-13.1%-24.6%26.8%0.1%

Price Volatility Vs. Market

How volatile is Dunelm Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dunelm Group undervalued based on future cash flows and its price relative to the stock market?

0.899%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Dunelm Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Dunelm Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Dunelm Group is overvalued based on earnings compared to the GB Specialty Retail industry average.

Dunelm Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Dunelm Group is poor value based on expected growth next year.


Price Based on Value of Assets

Dunelm Group is overvalued based on assets compared to the GB Specialty Retail industry average.


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Dunelm Group's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Dunelm Group's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Dunelm Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Dunelm Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Dunelm Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Dunelm Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Dunelm Group performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Dunelm Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Dunelm Group's 1-year earnings growth exceeds its 5-year average (13.8% vs -4.4%)

Dunelm Group's earnings growth has exceeded the GB Specialty Retail industry average in the past year (13.8% vs -16.8%).


Return on Equity

Dunelm Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Dunelm Group used its assets more efficiently than the GB Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Dunelm Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dunelm Group's financial position?


Financial Position Analysis

Dunelm Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Dunelm Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Dunelm Group's level of debt (60.8%) compared to net worth is high (greater than 40%).

Unable to establish if Dunelm Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (154.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 53.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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

3.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Dunelm Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Dunelm Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Dunelm Group's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Nick Wilkinson 0

1.5yrs

Tenure

UK£308,000

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

Nick's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Nick to compare compensation growth.


Management Age and Tenure

1.5yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Dunelm Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

58yo

Average Age

The tenure for the Dunelm Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Dunelm Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£228,98518 Jul 19
Nick Wilkinson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares26,021
Max PriceUK£8.80
BuyUK£96,25018 Jul 19
Laura Carr
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares11,000
Max PriceUK£8.75
BuyUK£35,16312 Jul 19
Ian Bull
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,000
Max PriceUK£8.79
BuyUK£13,76203 Dec 18
William Reeve
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,500
Max PriceUK£5.50
BuyUK£138,13003 Dec 18
Laura Carr
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares25,000
Max PriceUK£5.53

Ownership Breakdown


Management Team

  • Nick Wilkinson

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: UK£308.00k
  • Dawn Durrant (52yo)

    Company Secretary

    • Tenure: 7.8yrs
  • David Stead (61yo)

    Executive Director

    • Tenure: 15.9yrs
  • Will Adderley (46yo)

    Deputy Chairman

    • Tenure: 3.6yrs
    • Compensation: UK£21.00k
  • Bill Adderley (70yo)

    Founder & Life President

    • Tenure: 0.0yrs
    • Compensation: UK£3.00k
  • Laura Carr

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Chris Shaw

    Chief Information Officer

    • Tenure: 0.0yrs

Board Members

  • Andy Harrison (62yo)

    Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: UK£208.00k
  • Nick Wilkinson

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: UK£308.00k
  • Marion Sears (56yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: UK£50.00k
  • Ian Bull (58yo)

    Non-Executive Director

    • Tenure: 0.1yrs
  • Liz Doherty (61yo)

    Senior Independent Director

    • Tenure: 1.8yrs
    • Compensation: UK£64.00k
  • William Reeve (46yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£56.00k
  • David Stead (61yo)

    Executive Director

    • Tenure: 15.9yrs
  • Will Adderley (46yo)

    Deputy Chairman

    • Tenure: 3.6yrs
    • Compensation: UK£21.00k
  • Peter Ruis

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£50.00k

Company Information

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


Key Information

  • Name: Dunelm Group plc
  • Ticker: DNLM
  • Exchange: LSE
  • Founded: 1979
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: UK£1.749b
  • Shares outstanding: 201.98m
  • Website: https://www.dunelm.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNLMLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2006
DNLMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2006
DFQDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
DNLM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2014

Biography

Dunelm Group plc engages in the retail of homewares in the United Kingdom. The company offers furniture for bedroom, living room, dining room, and office; sofas and chairs; bed frames, mattresses, beds, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:57
End of Day Share Price2019/08/20 00:00
Earnings2018/12/29
Annual Earnings2018/06/30


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.