LSE:DNLM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: DNLM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

DNLM

-0.9%

GB Specialty Retail

0.1%

GB Market


1 Year Return

-17.5%

DNLM

-31.7%

GB Specialty Retail

-23.6%

GB Market

Return vs Industry: DNLM exceeded the UK Specialty Retail industry which returned -35% over the past year.

Return vs Market: DNLM exceeded the UK Market which returned -25% over the past year.


Shareholder returns

DNLMIndustryMarket
7 Day1.0%-0.9%0.1%
30 Day-31.2%-29.3%-15.5%
90 Day-37.6%-43.3%-27.0%
1 Year-12.3%-17.5%-29.4%-31.7%-19.8%-23.6%
3 Year32.4%14.6%-35.4%-41.6%-13.5%-24.3%
5 Year1.6%-19.6%-37.2%-47.1%-1.6%-23.5%

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 compared to its fair value and its price relative to the market?

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNLM (£7.1) is trading below our estimate of fair value (£8.81)

Significantly Below Fair Value: DNLM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNLM is poor value based on its PE Ratio (12.7x) compared to the Specialty Retail industry average (7.5x).

PE vs Market: DNLM is poor value based on its PE Ratio (12.7x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: DNLM is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: DNLM is overvalued based on its PB Ratio (9.9x) compared to the GB Specialty Retail industry average (0.6x).


Next Steps

Future Growth

How is Dunelm Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNLM's forecast earnings growth (5.1% per year) is above the savings rate (0.5%).

Earnings vs Market: DNLM's earnings (5.1% per year) are forecast to grow slower than the UK market (15.6% per year).

High Growth Earnings: DNLM's earnings are forecast to grow, but not significantly.

Revenue vs Market: DNLM's revenue (5.5% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: DNLM's revenue (5.5% 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 (69.2%).


Next Steps

Past Performance

How has Dunelm Group performed over the past 5 years?

-0.9%

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%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: DNLM's earnings have declined by -0.9% per year over the past 5 years.

Accelerating Growth: DNLM's earnings growth over the past year (34.6%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: DNLM earnings growth over the past year (34.6%) exceeded the Specialty Retail industry 1.5%.


Return on Equity

High ROE: DNLM's Return on Equity (78.4%) is considered outstanding.


Next Steps

Financial Health

How is Dunelm Group's financial position?


Financial Position Analysis

Short Term Liabilities: DNLM's short term assets (£170.3M) do not cover its short term liabilities (£207.0M).

Long Term Liabilities: DNLM's short term assets (£170.3M) do not cover its long term liabilities (£312.8M).


Debt to Equity History and Analysis

Debt Level: DNLM's debt to equity ratio (46.9%) is considered high.

Reducing Debt: DNLM's debt to equity ratio has increased from 0.9% to 46.9% over the past 5 years.

Debt Coverage: DNLM's debt is well covered by operating cash flow (258.8%).

Interest Coverage: DNLM's interest payments on its debt are well covered by EBIT (39.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNLM's dividend (3.95%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: DNLM's dividend (3.95%) is low compared to the top 25% of dividend payers in the UK market (7.36%).


Stability and Growth of Payments

Stable Dividend: DNLM's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), DNLM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DNLM's dividends in 3 years are forecast to be covered by earnings (64.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Nick Wilkinson

2.17s

Tenure

UK£1,365,000

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 ($USD1.69M) is about average for companies of similar size in the UK market ($USD1.89M).

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nick Wilkinson
CEO & Executive Director2.17yrsUK£1.37m0.056% £811.6k
Will Adderley
Deputy Chairman4.25yrsUK£21.00k26.9% £388.2m
Laura Carr
CFO & Executive Director1.42yrsUK£974.22k0.018% £256.9k
William Adderley
Founder & Life Presidentno dataUK£3.00k5.93% £85.6m
Chris Shaw
Chief Information Officerno datano datano data
Leonie Foster
Chief Customer & Digital Officer0.50yrno datano data
Dawn Durrant
Company Secretary8.42yrsno datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: DNLM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nick Wilkinson
CEO & Executive Director2.17yrsUK£1.37m0.056% £811.6k
Will Adderley
Deputy Chairman4.25yrsUK£21.00k26.9% £388.2m
Laura Carr
CFO & Executive Director1.42yrsUK£974.22k0.018% £256.9k
Andrew Harrison
Independent Chairman of the Board4.75yrsUK£212.00k0.21% £3.0m
Paula Vennells
Independent Non-Executive Director0.58yrno datano data
Marion Sears
Non-Independent & Non-Executive Director15.75yrsUK£51.00k0.052% £749.1k
Ian Bull
Independent Non-Executive Director0.75yrno data0.0020% £28.6k
William Reeve
Independent Non-Executive Director4.75yrsUK£61.00k0.0089% £128.4k
Peter Ruis
Independent Non-Executive Director4.58yrsUK£51.00kno data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: DNLM's board of directors are considered experienced (4.3 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 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£1.443b
  • Shares outstanding: 202.26m
  • 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; bean bags; bed frames, mattresses, divan beds and bases, and headboards, as well as kids beds; and bedding products, such as bed linens, duvets, pillows, protectors, and baby and kids beddings. It also provides curtains, poles and tracks, and curtain accessories; blinds; rugs, runners, and door mats; mirrors, cushions and throws, pictures and frames, wallpapers, and accessories; lighting products, including ceiling and wall lights, lamp shades, floor and table lamps, outdoor lights, and lighting accessories; and kitchen products, such as cooking, dining, utility, electrical, and storage products, as well as furniture for pets. In addition, the company offers towels and bathmats, bathroom accessories, and bathroom furniture; kids accessories and toys, baby toys, and nursery furniture and products, as well as travel, safety, and wellbeing products; and garden furniture and storage, garden décor and ornament, and travel products. It operates 170 superstores and 2 high street stores, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is based in Syston, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 00:06
End of Day Share Price2020/04/06 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


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.