LSE:DNLM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet 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


Market Performance


7 Day Return

-5.8%

DNLM

5.7%

GB Specialty Retail

1.1%

GB Market


1 Year Return

33.3%

DNLM

9.6%

GB Specialty Retail

2.7%

GB Market

Return vs Industry: DNLM exceeded the UK Specialty Retail industry which returned 9.6% over the past year.

Return vs Market: DNLM exceeded the UK Market which returned 2.7% over the past year.


Shareholder returns

DNLMIndustryMarket
7 Day-5.8%5.7%1.1%
30 Day-9.3%2.0%-1.7%
90 Day-11.4%5.8%-2.7%
1 Year44.2%33.3%13.5%9.6%7.8%2.7%
3 Year19.1%2.0%1.5%-8.8%19.3%4.7%
5 Year32.2%-3.2%11.0%-5.4%38.0%8.1%

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

6.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DNLM (£7.84) is trading below our estimate of fair value (£8.37)

Significantly Undervalued: 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 (15.6x) compared to the Specialty Retail industry average (14.4x).

PE vs Market: DNLM is good value based on its PE Ratio (15.6x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: DNLM is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: DNLM is overvalued based on its PB Ratio (8.5x) compared to the GB Specialty Retail industry average (1.1x).


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNLM's forecast earnings growth (8.1% per year) is above the savings rate (1.2%).

Earnings vs Market: DNLM's earnings (8.1% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: DNLM's revenue (4% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: DNLM's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DNLM's Return on Equity is forecast to be very high in 3 years time (80.1%).


Next Steps

Past Performance

How has Dunelm Group performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DNLM's earnings have declined by -3.6% per year over the past 5 years.

Accelerating Growth: DNLM's earnings growth over the past year (38.2%) exceeds its 5-year average (-3.6% per year).

Earnings vs Industry: DNLM earnings growth over the past year (38.2%) exceeded the Specialty Retail industry -19.3%.


Return on Equity

High ROE: DNLM's Return on Equity (54.5%) is considered outstanding.


Return on Assets

ROA vs Industry: DNLM has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: DNLM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dunelm Group's financial position?


Financial Position Analysis

Short Term Liabilities: DNLM's short term assets (£207.4M) exceeds its short term liabilities (£149.8M)

Long Term Liabilities: DNLM's short term assets (207.4M) exceeds its long term liabilities (81.5M)


Debt to Equity History and Analysis

Debt Level: DNLM's debt to equity ratio (23.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if DNLM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DNLM's debt is well covered by operating cash flow (392.8%).

Interest Coverage: DNLM's interest payments on its debt are well covered by EBIT (81.7x coverage).


Balance Sheet

Inventory Level: DNLM has a high level of physical assets or inventory.

Debt Coverage by Assets: DNLM's debt is covered by short term assets (assets are 4.681710x debt).


Next Steps

Dividend

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

3.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Dunelm Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.6%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DNLM's dividend (3.57%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: DNLM's dividend (3.57%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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 (55.8%), 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 (57.8% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Nick Wilkinson 0

1.7yrs

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

Compensation vs. Market: Nick has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

1.7yrs

Average Tenure

52yo

Average Age

Experienced Management: DNLM's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

58yo

Average Age

Experienced Board: DNLM's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£8,15106 Sep 19
William Reeve
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000
Max PriceUK£8.15
BuyUK£96,25018 Jul 19
Laura Carr
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares11,000
Max PriceUK£8.75
BuyUK£228,98518 Jul 19
Nick Wilkinson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares26,021
Max PriceUK£8.80
BuyUK£35,16312 Jul 19
Ian Bull
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000
Max PriceUK£8.79
BuyUK£138,13003 Dec 18
Laura Carr
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares25,000
Max PriceUK£5.53
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

Ownership Breakdown


Management Team

  • Nick Wilkinson

    CEO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£308.00k
  • Dawn Durrant (52yo)

    Company Secretary

    • Tenure: 7.9yrs
  • Will Adderley (46yo)

    Deputy Chairman

    • Tenure: 3.8yrs
    • Compensation: UK£21.00k
  • Bill Adderley (70yo)

    Founder & Life President

    • Tenure: 0yrs
    • Compensation: UK£3.00k
  • Laura Carr

    CFO & Executive Director

    • Tenure: 0.9yrs
  • Chris Shaw

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Andy Harrison (62yo)

    Independent Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: UK£208.00k
  • Nick Wilkinson

    CEO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£308.00k
  • Paula Vennells (60yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Marion Sears (56yo)

    Non-Independent & Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: UK£50.00k
  • Ian Bull (58yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Liz Doherty (61yo)

    Senior Independent Director

    • Tenure: 1.9yrs
    • Compensation: UK£64.00k
  • William Reeve (46yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£56.00k
  • Will Adderley (46yo)

    Deputy Chairman

    • Tenure: 3.8yrs
    • Compensation: UK£21.00k
  • Peter Ruis

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£50.00k
  • Laura Carr

    CFO & Executive Director

    • Tenure: 0.9yrs

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£1.584b
  • 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; bean bags; bed frames, mattresse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:53
End of Day Share Price2019/10/14 00:00
Earnings2019/06/29
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.