Education
About Us
Working with TipRanks
Follow Us
Dunelm Group plc (DNLMY)
OTHER OTC:DNLMY
Top Page
Dunelm Group
(OTC:DNLMY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$16.50
▲(10.22% Upside)
Dunelm Group's overall stock score is driven by strong financial performance and a positive earnings call, highlighting growth in sales and digital channels. The valuation is attractive with a solid dividend yield. However, technical indicators suggest a lack of strong momentum, and increasing debt levels pose a risk.
Dunelm Group (DNLMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.01B
Dividend Yield6.08%
Average Volume (3M)0.00
Price to Earnings (P/E)15.0
Beta (1Y)0.70
Revenue Growth6.66%
EPS Growth6.21%
CountryUS
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding201,313,770
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio5.62
Price to Book (P/B)19.72
Price to Sales (P/S)1.32
P/FCF Ratio10.62
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit4.03
Enterprise Value/Ebitda14.89
Forecast
1Y Price Target
$16.50Price Target Upside10.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Dunelm Group Business Overview & Revenue Model
Company DescriptionDunelm Group plc retails homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and chairs; bedding products comprising bed linen, dorma, baby and kid's bedding, and duvets, pillows and protectors; curtains and rugs; and venetian, roller, roman, vertical, and made to measure blinds. It also offers range of home decor products, such as mirrors, clocks, ornaments, pictures and frames, candle and home fragrance, flower and plants, vases, kid accessories, cushions, bean bags, and letterbox flowers, as well as housewarming, engagement, anniversary, and wedding gifts; lighting products, including ceiling and wall lights, table and desk lamps, floor lamps, and pendants and lamp shades; and paint, wallpaper, DIY and upcycling, and haberdashery products. In addition, the company provides kitchen and utility products comprising cooking, dining, electrical, utility, and pet products; towel and bathmats, and bathroom accessories, as well as furniture and decor products; storage products, such as travel and luggage, home, clothes, and kitchen storage; kids bedroom, nursery, and accessories products; outdoor products, which include garden furniture and decoration, and entreating and dining products; and trends christmas products and winter essentials. It operates through a network of 177 stores and 2 distribution centers, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is headquartered in Syston, the United Kingdom.
How the Company Makes MoneyDunelm generates revenue primarily through the sale of home furnishings and accessories, with key revenue streams coming from both in-store sales and e-commerce transactions. The company's extensive product range includes exclusive brands, which allow for higher margins. Seasonal promotions and sales events also contribute to sales volume. Additionally, Dunelm benefits from strategic partnerships with suppliers and manufacturers, ensuring a reliable supply chain while maintaining quality and cost-effectiveness. The company's loyalty program and customer-centric approach help drive repeat business, further enhancing its revenue potential.
Dunelm Group Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Dunelm, with significant growth in sales, market share, and digital channels. Despite some challenges with costs and environmental impact, the company demonstrates strong financial performance and strategic expansion efforts.Q4-2025 Updates
Positive Updates
Sales and Market Share Growth
Sales increased by 3.8% to GBP 1.8 million, with a notable increase in market share to 7.9%, up 20 basis points from the previous year.
Strong Financial Performance
Profit before tax grew by 2.7% to GBP 211 million, and operating cash flow increased by 10% year-on-year.
Digital Channel Growth
Digital sales participation rose by 3 percentage points to make up 40% of total sales, with Click & Collect sales growing by around 30%.
Dividend Increase
An increased total ordinary dividend for the year was announced at 44.5p per share, up 2.3% year-on-year.
Expansion and Acquisitions
First store opened in London and acquisitions made in Ireland. A new in-house production capability for made-to-measure products was established in the Midlands.
Negative Updates
Challenging Cost Environment
Operating costs increased due to inflationary pressures, particularly driven by labor cost inflation and the National Living Wage.
Scope 3 Carbon Reduction Challenges
Progress on Scope 3 carbon reduction has been challenging, with more work needed to measure and reduce both carbon and water consumption across the supply chain.
Lack of Sustained Consumer Recovery
While there was stronger growth in the second half of the year, the company is not yet calling out a consumer recovery.
Company Guidance
The call provided detailed guidance on Dunelm's financial performance and strategic outlook for the fiscal year ending in June 2025. Sales increased by 3.8% to GBP 1.8 million, with a strong gross margin of 52.4%, up 60 basis points year-on-year, and a profit before tax of GBP 211 million, reflecting a 2.7% growth. The company declared a total ordinary dividend of 44.5p per share, alongside a special dividend of 35p, culminating in a total distribution of 79.5p per share. Dunelm's digital sales now constitute 40% of total sales, with Click & Collect sales growing by 30%. The company aims to maintain a stable PBT margin, despite inflationary pressures, by achieving efficiencies and investing in growth initiatives, including the opening of 5 to 10 new superstores and further store refits. Operating cash flow increased by 10%, and the company ended the year with net debt of GBP 102 million, maintaining a net debt-to-EBITDA ratio of 0.3x. Looking ahead, Dunelm anticipates continued strategic progress with a focus on elevating product offerings, enhancing customer experiences across channels, and driving operational efficiencies.Dunelm Group Financial Statement Overview
Summary
Dunelm Group demonstrates a strong financial position with consistent revenue growth and profitability. The company maintains effective cash flow management, although there are concerns with high leverage and declining equity. Overall, the company's financials are solid but warrant attention to the balance sheet's leverage and equity trends.Income Statement
The income statement shows a robust performance with consistent revenue growth, highlighted by a recent 4.1% increase from 2023 to 2024. Gross and net profit margins are strong at 51.8% and 8.9%, respectively, indicating effective cost management. However, slight declines in net income and EBITDA margins suggest some pressure on profitability.75
Positive
Balance Sheet
The balance sheet reflects stable financial health with a debt-to-equity ratio of 2.37, which is a bit high but manageable within the industry. The equity ratio stands at 20.2%, indicating a moderate level of leverage. However, declining stockholders' equity over recent years points to potential risk in capital structure.60
Neutral
Cash Flow
Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.54, suggesting strong cash generation relative to income. Free cash flow growth has been negative recently, but the overall free cash flow remains substantial. The company maintains a solid free cash flow to net income ratio, indicating effective cash management.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.77B | 1.77B | 1.71B | 1.64B | 1.58B | 1.34B |
| Gross Profit | 928.30M | 928.30M | 883.30M | 820.90M | 809.40M | 688.90M |
| EBITDA | 251.20M | 251.20M | 239.70M | 224.10M | 297.60M | 241.40M |
| Net Income | 156.30M | 156.30M | 151.20M | 151.90M | 171.20M | 128.90M |
Balance Sheet | ||||||
| Total Assets | 741.50M | 741.50M | 682.00M | 696.80M | 737.90M | 766.70M |
| Cash, Cash Equivalents and Short-Term Investments | 30.00M | 30.00M | 23.40M | 46.30M | 30.20M | 128.60M |
| Total Debt | 377.70M | 377.70M | 326.60M | 334.10M | 330.90M | 293.30M |
| Total Liabilities | 622.70M | 622.70M | 544.10M | 559.30M | 559.60M | 485.50M |
| Stockholders Equity | 118.80M | 118.80M | 137.90M | 137.50M | 178.30M | 281.20M |
Cash Flow | ||||||
| Free Cash Flow | 220.70M | 220.70M | 199.90M | 218.80M | 227.80M | 168.50M |
| Operating Cash Flow | 255.90M | 255.90M | 232.30M | 240.60M | 251.80M | 184.20M |
| Investing Cash Flow | -65.90M | -65.90M | -38.30M | -20.70M | -41.60M | -15.60M |
| Financing Cash Flow | -183.00M | -183.00M | -217.30M | -204.40M | -309.70M | -127.60M |
Dunelm Group Technical Analysis
Negative
14.97
Price Trends
15.43
Negative
15.67
Negative
14.17
Positive
Market Momentum
-0.08
Negative
47.86
Neutral
47.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNLMY, the sentiment is Negative. The current price of 14.97 is above the 20-day moving average (MA) of 14.91, below the 50-day MA of 15.43, and above the 200-day MA of 14.17, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 47.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNLMY.
Dunelm Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.51B | 9.88 | 18.42% | 0.97% | -2.20% | -17.95% | |
75 Outperform | $22.58B | 20.37 | 51.75% | 1.37% | 3.28% | 9.29% | |
71 Outperform | $3.01B | 14.98 | 119.92% | 6.08% | 6.66% | 6.21% | |
63 Neutral | $5.36B | 7.73 | -52.83% | 3.02% | -0.18% | -18.95% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $3.27B | 32.41 | -38.18% | ― | 9.56% | 205.41% | |
44 Neutral | $286.29M | ― | -54.45% | ― | -7.96% | -3078.36% |
* Consumer Cyclical Sector Average
DNLMY
Dunelm Group
14.97
0.48
3.31%
FLWS
1-800 Flowers
4.50
-3.81
-45.85%
BBWI
Bath & Body Works
26.50
-3.29
-11.04%
WSM
Williams-Sonoma
185.36
47.69
34.64%
RH
RH
174.27
-172.60
-49.76%
ASO
Academy Sports and Outdoors
51.54
-2.60
-4.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.