DFS Furniture (DFS) AI Stock Analysis

• Market Cap: £369.10M
• Dividend Yield: 2.84%
• Average Volume (3M): 140.72K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.32
• Revenue Growth: 4.38%
• EPS Growth: N/A
• Country: UK
• Employees: 4,722
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.05
• Shares Outstanding: 234,144,420
• 10 Day Avg. Volume: 137,438
• 30 Day Avg. Volume: 140,715
• PEG Ratio: -0.03
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 2.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £217.00
• Price Target Upside: 37.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: 169.00p ▲(7.30% Upside)

DFS Furniture's overall stock score is driven by its solid financial performance and positive technical indicators. The company's strong cash flow and efficient cost management are significant strengths, although high leverage and low profitability present challenges. The stock's moderate valuation and positive market momentum further support its potential, despite the lack of dividend yield and earnings call data.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates robust financial health, enabling DFS to invest in growth opportunities and manage debt effectively.

Efficient Cost Management

High gross margins reflect efficient cost management, which supports profitability and allows for competitive pricing strategies in the market.

Revenue Growth

Consistent revenue growth suggests a stable market position and effective sales strategies, contributing to long-term business sustainability.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting flexibility and increasing vulnerability to economic downturns.

Low Profitability

Low profitability margins indicate challenges in converting revenue into profit, which may affect long-term growth and shareholder returns.

Reliance on Debt Financing

Dependence on debt financing can strain financial resources and impact the company's ability to invest in future growth initiatives.

DFS Furniture Business Overview & Revenue Model

Company Description

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails upholstered furniture in the United Kingdom and Europe. The company retails sofas under the DFS and Sofology brands; and modern furniture, lighting, and home accessories under the brand name. It also engages in the contract logistics business. It operates a network of 126 DFS showrooms, 50 Sofology stores, and 36 Dwell showrooms. The company also sells its products through websites. DFS Furniture plc was founded in 1969 and is headquartered in Doncaster, the United Kingdom.

How the Company Makes Money

DFS generates revenue primarily through the sale of its upholstered furniture products, including sofas, chairs, and accessories. The company operates a multi-channel sales model, including physical retail stores across the UK and an online platform, which allows customers to browse and purchase products conveniently. Key revenue streams include direct sales from these stores, online sales, and finance options provided to customers for larger purchases. DFS also benefits from partnerships with various fabric manufacturers and designers, enabling them to offer exclusive ranges that enhance their product offerings. Additionally, DFS has a strong focus on promotional events and sales campaigns, which drive consumer traffic and boost sales during peak periods. The company's ability to manage production efficiently and maintain a strong supply chain also contributes to its profitability.

DFS Furniture Financial Statement Overview

Summary

DFS Furniture demonstrates a solid financial position with strong cash flow generation and efficient cost management. However, the company faces challenges with high leverage and relatively low profitability. Continued focus on improving net profit margins and managing debt levels will be crucial for sustaining growth and financial stability.

Income Statement

DFS Furniture has shown a moderate revenue growth rate of 4.44% in the latest year, recovering from a decline in the previous period. The gross profit margin is strong at 56.46%, indicating efficient cost management. However, the net profit margin is relatively low at 2.35%, suggesting limited profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 1.87, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is moderate at 9.60%, showing decent returns for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

DFS Furniture's free cash flow growth rate is strong at 15.08%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.55, showing a healthy conversion of income to cash. The free cash flow to net income ratio is high at 0.88, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.03B	987.10M	1.09B	1.15B	1.06B
Gross Profit	541.80M	581.70M	550.80M	500.10M	517.70M	513.50M
EBITDA	128.00M	154.30M	131.10M	156.00M	175.20M	218.70M
Net Income	24.20M	24.20M	-4.40M	26.20M	31.40M	88.70M
Balance Sheet
Total Assets	983.60M	983.60M	1.05B	1.06B	1.12B	1.10B
Cash, Cash Equivalents and Short-Term Investments	13.90M	13.90M	26.80M	26.70M	17.30M	22.70M
Total Debt	472.10M	472.10M	591.70M	577.20M	551.20M	493.90M
Total Liabilities	731.40M	731.40M	817.50M	822.10M	851.00M	820.30M
Stockholders Equity	252.20M	252.20M	229.00M	237.10M	268.90M	284.50M
Cash Flow
Free Cash Flow	165.10M	160.30M	94.30M	76.50M	81.70M	243.70M
Operating Cash Flow	174.70M	181.20M	115.90M	111.40M	129.10M	292.90M
Investing Cash Flow	-20.70M	-20.30M	-19.80M	-33.60M	-45.60M	-47.40M
Financing Cash Flow	-170.70M	-185.10M	-98.60M	-56.10M	-84.50M	-301.80M

DFS Furniture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DFS, the sentiment is Positive. The current price of 157.5 is above the 20-day moving average (MA) of 154.05, above the 50-day MA of 153.21, and above the 200-day MA of 149.75, indicating a bullish trend. The MACD of 2.91 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 48.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DFS.

DFS Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTP	75 Outperform	£51.29M	7.45	14.20%	10.95%	-7.42%	-42.84%
CFX	74 Outperform	£52.13M	8.17	19.42%	0.58%	2.64%	23.89%
LIKE	70 Neutral	£68.54M	50.93	3.37%	1.41%	9.26%	31.71%
DFS	64 Neutral	£369.10M	15.03	10.06%	2.84%	4.38%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HEAD	46 Neutral	£42.54M	―	-19.28%	6.45%	-11.65%	-273.57%
SDG	45 Neutral	£34.26M	6.71	-19.63%	3.16%	-7.59%	-285.33%

DFS Furniture Corporate Events

DFS Furniture Exceeds Profit Guidance Amid Strong Trading Performance

DFS Furniture plc reported a robust trading performance for the fiscal year ending June 29, 2025, with profits expected to exceed the top end of guidance, driven by strong trading and cost control. The company achieved a 10% year-on-year increase in order intake, outperforming a subdued market, and significantly reduced its net bank debt, enhancing its financial position. Both DFS and Sofology brands showed strong growth, and the company improved its gross margins through disciplined cost management. Despite challenging macroeconomic conditions, DFS is well-positioned to deliver attractive returns for shareholders as the market recovers.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Announces Change in Major Holdings

DFS Furniture Plc has announced a change in its major holdings, as Perpetual Limited, based in Sydney, Australia, has adjusted its voting rights in the company. The notification indicates that Perpetual Limited now holds 9.973% of the voting rights, a slight decrease from its previous position of 10.038%. This adjustment in voting rights may influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.