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DFS Furniture
(LSE:DFS)
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Rating:61Neutral
Price Target:
151.00 p
▼(-8.48% Downside)
Action:Reiterated
Date:09/25/26
The score is driven primarily by improving financial performance (margin recovery and consistently positive free cash flow), tempered by ongoing leverage risk and flat recent revenue. Valuation is a clear positive with a low P/E and the provided dividend yield. Technicals are a headwind as the stock is below key moving averages and momentum readings are subdued.
Positive Factors
Margin Recovery
The recovery from a 2024 loss to positive net and operating margins shows improved earnings resilience. If maintained, stronger profitability can support reinvestment, absorb demand volatility, and improve the economics of DFS’s established retail and delivery network over coming quarters.
Negative Factors
Flat Revenue Trend
Limited recent revenue growth suggests DFS is not currently expanding demand or market share consistently. A flat top line can constrain operating leverage and make margin improvement harder to sustain, particularly when customers remain sensitive to large-ticket furniture spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery
The recovery from a 2024 loss to positive net and operating margins shows improved earnings resilience. If maintained, stronger profitability can support reinvestment, absorb demand volatility, and improve the economics of DFS’s established retail and delivery network over coming quarters.
Read all positive factors
DFS Furniture (DFS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£339.69M
Dividend Yield0.68%
Average Volume (3M)515.87K
Price to Earnings (P/E)9.8
Beta (1Y)0.96
Revenue Growth2.64%
EPS Growth43.03%
CountryUK
Employees4,702
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.15
Shares Outstanding236,000,000
10 Day Avg. Volume431,400
30 Day Avg. Volume515,872
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.10
Price to Sales (P/S)0.30
P/FCF Ratio2.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£200.00Price Target Upside21.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.15
Revenue Forecast (FY)£1.08B
DFS Furniture Business Overview & Revenue Model
Company Description
DFS Furniture plc, headquartered in Doncaster, United Kingdom, and founded in 1969, is a prominent retailer and manufacturer specializing in upholstered furniture. The company manages the entire lifecycle of its products, from design and productio...
How the Company Makes Money
DFS makes money primarily by selling furniture to consumers through its stores and e-commerce channels. The core revenue stream is retail sales of upholstered seating (notably sofas and armchairs), with additional revenue from complementary furnit...
DFS Furniture Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.03B | 987.10M | 1.09B | 1.15B |
| Gross Profit | 526.30M | 581.70M | 550.80M | 500.10M | 517.70M |
| EBITDA | 163.10M | 154.30M | 131.10M | 156.00M | 175.20M |
| Net Income | 34.90M | 24.20M | -4.40M | 26.20M | 31.40M |
Balance Sheet | |||||
| Total Assets | 940.50M | 983.60M | 1.05B | 1.06B | 1.12B |
| Cash, Cash Equivalents and Short-Term Investments | 10.90M | 13.90M | 26.80M | 26.70M | 17.30M |
| Total Debt | 392.20M | 472.10M | 591.70M | 577.20M | 551.20M |
| Total Liabilities | 652.10M | 731.40M | 817.50M | 822.10M | 851.00M |
| Stockholders Equity | 288.40M | 252.20M | 229.00M | 237.10M | 268.90M |
Cash Flow | |||||
| Free Cash Flow | 140.70M | 160.30M | 94.30M | 76.50M | 81.70M |
| Operating Cash Flow | 157.70M | 181.20M | 115.90M | 111.40M | 129.10M |
| Investing Cash Flow | -27.00M | -20.30M | -19.80M | -33.60M | -45.60M |
| Financing Cash Flow | -130.70M | -185.10M | -98.60M | -56.10M | -84.50M |
DFS Furniture Technical Analysis
Positive
165.00
Price Trends
149.58
Negative
141.57
Positive
150.23
Negative
Market Momentum
-0.14
Negative
51.85
Neutral
48.40
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 165 is above the 20-day moving average (MA) of 143.42, above the 50-day MA of 149.58, and above the 200-day MA of 150.23, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.40 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £4.14B | 15.66 | 22.80% | 2.85% | 4.15% | 5.60% | |
63 Neutral | £67.73M | 9.68 | 22.35% | 0.46% | 5.39% | 29.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £339.69M | 9.81 | 12.31% | 0.68% | 2.64% | 43.03% | |
61 Neutral | £154.61M | 73.28 | 3.23% | 1.04% | 11.51% | 9.26% | |
57 Neutral | £54.92M | 25.50 | 3.09% | 1.97% | -0.90% | ― | |
41 Neutral | £8.43M | -0.10 | -61.90% | 5.49% | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:DFS
DFS Furniture
147.00
-11.81
-7.43%
GB:CFX
Colefax
1,355.00
469.58
53.03%
GB:HEAD
Headlam
10.50
-42.50
-80.19%
GB:HWDN
Howden Joinery
767.50
-27.14
-3.42%
GB:SDG
Sanderson Design Group PLC
76.00
29.60
63.80%
GB:LIKE
Likewise Group Plc
42.50
15.42
56.93%
DFS Furniture Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
DFS Furniture lifts profits, cuts debt and restores dividend as market share hits record high
Positive
Sep 24, 2026
DFS Furniture reported a strong improvement in full-year FY26 performance, with revenue up 2.6%, gross margin reaching a strategic target of 58.1% and underlying profit before tax rising 48.7% to £44.9m. Free cash flow of £40.3m cut net ...
Business Operations and StrategyFinancial Disclosures
DFS Furniture lifts profits and cuts debt despite softer market
Positive
Jul 16, 2026
DFS Furniture expects underlying profit before tax excluding brand amortisation to be around £45m for FY26, up about £15m year on year and within its upgraded guidance range, supported by 2.7% revenue growth, gross margin expansion and t...
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.