Dunelm Group plc
Dunelm Group plc Fundamental Analysis
Dunelm Group plc (DNLMY) shows moderate financial fundamentals with a PE ratio of 13.62, profit margin of 8.29%, and ROE of 1.06%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 3.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DNLMY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDNLMY demonstrates superior asset utilization.
Valuation Score
ExcellentDNLMY trades at attractive valuation levels.
Growth Score
WeakDNLMY faces weak or negative growth trends.
Financial Health Score
WeakDNLMY carries high financial risk with limited liquidity.
Profitability Score
ModerateDNLMY maintains healthy but balanced margins.
Key Financial Metrics
Is DNLMY Expensive or Cheap?
P/E Ratio
DNLMY trades at 13.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DNLMY's PEG of -4.71 indicates potential undervaluation.
Price to Book
The market values Dunelm Group plc at 12.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.81 times EBITDA. This is generally considered low.
How Well Does DNLMY Make Money?
Net Profit Margin
For every $100 in sales, Dunelm Group plc keeps $8.29 as profit after all expenses.
Operating Margin
Core operations generate 11.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.06 in profit for every $100 of shareholder equity.
ROA
Dunelm Group plc generates $19.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dunelm Group plc produces operating cash flow of $241.60M, showing steady but balanced cash generation.
Free Cash Flow
Dunelm Group plc generates strong free cash flow of $202.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.00 in free cash annually.
FCF Yield
DNLMY converts 9.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.06
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.52
vs 25 benchmark
How DNLMY Stacks Against Its Sector Peers
| Metric | DNLMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.62 | 25.25 | Better (Cheaper) |
| ROE | 105.51% | 1170.00% | Weak |
| Net Margin | 8.29% | 742.00% | Weak |
| Debt/Equity | 1.76 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.83 | 9.19 | Weak Liquidity |
| ROA | 19.12% | -6467.00% (disorted) | Strong |
DNLMY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dunelm Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
76.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
4.67%
Industry Style: Cyclical, Growth, Discretionary
Growing