# Dunelm Group plc (DNLM.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Specialty Retail. Price 776p, market value 1.6 billionp.

## Valuation
- **P/E (trailing): 10.5×** (5-yr avg 1536.5×, 3-yr avg 1488.3×). Dunelm Group plc trades at 10.5× trailing earnings, well below its own five-year average of 1536.5×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 9.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.43**. A PEG of 2.43 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 9.6×**. The shares trade at 9.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 3.8×**. Enterprise value is 3.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 32.4%** (5-yr avg 0.1%). Free cash flow equals 32.4% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.5%**. The inverse of the P/E: 9.5% of the price is earned each year.

## Profitability
- **Gross margin: 51.2%**. Dunelm Group plc keeps 51.2% of revenue after the direct cost of what it sells.
- **Operating margin: 12.0%**. 12.0% of revenue is left after running the business.
- **Net margin: 8.8%**. 8.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 131.6%**. A 131.6% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 67.4%**. Return on all capital, debt included, is 67.4%: comfortably above what that capital costs.
- **Return on assets: 40.7%**. Each dollar of assets produces 40.7% of profit.

## Growth
- **Revenue growth (1 yr): 3.8%** (3-yr 3.8%/yr, 5-yr 10.9%/yr). Revenue grew 3.8% over the last year, against 10.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 4.1%** (3-yr -2.9%/yr, 5-yr 12.4%/yr). Earnings per share rose 4.1%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): -0.7%/yr**. Free cash flow has compounded at -0.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 3.18**. Debt is 3.18 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 18.1×**. Operating profit covers interest 18.1× over, a safe margin.
- **Current ratio: 1.04** (quick 0.25). Current assets cover the next year's liabilities 1.04 times.
- **Altman Z-score: 5.34**. A Z-score of 5.34 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.10%** (0p per share, trailing). Dunelm Group plc yields 5.10%, an income-level yield.
- **Payout ratio: 102%** (63% of free cash flow). The dividend exceeds earnings (102% payout), though free cash flow still covers it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 6.0%**. Dividends plus net buybacks return 6.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover Dunelm Group plc; the consensus is buy, with an average price target of 1084p (+40% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -28.2%** (YTD -22.2%, 3-mo 15.6%). The shares are down 28.2% over twelve months including dividends.
- **From 52-week high: -36.1%** (9.7% above the low). Trading 36% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 0.90** (volatility 33%). Beta of 0.90 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DNLM.L · Page: https://foliofundamentals.com/stocks/dnlm.l

Not investment advice.