Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Dunelm Group plc is a leading UK home-furnishing retailer specializing in affordable, high-quality soft furnishings and homewares. Founded in 1979 by Bill and Jean Adderley on a Leicester market stall selling curtains and bedding, the company has evolved into a major player with superstores, high street outlets, and multichannel platforms including online and telephone ordering. Its diverse product range encompasses textiles like bedding, curtains, cushions, quilts, and pillows, alongside kitchenware, dining items, and furniture, often featuring exclusive designs under premium brands such as Dorma. Dunelm Group plc operates one reportable segment focused on retailing homewares across the UK and Ireland, serving customers with a broad price spectrum supported by strong customer service. Headquartered at Watermead Business Park in Syston, Leicestershire, with approximately 11,862 employees, the company emphasizes innovation in physical and digital shopping experiences, including Click & Collect and rapid online growth. As a key entity in the consumer cyclical sector's specialty retail industry, Dunelm Group plc plays a significant role in the competitive home furnishings market, continually expanding its store network and product offerings.
£8.01
+£0.06 (+0.69%)
EOD Jul 3, 2026
12.54% operating margin is respectable but not wide. ROIC at 34.22%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.8%, steady but not accelerating.
Even for strong businesses, today's 10x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
10.4x earnings, 7.7x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£1.77B
▲ +3.8% YoY
Net Income (TTM)
£156M
▲ +3.4% YoY
Op. Margin
12.54%
ROIC
34.22%
▲ +0.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£211M
▲ +5.8% YoY
Op. Cash Flow (TTM)
£212M
▲ +4.0% YoY
Net Debt
£348M
Cash & Equiv.
£30M
3Y CAGR: +3.8%
3Y CAGR: -2.5%
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At a P/E of 10.4 and a price-to-free-cash-flow of 7.7, Dunelm Group (DNLM.XLON) trades below a two-stage DCF intrinsic value of about £19.48 per share, so at £8.01 the stock looks undervalued (143.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Dunelm Group scores 57/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 9.8%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £19.48 per share for DNLM.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £14.61. At today's £8.01, that puts the stock about 143.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Dunelm Group scores 57 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 12.5% operating margin and a 34.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Dunelm Group pays a regular dividend of about £0.79 per share per year (typically in quarterly installments), a yield of roughly 9.8% at the current price. That is a payout ratio of about 102.0% of earnings, so the dividend is stretched at this level. Dunelm Group has grown the dividend at roughly 60.0% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For DNLM.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. DNLM.XLON currently trades below its estimated intrinsic value and scores 57/100 on quality (mixed). It also yields about 9.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.