Added to YB: 2026-09-16
Pitch date: 2026-09-13
DNLM.L [bullish]
Dunelm Group plc
+2.67%
current return
Author Info
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Company Info
Dunelm Group plc engages in the retail of homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and armchairs; bedding products comprising bed linen, dorma, baby and kid’s bedding, duvets, pillows, and protectors; curtains; rugs; and venetian, roller, roman, vertical, and made to measure blinds.
Market Cap
GBP 1.5B
Pitch Price
GBP 7.50
Price Target
12.50 (+67%)
Dividend
9.40%
EV/EBITDA
6.06
P/E
9.77
EV/Sales
1.03
Sector
Specialty Retail
Category
value
Dunelm Stock Analysis: A 30% Return-on-Capital Retailer Is About to Spend More to Grow Faster
DNLM.L (monitor): Dunelm combines UK homewares leadership, 90% brand awareness, differentiated private-label products and £145-155M of normalized owner earnings with a strategy targeting roughly 30% ROCE. At 1,050-1,250p, preserving high capital returns and modest share gains could support 8-10% annual returns. The key question is whether ten annual store openings, digital expansion and £125M of incremental three-year investment can accelerate growth without repeating FY26’s 3.1% sales growth and flat profit before tax.
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