# Dunelm Group (DNLM.LSE)

Canonical: https://gigainvestors.com/s/DNLM.LSE

Analysis as of: 2026-10-16T07:40:16.093Z. Financial observations: FY2004–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: GBX 864.50 per share; close as of 2026-10-15.

Estimated value: low GBX 983.75 per share, central GBX 1,223.58 per share, high GBX 1,428.98 per share. Buy at or below the central value GBX 1,223.58 per share. Valuation as of 2026-10-16T07:40:16.093Z; scenarios are not confidence intervals.

Expected annual return: 12.9% at the stated quote. About 12.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.10×

- FY2019: 0.12×

- FY2020: 0.11×

- FY2021: 0.12×

- FY2022: 0.14×

- FY2023: 0.12×

- FY2024: 0.12×

- FY2025: 0.13×

- FY2026: 0.12×

### moat: pass

- ROIC, median of available years: 35.4%

- ROIC, second-lowest year: 30.5%

- Typical minus recent gross margin: -4.0 pp

- Typical gross margin (annual median): 48.4%

- Recent gross margin (lower of latest and 3-year median): 52.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 29.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 38.1%

- FY2018: 31.9%

- FY2019: 48.4%

- FY2020: 21.4%

- FY2021: 30.5%

- FY2022: 36.6%

- FY2023: 36.9%

- FY2024: 35.6%

- FY2025: 35.3%

- FY2026: 32.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 778M

- Net income, five-year total: GBP 786M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -3.3 pp

- Working capital / revenue, final three-year average: 8.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.04×

- FY2024: 0.99×

- FY2025: 0.98×

- FY2026: 0.94×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.1% vs 35.3%

- Per-share earnings: 0.36 to 0.77 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: GBP 368M

- Cumulative retained earnings: GBP 36M

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.9%

- Per-share value change: GBP 0.41

- Per-share value, starting three-year median: GBP 0.36

- Per-share value, ending three-year median: GBP 0.77

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 0.8%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 24M

- Cumulative net income, 10 years: GBP 1.3B

- ROIC, first three-year median: 38.1%

- ROIC, last three-year median: 35.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.36

- FY2018: GBP 0.36

- FY2019: GBP 0.50

- FY2020: GBP 0.43

- FY2021: GBP 0.63

- FY2022: GBP 0.84

- FY2023: GBP 0.75

- FY2024: GBP 0.74

- FY2025: GBP 0.77

- FY2026: GBP 0.77

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -15.2%

- Receivables to sales index (DSRI): 2.18×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.74×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.5%

- FY2018: -5.9%

- FY2019: -17.4%

- FY2020: -21.8%

- FY2021: -7.2%

- FY2022: -10.9%

- FY2023: -12.7%

- FY2024: -11.9%

- FY2025: -13.4%

- FY2026: -15.2%

## Holders

## Price story

Down 37% since Dec 2021 · sales +3.1%

Story as of 2026-10-16T10:00:11.344Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.6% a year for ten years

### Sales · FY2025–2026

sales +3.1%; source https://filings.xbrl.org/213800WCOWEI3T5DUV19/2025-06-28/ESEF/GB/0/213800WCOWEI3T5DUV19-2025-06-28/reports/213800WCOWEI3T5DUV19-2025-06-28-T01.xhtml; observed 2025-10-14.

- FY2017: GBP 956M 

- FY2018: GBP 1.1B 

- FY2019: GBP 1.1B 

- FY2020: GBP 1.1B 

- FY2021: GBP 1.3B 

- FY2022: GBP 1.6B 

- FY2023: GBP 1.6B 

- FY2024: GBP 1.7B 

- FY2025: GBP 1.8B 

- FY2026: GBP 1.8B 

### Gross margin · FY2026

gross margin 52.5%; source https://filings.xbrl.org/213800WCOWEI3T5DUV19/2025-06-28/ESEF/GB/0/213800WCOWEI3T5DUV19-2025-06-28/reports/213800WCOWEI3T5DUV19-2025-06-28-T01.xhtml; observed 2025-10-14.

- FY2017: 48.9% 

- FY2018: 48.0% 

- FY2019: 49.6% 

- FY2020: 42.9% 

- FY2021: 45.8% 

- FY2022: 46.2% 

- FY2023: 45.3% 

- FY2024: 51.8% 

- FY2025: 52.4% 

- FY2026: 52.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are GBP 1.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: revenue 1825500000; grossProfit 959000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DNLM.LSE: Dunelm Group plc, together with its subsidiaries, engages in the retail of homewares in the United Kingdom and Ireland. The company offers furniture and beds products, such as bedroom, living room, dining room, and other furniture, as well as sofas and armchairs; and bedding products comprising bed linen, duvets, pillows, protectors, dorma, and baby and kids bedding products. It also provides home decors, including wall art and decor, flowers and plants, ornaments, vases, mirrors, photo and picture frames, decorative trays and bowls, candles and home fragrance, clocks, fireplace accessories, curtains, rugs, cushions, throws, bean bags, housewarming gifts, engagement and wedding gifts, anniversary gifts, personalized gifts, and gift cards. In addition, the company offers roller, roman, venetian, vertical, shutters, Perfect Fit, cordless, kitchen, bathroom, children, and door blinds; ceiling lights, table and bedside lamps, lamp shades, floor lamps, wall lights, rechargeable lighting, bathroom lighting, string lights, outdoor lighting, LED lighting, chandeliers, lamp bases, and tripod lights; and light bulbs, pendant flex cables, electrical and wiring accessories, and light switches. Further, it provides christmas and autumn products; cooking, dining, electricals, utilities, and pet products; bath products; decorating and DIY products; storage products; and kids products. Additionally, the company offers specialist services, such as made-to-measure curtains and Pausa cafes. The company sells its products through stores and online store. The company was founded in 1979 and is based in Syston, the United Kingdom.

### Why customers stay

Margins ranged from 51.8% to 52.5% during 2024–26; it earns 35.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2024: grossProfit / revenue = 51.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2025: grossProfit / revenue = 52.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: grossProfit / revenue = 52.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); 10-year return on capital observations [[2017,0.38057158890492226],[2018,0.3186431205851616],[2019,0.48367885755953627],[2020,0.21422666631306944],[2021,0.304832851119807],[2022,0.3661450076129782],[2023,0.369021726597093],[2024,0.3559632387562562],[2025,0.3525152016821923],[2026,0.3249879193383514]]; median 0.35423922021922427. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 46% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800WCOWEI3T5DUV19/2025-06-28/ESEF/GB/0/213800WCOWEI3T5DUV19-2025-06-28/reports/213800WCOWEI3T5DUV19-2025-06-28-T01.xhtml (filed 2025-10-14); Gross margin observations: [[2021,0.4575662325999102],[2022,0.4618059946882509],[2023,0.45264827922870393]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 15.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2017: growth capex 15217176.324732795; upkeep 31382823.675267205; owner earnings 71017176.3247328. Growth capex / owner earnings = 0.21427458978586827.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2018: growth capex 600000; upkeep 33500000; owner earnings 73300000. Growth capex / owner earnings = 0.008185538881309686.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2019: growth capex 0; upkeep 12000000; owner earnings 120700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2020: growth capex 0; upkeep 24900000; owner earnings 78220000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2021: growth capex 0; upkeep 15700000; owner earnings 132040000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2022: growth capex 0; upkeep 24000000; owner earnings 170680000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2023: growth capex 0; upkeep 21800000; owner earnings 157560000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2024: growth capex 0; upkeep 32400000; owner earnings 149480000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2025: growth capex 0; upkeep 35200000; owner earnings 153800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: growth capex 0; upkeep 42700000; owner earnings 146500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); Dividend observations: [[2017,51600000],[2018,53400000],[2019,54600000],[2020,106000000],[2021,24300000],[2022,282100000],[2023,163300000],[2024,157600000],[2025,159400000],[2026,141000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: cash repurchases 15600000 GBP.

### Are managers owners

Insiders own 38.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DNLM.LSE SharesStats.PercentInsiders = 38.646 percentage points; cache date 2026-10-16.

### What could break it

The external valuation for the property purchased in 2024 was performed by a professionally qualified, independent valuer.

- Source: https://filings.xbrl.org/213800WCOWEI3T5DUV19/2025-06-28/ESEF/GB/0/213800WCOWEI3T5DUV19-2025-06-28/reports/213800WCOWEI3T5DUV19-2025-06-28-T01.xhtml (filed 2025-10-14); As at 28 June 2025, all amortisation and depreciation charges have been included within operating costs in the Consolidated Income Statement. The external valuation for the property purchased in 2024 was performed by a professionally qualified, independent valuer. The valuation conforms to International Valuation Standards and UK 

### What the price says

The price assumes cash profits shrink 0.6% yearly over ten years; actual growth was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); Ten-year compound average after fade. Initial solved rate -0.0419699056152414. Price 864.5; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5053426565839954 → FY2026 0.7266973218847502. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 756.50 per share

- 2016-11: GBX 739.00 per share

- 2016-12: GBX 804.50 per share

- 2017-01: GBX 680.00 per share

- 2017-02: GBX 646.00 per share

- 2017-03: GBX 637.50 per share

- 2017-04: GBX 606.50 per share

- 2017-05: GBX 626.00 per share

- 2017-06: GBX 601.50 per share

- 2017-07: GBX 602.00 per share

- 2017-08: GBX 584.50 per share

- 2017-09: GBX 707.50 per share

- 2017-10: GBX 732.00 per share

- 2017-11: GBX 702.50 per share

- 2017-12: GBX 692.50 per share

- 2018-01: GBX 640.00 per share

- 2018-02: GBX 580.00 per share

- 2018-03: GBX 527.00 per share

- 2018-04: GBX 564.00 per share

- 2018-05: GBX 539.00 per share

- 2018-06: GBX 505.00 per share

- 2018-07: GBX 524.50 per share

- 2018-08: GBX 520.00 per share

- 2018-09: GBX 547.00 per share

- 2018-10: GBX 596.50 per share

- 2018-11: GBX 542.00 per share

- 2018-12: GBX 541.00 per share

- 2019-01: GBX 722.50 per share

- 2019-02: GBX 837.00 per share

- 2019-03: GBX 869.50 per share

- 2019-04: GBX 855.00 per share

- 2019-05: GBX 890.00 per share

- 2019-06: GBX 920.00 per share

- 2019-07: GBX 924.50 per share

- 2019-08: GBX 876.00 per share

- 2019-09: GBX 838.00 per share

- 2019-10: GBX 789.50 per share

- 2019-11: GBX 852.50 per share

- 2019-12: GBX 1,156.00 per share

- 2020-01: GBX 1,159.00 per share

- 2020-02: GBX 1,088.00 per share

- 2020-03: GBX 706.50 per share

- 2020-04: GBX 920.50 per share

- 2020-05: GBX 1,066.00 per share

- 2020-06: GBX 1,190.00 per share

- 2020-07: GBX 1,230.00 per share

- 2020-08: GBX 1,429.00 per share

- 2020-09: GBX 1,397.00 per share

- 2020-10: GBX 1,303.00 per share

- 2020-11: GBX 1,220.00 per share

- 2020-12: GBX 1,213.00 per share

- 2021-01: GBX 1,156.00 per share

- 2021-02: GBX 1,257.00 per share

- 2021-03: GBX 1,299.00 per share

- 2021-04: GBX 1,474.00 per share

- 2021-05: GBX 1,468.00 per share

- 2021-06: GBX 1,419.00 per share

- 2021-07: GBX 1,325.00 per share

- 2021-08: GBX 1,286.00 per share

- 2021-09: GBX 1,422.00 per share

- 2021-10: GBX 1,279.00 per share

- 2021-11: GBX 1,344.00 per share

- 2021-12: GBX 1,381.00 per share

- 2022-01: GBX 1,331.00 per share

- 2022-02: GBX 1,199.00 per share

- 2022-03: GBX 1,091.00 per share

- 2022-04: GBX 981.00 per share

- 2022-05: GBX 878.50 per share

- 2022-06: GBX 820.50 per share

- 2022-07: GBX 850.50 per share

- 2022-08: GBX 688.50 per share

- 2022-09: GBX 730.00 per share

- 2022-10: GBX 867.00 per share

- 2022-11: GBX 1,006.00 per share

- 2022-12: GBX 979.00 per share

- 2023-01: GBX 1,165.00 per share

- 2023-02: GBX 1,257.00 per share

- 2023-03: GBX 1,105.00 per share

- 2023-04: GBX 1,146.00 per share

- 2023-05: GBX 1,090.00 per share

- 2023-06: GBX 1,121.00 per share

- 2023-07: GBX 1,150.00 per share

- 2023-08: GBX 1,164.00 per share

- 2023-09: GBX 1,050.00 per share

- 2023-10: GBX 975.50 per share

- 2023-11: GBX 1,042.00 per share

- 2023-12: GBX 1,097.00 per share

- 2024-01: GBX 1,092.00 per share

- 2024-02: GBX 1,149.00 per share

- 2024-03: GBX 1,132.00 per share

- 2024-04: GBX 1,015.00 per share

- 2024-05: GBX 1,101.00 per share

- 2024-06: GBX 1,064.00 per share

- 2024-07: GBX 1,233.00 per share

- 2024-08: GBX 1,245.00 per share

- 2024-09: GBX 1,154.00 per share

- 2024-10: GBX 1,111.00 per share

- 2024-11: GBX 1,144.00 per share

- 2024-12: GBX 1,068.00 per share

- 2025-01: GBX 988.00 per share

- 2025-02: GBX 973.50 per share

- 2025-03: GBX 888.50 per share

- 2025-04: GBX 1,101.00 per share

- 2025-05: GBX 1,193.00 per share

- 2025-06: GBX 1,185.00 per share

- 2025-07: GBX 1,216.00 per share

- 2025-08: GBX 1,200.00 per share

- 2025-09: GBX 1,124.00 per share

- 2025-10: GBX 1,118.00 per share

- 2025-11: GBX 1,112.00 per share

- 2025-12: GBX 1,130.00 per share

- 2026-01: GBX 924.00 per share

- 2026-02: GBX 1,008.00 per share

- 2026-03: GBX 784.00 per share

- 2026-04: GBX 752.00 per share

- 2026-05: GBX 780.50 per share

- 2026-06: GBX 786.50 per share

- 2026-07: GBX 869.50 per share

- 2026-08: GBX 870.00 per share

- 2026-09: GBX 804.50 per share

- 2026-10: GBX 864.50 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 767.36 per share, central GBX 1,080.19 per share, high GBX 1,267.91 per share

- FY2018: low GBX 792.25 per share, central GBX 1,058.48 per share, high GBX 1,239.85 per share

- FY2019: low GBX 860.40 per share, central GBX 1,255.13 per share, high GBX 1,475.29 per share

- FY2020: low GBX 498.71 per share, central GBX 621.81 per share, high GBX 720.51 per share

- FY2021: low GBX 746.75 per share, central GBX 1,055.86 per share, high GBX 1,231.85 per share

- FY2022: low GBX 1,088.03 per share, central GBX 1,543.81 per share, high GBX 1,812.66 per share

- FY2023: low GBX 1,060.20 per share, central GBX 1,406.20 per share, high GBX 1,645.63 per share

- FY2024: low GBX 1,031.16 per share, central GBX 1,325.03 per share, high GBX 1,549.59 per share

- FY2025: low GBX 1,061.58 per share, central GBX 1,351.08 per share, high GBX 1,579.41 per share

- FY2026: low GBX 983.87 per share, central GBX 1,223.72 per share, high GBX 1,429.15 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800WCOWEI3T5DUV19/2025-06-28/ESEF/GB/0/213800WCOWEI3T5DUV19-2025-06-28/reports/213800WCOWEI3T5DUV19-2025-06-28-T01.xhtml); period 2025-06-28, filed 2025-10-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations