I've been keeping an eye on Dunelm Group plc (LON:DNLM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DNLM has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Dunelm Group here.
Established dividend payer with adequate balance sheet
Over the past year, DNLM has grown its earnings by 14%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 54%, which is what investors like to see! DNLM's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that DNLM manages its cash and cost levels well, which is a key determinant of the company’s health. DNLM appears to have made good use of debt, producing operating cash levels of 1.55x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
DNLM is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Dunelm Group, I've put together three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for DNLM’s future growth? Take a look at our free research report of analyst consensus for DNLM’s outlook.
- Valuation: What is DNLM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DNLM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DNLM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.