Dunelm Group Share Price Forecast July 2021 – Time to Buy DNLM?
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As the pandemic has swept a wave of uncertainty through the world economy, it has been a rollercoaster ride particularly for U.K. – based shares. However, Dunelm Group PLC (LSE: DNLM) is part of an elite group of U.K. shares. It puts them in a group of large caps which have a powerful presence in pension portfolios and investment funds. Hence the performance of their shares is closely watched by investors.
Dunelm Group PLC – TechnicalDunelm Group Share Price Forecast July 2021 – Time to Buy DNLM? Analysis
According to its financial statement, Dunelm Group PLC has a market capitalisation of £2.88 billion with total assets worth £810.8 million. Revenue for 2020 was at £1.06 billion with a profit margin of 8.29%. DNLM shares are trading at £1421 at the time of writing. Their shares experienced a 200% increase over the last 3 years.
Oscillators for Dunelm Group PLC, such as Relative Strength Index (14)(47), Stochastic %K (14, 3, 3)(65), Commodity Channel Index (20)(7) and Average Directional Index (14)(19) point towards neutral. On the flip side Moving averages such as Volume Weighted Moving Average (20)(1421) and Hull Moving Average (9)(1456) are pointing towards selling.
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Recent Developments
The Dunelm share price has seen an absolute move of 19.2% over the last year, despite the presence of volatility. During the last 3 years of share price growth, the company has achieved a 14% compound earnings per share growth per year. Its EPS growth is outpaced by a 44% per year gain in the share prices. This means that the opinion of the market has changed compared to what it was three years ago.
Should You Buy DNLM Shares?
Investors should consider the total shareholder return or TSR, in addition to share price return, as it gives a clearer picture for companies like Dunelm Group PLC. In this case, the TSR is 235% for the last three years, exceeding share price returns. By looking at its current share price, it looks like DNLM’s optimistic future growth has been factored into it. The company’s profits are also expected to grow by 29% as is the forecast for the following 2 years. This is helped by a higher cash flow which feels into a higher share valuation.
Dunelm Group PLC’s (PE) ratio of 27.25x is above most of its competitors who have an average of 20.95. This suggests that the shares are trading at a higher price compared to the whole industry. However, DNLM shares have been volatile in the past, which means they can sink lower in the future. This will give investors another chance to invest.
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