While end markets have weakened, DNLM has the hall-marks of a compelling investment case –> no.1 in a highly fragmented market, significant geographic expansion potential, major investments in infrastructure/systems to drive growth (especially online) and unlock efficiencies, and highly cash generative. But the stock has de-rated to just 11x P/E in response to d/grades, mostly driven by short term losses/costs, which don’t recur. Consensus expects no ‘underlying’ PBT growth in FY18 and RoIC to h ....
13 Sep 2017
N+1 Singer - Dunelm - Confidence in expansion + ambition to double profit medium term
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N+1 Singer - Dunelm - Confidence in expansion + ambition to double profit medium term
Dunelm Group plc (DNLM:LON) | 1,109 22.2 0.2% | Mkt Cap: 2,242m
- Published:
13 Sep 2017 -
Author:
Matthew McEachran -
Pages:
4
While end markets have weakened, DNLM has the hall-marks of a compelling investment case –> no.1 in a highly fragmented market, significant geographic expansion potential, major investments in infrastructure/systems to drive growth (especially online) and unlock efficiencies, and highly cash generative. But the stock has de-rated to just 11x P/E in response to d/grades, mostly driven by short term losses/costs, which don’t recur. Consensus expects no ‘underlying’ PBT growth in FY18 and RoIC to h ....