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1. Company Snapshot

1.a. Company Description

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails upholstered furniture in the United Kingdom and Europe.The company retails sofas under the DFS and Sofology brands; and modern furniture, lighting, and home accessories under the brand name.It also engages in the contract logistics business.


It operates a network of 126 DFS showrooms, 50 Sofology stores, and 36 Dwell showrooms.The company also sells its products through websites.DFS Furniture plc was founded in 1969 and is headquartered in Doncaster, the United Kingdom.

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1.b. Last Insights on DFS

DFS Furniture's recent performance has been impacted by a decline in investor sentiment. The company's shares have faced challenges, with a notable decrease in value over the past quarter. A year of investment in the company would have yielded a 21% gain, but recent months have seen a downturn. There is no information on recent earnings releases, new product launches, or legal issues. The company's market presence and size may be contributing factors. A year-on-year gain suggests prior success.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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DFS shrugs off shoppers’ Budget worries as orders rise

Nov -14

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Nov -12

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3 UK Stocks Estimated To Be Up To 49.8% Below Intrinsic Value

Nov -11

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Nov -06

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UK Value Stocks Trading At Up To 49.1% Estimated Discount

Oct -29

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UK Stock Market's October 2025 Picks For Estimated Value Opportunities

Oct -21

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3 UK Stocks That May Be Undervalued In October 2025

Oct -20

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Declining Stock and Decent Financials: Is The Market Wrong About DFS Furniture plc (LON:DFS)?

Oct -16

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.89%)

6. Segments

DFS

Expected Growth: 4.0%

DFS Furniture's 4.0% growth is driven by increasing demand for online furniture shopping, strategic store refurbishments, and effective marketing campaigns. Additionally, the company's focus on providing affordable, stylish, and quality products resonates with budget-conscious consumers, contributing to its growth momentum.

Sofology

Expected Growth: 3.5%

Sofology's 3.5% growth is driven by increasing demand for premium sofas, successful marketing campaigns, and strategic store openings. Additionally, DFS Furniture plc's investment in e-commerce and omnichannel capabilities has enhanced the brand's online presence, attracting a wider customer base and driving sales growth.

7. Detailed Products

Sofas

DFS Furniture plc offers a wide range of stylish and comfortable sofas in various designs, fabrics, and sizes to suit different living rooms and tastes.

Chairs

DFS Furniture plc provides a variety of stylish and comfortable chairs, including recliners, armchairs, and accent chairs, to complement any living room decor.

Sofa Beds

DFS Furniture plc offers a range of sofa beds that combine comfort and practicality, perfect for small spaces or guest rooms.

Corner Sofas

DFS Furniture plc's corner sofas are designed to maximize space and comfort, available in various configurations and fabrics.

Recliners

DFS Furniture plc's recliners offer the ultimate relaxation experience, with features like footrests, cup holders, and adjustable headrests.

Dining Furniture

DFS Furniture plc provides a range of stylish and functional dining tables, chairs, and benches to suit different dining styles and spaces.

Mattresses

DFS Furniture plc offers a range of high-quality mattresses from leading brands, ensuring a comfortable and restful sleep.

8. DFS Furniture plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DFS Furniture plc is medium due to the presence of alternative furniture retailers and online marketplaces. However, the company's strong brand reputation and wide range of products mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for DFS Furniture plc due to the company's strong brand reputation and wide range of products. Customers have limited bargaining power, and the company has a strong pricing strategy.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for DFS Furniture plc due to the company's dependence on a few large suppliers. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low for DFS Furniture plc due to the high barriers to entry in the furniture retail industry. The company's strong brand reputation, wide range of products, and established supply chain make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry is high for DFS Furniture plc due to the presence of several established competitors in the furniture retail industry. The company faces intense competition from online retailers and traditional brick-and-mortar stores, which puts pressure on prices and profit margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.31%
Debt Cost 7.65%
Equity Weight 48.69%
Equity Cost 11.80%
WACC 9.67%
Leverage 105.40%

11. Quality Control: DFS Furniture plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Atal

A-Score: 6.5/10

Value: 6.0

Growth: 3.6

Quality: 5.6

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Debica

A-Score: 6.3/10

Value: 8.7

Growth: 3.9

Quality: 4.1

Yield: 8.1

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Villeroy & Boch

A-Score: 5.6/10

Value: 7.7

Growth: 3.9

Quality: 3.2

Yield: 8.8

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Elopak

A-Score: 5.6/10

Value: 5.1

Growth: 6.4

Quality: 5.2

Yield: 4.4

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
DFS

A-Score: 5.4/10

Value: 7.8

Growth: 5.0

Quality: 4.2

Yield: 3.8

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Roche Bobois

A-Score: 4.5/10

Value: 5.4

Growth: 4.0

Quality: 4.0

Yield: 6.9

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.6$

Current Price

1.6$

Potential

-0.00%

Expected Cash-Flows