Dunelm GroupFRA:DFQ +2.19%83 Gross Margin % is 53.41% as of Dec. 2025, which is 6% above its 10-year median of 50.21. GuruFocus rates FRA:DFQ with a GF Score™ of 83/100 and a GF Value™ of €13.57 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Dunelm Group ranks better than 76.45% on this metric.
The historical rank and industry rank for Dunelm Group's Gross Margin % or its related term are showing as below:
FRA:DFQ'
s Gross Margin % Range Over the Past 10 Years
Min: 47.96 Med: 50.21 Max: 52.73
Current: 52.73
During the past 13 years, the highestGross Margin % of Dunelm Group was 52.73%. The lowest was 47.96%. And the median was 50.21%.
FRA:DFQ's Gross Margin % is ranked better than 76.45% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs FRA:DFQ: 52.73
Dunelm Group had a gross margin of 53.41% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Dunelm Group was 0.60% per year.
Dunelm Group (FRA:DFQ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dunelm Group had a gross margin of 53.41% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dunelm Group Gross Margin % Related Terms
Dunelm Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dunelm Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:DFQ vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Dunelm Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dunelm Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Dunelm Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dunelm Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dunelm Group (FRA:DFQ) has a Gross Margin % of 53.41% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dunelm Group and its competitors. This is near median its historical median of 50.21. Over the past decade, Dunelm Group's Gross Margin % has ranged from 47.96 to 52.73. According to the industry distribution chart, Dunelm Group ranks #263 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 23.5%.
Is Dunelm Group's Gross Margin % too high?
Dunelm Group's current Gross Margin % of 53.41% is near median its 10-year median of 50.21. Over the past 10 years, this metric has ranged from a low of 47.96 to a high of 52.73. The Retail - Cyclical industry median Gross Margin % is 36.23. Dunelm Group's value of 53.41% is 47.4% above this industry median. Based on the distribution chart, Dunelm Group ranks #263 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Dunelm Group has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dunelm Group's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Dunelm Group ranks #263 out of 1117 companies for Gross Margin %. This places Dunelm Group in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Dunelm Group's value of 53.41% is 47.4% above this benchmark. Historically, Dunelm Group's own Gross Margin % has ranged from 47.96 to 52.73 over the past decade. While the company's 10-year median is 50.21 vs. the industry median of 36.23, Dunelm Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dunelm Group's current Gross Margin % of 53.41% is 47.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dunelm Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dunelm Group's current Gross Margin % is 53.41%, which is near median its own 10-year median of 50.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dunelm Group stock overvalued right now?
Based on GuruFocus' analysis, Dunelm Group (FRA:DFQ) is currently considered Significantly Undervalued. The stock's GF Value™ is €13.57, compared to a current price of €9.35 — trading 31.1% below its estimated fair value. The current Gross Margin % is 53.41%, which is near median its 10-year median of 50.21 and 47.4% above the Retail - Cyclical industry median of 36.23. Dunelm Group's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dunelm Group (FRA:DFQ), the current Gross Margin % is 53.41% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dunelm Group (FRA:DFQ) Overvalued in 2026?
Based on GuruFocus' analysis, Dunelm Group stock appears to be undervalued.
The current stock price of €9.35 is trading 31.1% below its estimated GF Value™ of €13.57.
GuruFocus considers Dunelm Group to be Significantly Undervalued.
Key valuation signals for FRA:DFQ:
Gross Margin %: 53.41% (near median its 10-year median of 50.21)
GF Value™: €13.57 vs. price of €9.35 (31.1% below fair value)
Industry Position: 47.4% above the Retail - Cyclical median (#263 of 1117)
No single metric tells the full story. See the FRA:DFQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dunelm Group PLC is a UK home-furnishing retailer. The company operates superstores, high street stores, and multichannel retail formats, such as online and telephone ordering. The diverse product offering ranges from textiles, such as bedding, curtains, cushions, quilts, and pillows, to kitchenware and dining. The products have exclusive designs and are sold under premium brands such as Dorma. Dunelm offers customers high-quality products in a broad price spectrum, supported by customer service and support. The group has one reportable segment, which is the operations to enable the retail of homewares in the UK and Ireland.
83GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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