Want to see AU:ABY full AI Analyst Report?
Top Page
Adore Beauty Group Ltd.
(Sydney:ABY)
Select Model
Select Model
Rating:59Neutral
Price Target:
AU$0.26
▼(-79.77% Downside)
Action:Reiterated
Date:03/24/26
The score is held back most by weak technicals (deep downtrend and bearish momentum) and expensive valuation (very high P/E with no dividend yield provided). Financially, strong revenue growth and a conservatively levered balance sheet are positives, but thin profitability and weak cash-flow conversion remain key constraints. The latest earnings call was supportive due to improving operating execution and constructive guidance, partially offsetting near-term margin, lease-cost, inventory, and funding risks.
Positive Factors
Revenue growth & improving gross margin
Sustained top-line expansion and a higher gross margin signal stronger product mix, better buying/pricing and scale benefits. Over the next 2–6 months, this supports reinvestment in marketing, fulfillment and product range while cushioning operating leverage as the business scales.
Negative Factors
Weak cash generation
Very weak cash conversion means reported profits are not translating into operating cash, limiting the company's ability to self-fund growth. Over months this raises reliance on external funding, constrains capex flexibility and increases vulnerability to funding cost or timing shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & improving gross margin
Sustained top-line expansion and a higher gross margin signal stronger product mix, better buying/pricing and scale benefits. Over the next 2–6 months, this supports reinvestment in marketing, fulfillment and product range while cushioning operating leverage as the business scales.
Read all positive factors
Adore Beauty Group Ltd. (ABY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$26.31M
Dividend YieldN/A
Average Volume (3M)45.58K
Price to Earnings (P/E)85.3
Beta (1Y)0.57
Revenue Growth4.92%
EPS Growth-82.38%
CountryAU
Employees171
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)<0.01
Shares Outstanding93,957,930
10 Day Avg. Volume31,985
30 Day Avg. Volume45,580
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)1.55
Price to Sales (P/S)0.31
P/FCF Ratio23.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.39Price Target Upside-69.77% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$231.40M
Adore Beauty Group Ltd. Business Overview & Revenue Model
Company Description
Adore Beauty Group Limited operates an integrated content, marketing, and e-commerce retail platform in Australia and New Zealand. The company engages in the retail of beauty and personal care products, including skin, hair, make up, accessories, ...
How the Company Makes Money
Adore Beauty primarily makes money by retailing beauty and personal care products online, earning revenue from product sales to consumers via its e-commerce storefront. Its core revenue stream is the margin between the price it pays to source inve...
Adore Beauty Group Ltd. Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial update: record underlying EBITDA, double-digit new customer growth, improved marketing efficiency, strong early traction from stores and owned brands, and investments in a national fulfillment center, ERP and AI to drive future efficiency. Near-term challenges include margin pressure from an overperforming promotional period, higher lease-related costs as the retail footprint scales, elevated inventory after peak season, and the need to secure funding for growth initiatives. Overall the positives (revenue and profit growth, customer metrics, operational investments and efficiency gains) materially outweigh the manageable execution and timing risks.Positive Updates
Record Underlying EBITDA and Statutory EBITDA
Underlying EBITDA of $4.1M on a pre-AASB16 basis, up 14.5% YoY, at a margin of 3.7% (equivalent to ~5.5% under the prior reporting methodology). Statutory EBITDA was $4.9M.
Negative Updates
Gross Margin Pressure from Promotional Overperformance
Gross margin for the half was 35% but was ~120 basis points lower in the period due to the overperformance and share of Black Friday/Cyber Monday promotions, creating short-term margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Underlying EBITDA and Statutory EBITDA
Underlying EBITDA of $4.1M on a pre-AASB16 basis, up 14.5% YoY, at a margin of 3.7% (equivalent to ~5.5% under the prior reporting methodology). Statutory EBITDA was $4.9M.
Read all positive updates
Company Guidance
Management guided FY‑26 underlying group EBITDA of 3–4% on a pre‑AASB16 basis (equivalent to 5–6% under the prior methodology), noting H1 underlying EBITDA was A$4.1m (pre‑AASB16 margin 3.7%) on A$111.9m revenue (up 8.7%); they expect owned brands to represent >6% of group revenue in FY‑26, target >1.25m active customers in FY‑27 (H1 active customers 850k, +4.7%), and plan a national retail network of 20 stores by the end of this half and 25+ stores by end FY‑27 (store payback 1–2 years). Key operational milestones are launching the new ERP in Q4 and bringing a 6,300 sqm semi‑automated Broadmeadows fulfillment centre online in Q1 FY‑27 (initial capital outlay ~A$8m, CBA‑backed, expected payback <4 years). Management reiterated focus on driving marketing efficiency and quality of earnings—CAC more than halved to A$33, marketing spend down ~30% to ~8.6% of sales, 509k Rewards members contributing ~77–78% of sales, app sales = 35% of online, improved inventory health (>60% within 60 days, stock turn +11.7%)—to support future customer revenue and profit growth.Adore Beauty Group Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.78M | 198.81M | 195.72M | 182.18M | 199.66M | 179.28M |
| Gross Profit | 52.59M | 70.21M | 65.47M | 38.51M | 44.64M | 39.56M |
| EBITDA | 8.52M | 4.62M | 5.45M | 883.00K | 5.36M | 1.67M |
| Net Income | 322.00K | 761.00K | 2.17M | -559.00K | 2.38M | 845.00K |
Balance Sheet | ||||||
| Total Assets | 109.76M | 83.81M | 67.67M | 62.41M | 59.23M | 56.39M |
| Cash, Cash Equivalents and Short-Term Investments | 8.21M | 12.67M | 32.85M | 27.76M | 29.77M | 29.00M |
| Total Debt | 48.89M | 10.45M | 1.72M | 624.00K | 1.17M | 1.35M |
| Total Liabilities | 69.04M | 43.55M | 28.02M | 26.19M | 21.91M | 22.13M |
| Stockholders Equity | 40.72M | 40.26M | 39.65M | 36.22M | 37.32M | 34.26M |
Cash Flow | ||||||
| Free Cash Flow | -2.44M | 2.60M | 4.90M | -1.42M | 1.26M | 2.12M |
| Operating Cash Flow | 8.65M | 7.94M | 8.32M | 820.00K | 3.15M | 4.12M |
| Investing Cash Flow | -13.63M | -26.89M | -3.42M | -2.24M | -1.89M | -1.99M |
| Financing Cash Flow | 1.55M | -1.24M | 195.00K | -587.00K | -494.00K | 10.31M |
Adore Beauty Group Ltd. Technical Analysis
Neutral
1.29
Price Trends
0.28
Negative
0.32
Negative
0.67
Negative
Market Momentum
>-0.01
Negative
53.83
Neutral
45.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABY, the sentiment is Neutral. The current price of 1.29 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.28, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ABY.
Adore Beauty Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$191.28M | 12.56 | 16.49% | 7.05% | 1.50% | 1.68% | |
62 Neutral | AU$42.34M | 8.88 | 13.53% | 8.20% | 4.03% | -14.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$439.85M | -11.27 | -69.14% | 3.65% | 4.41% | -2505.17% | |
61 Neutral | AU$269.71M | 13.60 | 8.37% | 5.85% | 5.66% | -42.42% | |
59 Neutral | AU$26.31M | 85.29 | 0.80% | ― | 4.92% | -82.38% | |
55 Neutral | AU$622.36M | 77.10 | 5.66% | ― | 18.85% | 20.89% |
* Consumer Cyclical Sector Average
AU:ABY
Adore Beauty Group Ltd.
0.29
-0.53
-64.63%
AU:KGN
Kogan.com
4.56
0.70
18.20%
AU:TPW
Temple & Webster Group Ltd
5.24
-23.11
-81.52%
AU:ADH
Adairs Ltd.
1.47
-0.62
-29.63%
AU:DSK
Dusk Group Ltd.
0.69
-0.21
-23.41%
AU:SSG
Shaver Shop Group Ltd.
1.43
0.08
5.85%
Adore Beauty Group Ltd. Corporate Events
Adore Beauty CFO Resigns as Company Installs Interim Finance Chief
Jul 28, 2026
Adore Beauty Group has announced the resignation of Chief Financial Officer and Joint Company Secretary Marcus Crowe, who is departing for personal reasons but will remain through a transition period to ensure an orderly handover. The company has ...
Adore Beauty Performance Rights Lapse Clarifies Capital Structure
Jul 6, 2026
Adore Beauty Group Ltd., an Australian-listed online beauty and personal care retailer trading under the ASX code ABY, focuses on selling cosmetics, skincare, and related products via its e-commerce platform. The company competes in the broader di...
Adore Beauty Expands Debt Facilities to Support Omni-Channel Growth
Jun 29, 2026
Adore Beauty Group has refinanced its debt facilities with the Commonwealth Bank of Australia, increasing its total borrowing capacity to $25.2 million under a new three-year agreement. The package comprises a $17 million working capital facility ...
Adore Beauty Targets Higher Profit After Investment-Heavy Expansion
May 25, 2026
Adore Beauty reported that revenue for the first 47 weeks of FY26 rose 7.4% to $193.4 million, with new customer acquisition up 13.9% and H2 gross margins expected to hold at 34.5%. The group opened three new stores in Kotara, Parramatta and Robin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.