Adore Beauty Group Ltd. (ABY) AI Stock Analysis

• Market Cap: AU$94.43M
• Dividend Yield: N/A
• Average Volume (3M): 52.36K
• Price to Earnings (P/E): 131.5
• Beta (1Y): 0.76
• Revenue Growth: 1.58%
• EPS Growth: -65.09%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): <0.01
• Shares Outstanding: 93,957,930
• 10 Day Avg. Volume: 37,770
• 30 Day Avg. Volume: 52,359
• PEG Ratio: -1.26
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 23.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.25
• Price Target Upside: 17.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: AU$1.00 ▼(-5.66% Downside)

Adore Beauty Group Ltd. demonstrates strong revenue growth and a solid financial position, but faces significant challenges in profitability and cash flow management. Technical indicators are mixed, and the stock appears overvalued with a high P/E ratio and no dividend yield. These factors suggest a cautious outlook.

Adore Beauty Group Ltd. Business Overview & Revenue Model

Company Description

Adore Beauty Group Ltd. (ABY) is a leading online beauty retailer based in Australia, specializing in the sale of a wide range of skincare, makeup, haircare, and wellness products. The company operates primarily in the e-commerce sector, offering an extensive selection of both local and international brands. Adore Beauty aims to provide customers with a seamless shopping experience through its user-friendly platform, focusing on delivering high-quality products and expert beauty advice.

How the Company Makes Money

Adore Beauty generates revenue primarily through the sale of beauty and personal care products on its online platform. Key revenue streams include direct sales of branded products, private label offerings, and subscription services. The company benefits from a growing customer base and repeat purchases, driven by its loyalty program and targeted marketing strategies. Additionally, Adore Beauty may engage in partnerships with beauty brands for exclusive launches or promotions, which further enhances its revenue potential. Seasonal sales, promotions, and limited-time offers also contribute to spikes in sales, while the company's strong online presence and effective digital marketing campaigns help attract new customers.

Adore Beauty Group Ltd. Financial Statement Overview

Summary

Adore Beauty Group Ltd. demonstrates strong revenue growth and a solid equity position, indicating a stable financial foundation. However, the company faces challenges in profitability and cash flow generation, which require strategic focus to enhance operational efficiency and cash conversion. The balance sheet's low leverage is a positive aspect, providing financial flexibility. Overall, the company is on a growth trajectory but needs to address profitability and cash flow management to sustain long-term success.

Income Statement

Adore Beauty Group Ltd. has shown a strong revenue growth rate of 39.7% in the latest period, indicating robust sales expansion. The gross profit margin improved to 35.31%, reflecting efficient cost management. However, the net profit margin remains low at 0.38%, suggesting limited profitability after expenses. The EBIT margin of 2.05% and EBITDA margin of 2.32% indicate moderate operational efficiency. Overall, the income statement reflects strong sales growth but highlights the need for improved profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.26 indicates a conservative leverage position, which is favorable for financial stability. The return on equity (ROE) is modest at 1.89%, suggesting limited returns to shareholders. The equity ratio of 48.03% shows a solid equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with low leverage but highlights the need for improved returns on equity.

Cash Flow

Adore Beauty Group Ltd. experienced a significant decline in free cash flow growth, down by 1825.17%, indicating challenges in generating cash from operations. The operating cash flow to net income ratio of 0.23 suggests limited cash generation relative to net income. The free cash flow to net income ratio of 0.33 indicates moderate cash conversion efficiency. Overall, the cash flow statement highlights challenges in cash generation and conversion, necessitating improvements in operational cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	198.81M	198.81M	195.72M	182.18M	199.66M	179.28M
Gross Profit	70.21M	70.21M	65.47M	38.51M	44.64M	39.56M
EBITDA	4.62M	4.62M	5.45M	883.00K	5.36M	1.67M
Net Income	761.00K	761.00K	2.17M	-559.00K	2.38M	845.00K
Balance Sheet
Total Assets	83.81M	83.81M	67.67M	62.41M	59.23M	56.39M
Cash, Cash Equivalents and Short-Term Investments	12.67M	12.67M	32.85M	27.76M	29.77M	29.00M
Total Debt	10.45M	10.45M	1.72M	624.00K	1.17M	1.35M
Total Liabilities	43.55M	43.55M	28.02M	26.19M	21.91M	22.13M
Stockholders Equity	40.26M	40.26M	39.65M	36.22M	37.32M	34.26M
Cash Flow
Free Cash Flow	2.60M	2.60M	4.90M	-1.42M	1.26M	2.12M
Operating Cash Flow	7.94M	7.94M	8.32M	820.00K	3.15M	4.12M
Investing Cash Flow	-26.89M	-26.89M	-3.42M	-2.24M	-1.89M	-1.99M
Financing Cash Flow	-1.24M	-1.24M	195.00K	-587.00K	-494.00K	10.31M

Adore Beauty Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABY, the sentiment is Positive. The current price of 1.06 is below the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.04, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ABY.

Adore Beauty Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHM	67 Neutral	AU$54.53M	8.36	17.58%	6.94%	-13.36%	14.09%
SSG	67 Neutral	AU$189.31M	12.61	16.91%	7.10%	-0.35%	-1.96%
BBN	66 Neutral	AU$383.18M	39.04	8.94%	1.03%	4.72%	465.60%
DSK	66 Neutral	AU$56.35M	12.80	12.71%	7.73%	8.39%	3.21%
ABY	62 Neutral	AU$94.43M	131.48	1.90%	―	1.58%	-65.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KGN	46 Neutral	$329.75M	231.61	-40.52%	4.35%	6.24%	-23341.18%

Adore Beauty Group Ltd. Corporate Events

Adore Beauty Group Appoints New Alternate Non-Executive Director

Adore Beauty Group Ltd. has announced the appointment of James Height as an Alternate Non-Executive Director, effective June 27, 2025. Height holds 10,400,000 fully paid ordinary shares, and along with Kate Morris, intends to act in concert concerning their shares in the company. This appointment and the concerted action may influence the company’s strategic decisions and shareholder dynamics.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Appoints Co-Founder as Alternate Non-Executive Director

Adore Beauty Group Limited has appointed Mr. James Height as an alternate non-executive director for Ms. Kate Morris, effective June 27, 2025. Mr. Height, a co-founder of Adore Beauty, has held various leadership roles within the company, including Director, joint CEO, sole CEO, and Chief Data Officer. This appointment is expected to leverage his extensive experience and contribute to the company’s strategic direction.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.05 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.