Accent Group Ltd (AX1) AI Stock Analysis

• Market Cap: AU$619.02M
• Dividend Yield: 7.33%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.21
• Revenue Growth: 1.58%
• EPS Growth: -4.71%
• Country: AU
• Employees: 8,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.05
• Shares Outstanding: 601,185,670
• 10 Day Avg. Volume: 1,802,084
• 30 Day Avg. Volume: 1,811,510
• PEG Ratio: -1.52
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 3.91
• 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$1.12
• Price Target Upside: 28.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): AU$1.54B

• Rating: 72 Outperform
• Price Target: AU$1.00 ▲(14.94% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

The score is led by decent financial quality driven by strong cash generation, offset by margin pressure and high leverage risk. Technicals are supportive with a clear uptrend, but overbought RSI tempers the outlook. Valuation is a positive contributor given the moderate P/E and high dividend yield.

Positive Factors

Strong operating cash generation and FCF

Accent's historically strong operating cash flow and free cash flow growth provide durable internal funding for inventory, capex, and shareholder returns. Even with a recent dip, healthy OCF-to-net-income metrics indicate real cash conversion that supports resilience through retail cycles and reduces reliance on external financing.

Diversified retail and wholesale business model

The combination of direct retail (stores + e-commerce) and wholesale distribution creates multiple revenue channels and margin levers. This structural diversification helps the company shift sales mix toward higher-margin online or DTC channels over time and cushions against localized retail disruptions.

Stable gross margins and relatively strong ROE

Relatively stable gross margins signal consistent sourcing and pricing power in footwear products, while a solid ROE indicates effective use of equity capital. Together these fundamentals support sustainable profitability and investor returns if top-line pressures are managed.

Negative Factors

High leverage and elevated debt-to-equity

Significant leverage reduces financial flexibility and raises interest-service requirements, increasing vulnerability to sales downturns or cost inflation. High debt levels constrain the firm's ability to invest in growth initiatives or absorb margin compression without refinancing or operational trade-offs.

Declining net and operating margins

Eroding net and operating margins point to ongoing pressure on underlying profitability from cost, mix, or pricing dynamics. If margins remain depressed, the company will face tougher choices on promotions, cost cutting, or margin-recovering investments, which can weaken long-term earnings power.

Inconsistent revenue growth and sharp EPS decline

Inconsistent top-line growth and a large negative EPS swing reflect volatility in demand or execution. Over the medium term this undermines forecasting, reduces operating leverage, and makes it harder to sustain reinvestment, dividends, or deleveraging without clearer, stable revenue momentum.

Accent Group Ltd Business Overview & Revenue Model

Company Description

Accent Group Limited engages in the retail, distribution, and franchise of lifestyle footwear, and apparel and accessories in Australia and New Zealand. The company's brands and banners include The Athlete's Foot, Platypus Shoes, Hype DC, Skechers, Merrell, CAT, Vans, Dr. Martens, Saucony, Timberland, Hoka One One, Superga, Kappa, Palladium, Supra, Subtype, The Trybe, Stylerunner, Glue Store and Autry. It also operates 760 stores and 36 websites across 26 various retail banners, as well as holds exclusive distribution rights for 18 international brands. The company was formerly known as RCG Corporation Limited and changed its name to Accent Group Limited in November 2017. Accent Group Limited was founded in 1981 and is based in Richmond, Australia.

How the Company Makes Money

Accent Group Ltd generates revenue primarily through the sale of footwear and related products across its retail stores and online platforms. The company has multiple revenue streams, including direct sales from its owned brands, franchise operations, and wholesale distribution to third-party retailers. Significant partnerships with global brands also contribute to its earnings, as the company often collaborates with international footwear and apparel manufacturers to enhance its product range. Seasonal promotions, loyalty programs, and exclusive product launches further drive sales, while a growing online presence helps capture an increasing share of the e-commerce market.

Accent Group Ltd Financial Statement Overview

Summary

Financials are mixed: cash generation is a key strength (healthy operating cash flow vs. net income and generally strong free cash flow), but profitability and growth are under pressure (declining net/operating margins and inconsistent revenue with a recent drop). The balance sheet adds risk due to high leverage, despite relatively strong ROE.

Income Statement

Accent Group Ltd has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, but there has been a decline in net profit margin over the years. Revenue growth has been inconsistent, with a notable decline in the most recent year. The EBIT and EBITDA margins have also seen a slight decline, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. However, the return on equity has been relatively strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced approach to financing assets.

Cash Flow

Cash flow analysis shows a strong free cash flow growth in recent years, although there was a decline in the most recent year. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting efficient cash management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.51B	1.48B	1.45B	1.41B	1.12B	981.68M
Gross Profit	289.18M	818.70M	819.23M	330.50M	233.40M	231.05M
EBITDA	287.56M	278.94M	264.62M	285.95M	207.12M	240.93M
Net Income	38.56M	57.66M	59.53M	88.65M	31.46M	76.92M
Balance Sheet
Total Assets	1.42B	1.25B	1.15B	1.15B	1.22B	1.11B
Cash, Cash Equivalents and Short-Term Investments	104.64M	39.56M	28.05M	29.72M	49.73M	34.08M
Total Debt	937.90M	535.66M	542.20M	558.28M	600.33M	484.95M
Total Liabilities	924.76M	777.91M	729.14M	713.32M	775.61M	683.20M
Stockholders Equity	495.93M	475.09M	418.81M	441.21M	440.23M	428.98M
Cash Flow
Free Cash Flow	202.12M	204.14M	214.23M	222.22M	94.45M	127.74M
Operating Cash Flow	227.62M	247.12M	246.05M	256.59M	140.35M	159.41M
Investing Cash Flow	-81.28M	-73.35M	-34.03M	-40.46M	-48.60M	-44.67M
Financing Cash Flow	-83.77M	-160.98M	-213.71M	-235.41M	-76.04M	-135.81M

Accent Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AX1, the sentiment is Neutral. The current price of 0.87 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.91, and below the 200-day MA of 1.23, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 52.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AX1.

Accent Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX1	72 Outperform	AU$619.02M	5.06	12.90%	7.33%	1.58%	-4.71%
STP	66 Neutral	AU$42.63M	-1.83	24.28%	20.30%	2.76%	1.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ADH	60 Neutral	AU$301.47M	6.10	11.70%	5.85%	3.99%	-18.35%
UNI	58 Neutral	AU$662.10M	5.43	15.62%	4.70%	15.51%	-32.98%
CCX	46 Neutral	AU$38.52M	-3.00	-24.80%	―	2.35%	95.03%

Accent Group Ltd Corporate Events

Accent Group Outlines Interim FY2026 Results and Trading Update

Accent Group Ltd has released its half year FY2026 results presentation for the period ended 28 December 2025, outlining sales, profit and a summary of financial performance. The materials flag operational highlights, an operational update, and details on dividends and a trading update, indicating that management is aiming to give investors a structured view of current trading conditions and the interim financial health of the business.

The most recent analyst rating on (AU:AX1) stock is a Hold with a A$0.93 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.

Accent Group Elevates Finance Chief Matthew Durbin to Board

Accent Group Limited has appointed Matthew Durbin to its Board as an Executive Director, effective 25 February 2026, with his title changing from Group Chief Financial and Operations Officer to Finance Director. Durbin, a qualified FCPA accountant with more than 30 years’ retail experience, including senior roles at The PAS Group and David Jones, has been with Accent Group since 2017, and his elevation to the Board strengthens the company’s financial oversight and executive leadership.

Chair Lawrence Myers welcomed Durbin’s appointment, signalling confidence in his contribution at board level and reinforcing continuity in Accent Group’s financial and operational strategy. The move is expected to enhance governance and support the company’s ongoing execution of its retail strategy, providing stakeholders with additional assurance around management depth and board capability.

The most recent analyst rating on (AU:AX1) stock is a Hold with a A$0.93 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.

Accent Group lifts sales, reshapes portfolio and backs growth plans in H1 FY26

Accent Group reported half-year FY26 earnings before interest and tax of $56.5 million and net profit after tax of $28.1 million on total sales of $865.2 million, with owned sales up 5.7% and like-for-like retail growth of 0.9%. Management highlighted solid performances from The Athlete’s Foot, HOKA, Merrell, Nude Lucy and Platypus, tighter control of operating costs and inventory, and a fully franked interim dividend of 3.25 cents per share, alongside clean aged stock levels.

The company is reshaping its store portfolio by closing loss-making Glue Store outlets while expanding higher-potential banners, opening 27 stores and closing 21 in the half to end with 898 locations. It also advanced key growth platforms with the launch of the first Sports Direct store and website, strong wholesale momentum in HOKA, Lacoste and Ugg, and a larger, lower-cost debt facility extended to 2028, positioning the group for further expansion despite a promotional retail environment and currency headwinds.

The most recent analyst rating on (AU:AX1) stock is a Hold with a A$0.93 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.

Accent Group Declares Interim Dividend of AUD 0.0325 per Share

Accent Group Ltd has declared a fully paid ordinary dividend of AUD 0.0325 per share for the six-month period ended 28 December 2025, continuing its pattern of semi-annual shareholder returns. The dividend will trade ex on 3 March 2026, with a record date of 4 March and payment scheduled for 18 March, signalling ongoing capital distribution to investors and reaffirming the company’s commitment to returning cash to shareholders.

The announcement confirms that the distribution does not require additional regulatory or shareholder approvals, simplifying the payment process for Accent Group investors. The declared payout underscores the group’s current financial capacity to maintain cash distributions, which may be viewed positively by income-focused shareholders amid broader retail market conditions.

The most recent analyst rating on (AU:AX1) stock is a Hold with a A$0.93 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.

Accent Group Lifts Revenue but Half-Year Profit Slides Over 40%

Accent Group Limited reported a 5.3% increase in revenue from ordinary activities to $816.99 million for the half year ended 28 December 2025, but profit after tax fell 40.5% to $28.09 million, indicating margin or cost pressures despite top-line growth. The board declared a fully franked final dividend of 1.5 cents per share for 2025 and an interim dividend of 3.25 cents for 2026, while net tangible assets per share rose to 11.63 cents from 8.31 cents a year earlier, highlighting an improved asset backing for shareholders even as profitability softened.

The most recent analyst rating on (AU:AX1) stock is a Hold with a A$0.93 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.

Accent Group Sets Date for FY26 Half-Year Results and Investor Briefing

Accent Group Limited has advised the market that it will release its financial results for the half-year ended 28 December 2025 on Wednesday, 25 February 2026. The company has scheduled a FY26 half-year investor briefing call on the same day at 10:00am AEDT, underscoring its commitment to engaging with investors and providing transparency around its interim performance ahead of what may be a key indicator of trading conditions in the retail footwear market.

The most recent analyst rating on (AU:AX1) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on Accent Group Ltd stock, see the AU:AX1 Stock Forecast page.