Accent Group Ltd (AX1) AI Stock Analysis

• Market Cap: AU$576.95M
• Dividend Yield: 7.33%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.11
• Revenue Growth: 1.58%
• EPS Growth: -4.71%
• Country: AU
• Employees: 8,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.02
• 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$1.11
• Price Target Upside: 15.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$1.00 ▲(4.17% Upside)

The overall stock score for Accent Group Ltd is primarily influenced by its stable financial performance and attractive valuation. Despite high leverage and pressure on margins, the company shows strong cash generation capabilities. The technical analysis indicates bearish momentum, which is a significant risk factor. However, the low P/E ratio and high dividend yield enhance the stock's attractiveness, balancing the technical weaknesses.

Positive Factors

Cash Generation Ability

Strong cash generation supports liquidity and operational efficiency, enabling investment in growth and resilience against financial challenges.

Product Portfolio

A diverse brand portfolio allows Accent Group to cater to various customer demographics, enhancing market reach and reducing reliance on a single brand.

E-commerce Growth

Expansion in e-commerce strengthens market position and aligns with consumer trends, offering potential for sustained revenue growth.

Negative Factors

Leverage Concerns

High leverage increases financial risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Margin Pressure

Margin pressure and inconsistent revenue growth can hinder profitability and limit the ability to reinvest in business operations.

Net Profit Margin Decline

A declining net profit margin indicates challenges in maintaining cost efficiency, which could affect long-term profitability and competitiveness.

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

Accent Group Ltd demonstrates a stable financial position with some areas of concern. The income statement shows pressure on margins and inconsistent revenue growth. The balance sheet highlights high leverage, which could pose risks if not managed carefully. However, the cash flow statement reflects strong cash generation capabilities, which is a positive sign for the company's liquidity and operational efficiency.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.47B	1.48B	1.45B	1.41B	1.12B	981.68M
Gross Profit	558.80M	818.70M	819.23M	330.50M	233.40M	231.05M
EBITDA	289.85M	278.94M	264.62M	285.95M	207.12M	240.93M
Net Income	57.66M	57.66M	59.53M	88.65M	31.46M	76.92M
Balance Sheet
Total Assets	1.25B	1.25B	1.15B	1.15B	1.22B	1.11B
Cash, Cash Equivalents and Short-Term Investments	39.56M	39.56M	28.05M	29.72M	49.73M	34.08M
Total Debt	535.66M	535.66M	542.20M	558.28M	600.33M	484.95M
Total Liabilities	777.91M	777.91M	729.14M	713.32M	775.61M	683.20M
Stockholders Equity	475.09M	475.09M	418.81M	441.21M	440.23M	428.98M
Cash Flow
Free Cash Flow	215.50M	204.14M	214.23M	222.22M	94.45M	127.74M
Operating Cash Flow	247.12M	247.12M	246.05M	256.59M	140.35M	159.41M
Investing Cash Flow	-73.35M	-73.35M	-34.03M	-40.46M	-48.60M	-44.67M
Financing Cash Flow	-160.98M	-160.98M	-213.71M	-235.41M	-76.04M	-135.81M

Accent Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AX1, the sentiment is Negative. The current price of 0.96 is above the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.12, and below the 200-day MA of 1.46, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 84.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AX1.

Accent Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STP	79 Outperform	AU$64.87M	4.90	24.28%	20.30%	2.76%	1.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AX1	61 Neutral	AU$576.95M	9.44	12.90%	7.33%	1.58%	-4.71%
ADH	58 Neutral	AU$301.47M	12.29	11.70%	5.85%	3.99%	-18.35%
UNI	58 Neutral	AU$627.58M	27.01	15.62%	4.70%	15.51%	-32.98%
CCX	55 Neutral	AU$44.29M	-7.93	-24.80%	―	2.35%	95.03%

Accent Group Ltd Corporate Events

Accent Group’s AGM Results Highlight Governance Challenges

Accent Group Limited announced the results of its 2025 Annual General Meeting, revealing that while Item 3 was passed, Item 2 did not receive the required majority of votes, marking a first strike under the Corporations Act 2001. Items 4, 5, and 6(a) and (b) were withdrawn prior to the meeting, indicating potential strategic shifts or reconsiderations within the company’s governance and executive compensation plans.

Accent Group Reports $1.46 Billion in Sales Amid Challenging Market

At the 2025 Annual General Meeting, Accent Group Ltd reported total company-owned sales of $1.46 billion for FY25, with a net profit after tax of $57.7 million, despite a challenging consumer environment. The meeting also addressed the temporary absence of CEO Daniel Agostinelli due to illness, with the senior executive team taking on additional responsibilities. The company withdrew several agenda items following discussions with proxy advisors and shareholders, indicating a responsive approach to stakeholder engagement.

Accent Group Reports Sales Growth Amid Challenging Market Conditions

Accent Group Limited reported a 3.7% increase in total sales for the first 20 weeks of FY26, despite a challenging retail market and a slight decline in like-for-like retail sales. The company is managing costs and inventory effectively, but expects lower EBIT for H1 due to promotional pressures and the discontinuation of MySale operations. The opening of the first Sports Direct store marks a significant expansion milestone, with plans for further store openings in the coming years.

Accent Group Ltd Releases 2025 Annual Report

Accent Group Ltd has released its Annual Report for 2025, detailing its financial performance and strategic initiatives. The report includes insights into the company’s sustainability efforts, brand portfolio, and financial statements, providing stakeholders with a comprehensive overview of its operations and future outlook.

Accent Group Announces 2025 AGM with Key Leadership Transition

Accent Group Limited has announced its 2025 Annual General Meeting (AGM), scheduled for November 21, 2025, which will be held as a hybrid meeting, allowing shareholders to attend either in person or virtually. Key agenda items include the adoption of the Remuneration Report, the election of a new director, and the approval of performance rights plans. The meeting will also mark the retirement of the current chairman, David Gordon, who will be succeeded by Lawrence Myers. The company emphasizes transparency and alignment of executive remuneration with its strategic goals to ensure sustainable long-term returns for shareholders.

Accent Group Clarifies ASX Waiver Misstatement

Accent Group Limited has clarified a recent media misstatement regarding a waiver from ASX Listing Rule 6.23.3, which was incorrectly reported to apply to CEO Daniel Agostinelli’s Tranche 8 performance rights. The waiver actually pertains to performance rights held by other employees, with any proposed changes subject to shareholder approval at the upcoming 2025 Annual General Meeting.

Accent Group Seeks Shareholder Approval for Performance Rights Variation

Accent Group Limited has received a waiver from the ASX to modify the performance conditions of its Tranche 8 performance rights, excluding those held by its CEO. The company plans to seek shareholder approval for this change at its 2025 Annual General Meeting. This decision comes as a response to challenges posed by the post-COVID economic environment, which have impacted the company’s earnings and made previous performance targets unrealistic. The proposed changes aim to better align performance incentives with current economic conditions and ensure employee retention.