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Baby Bunting Group Ltd.
(Sydney:BBN)
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Rating:58Neutral
Price Target:
AU$1.00
▼(-10.71% Downside)
Action:Reiterated
Date:06/25/26
The score is primarily supported by improving gross margins and strong free cash flow growth, but it is held back by weak profitability (including negative EBIT margin) and higher leverage. Technicals add further pressure with the stock trading below key longer-term moving averages, while valuation appears relatively high with a P/E of 26.444 and no dividend yield.
Positive Factors
Improving Gross Margin
Gross margin expansion to ~40% reflects better pricing, procurement or product mix. Sustained higher gross margin provides a durable buffer against cost inflation, supports funding of store and online investment, and improves scope to move toward positive operating profitability over months.
Negative Factors
Weak Operating Profitability
Very low net margin and negative EBIT indicate operating cost structure or SG&A intensity is outpacing gross profit gains. This structural profitability shortfall limits reinvestment capacity and raises the urgency to improve operational efficiency to deliver sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margin
Gross margin expansion to ~40% reflects better pricing, procurement or product mix. Sustained higher gross margin provides a durable buffer against cost inflation, supports funding of store and online investment, and improves scope to move toward positive operating profitability over months.
Read all positive factors
Baby Bunting Group Ltd. (BBN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$164.90M
Dividend YieldN/A
Average Volume (3M)315.55K
Price to Earnings (P/E)23.0
Beta (1Y)1.68
Revenue Growth6.54%
EPS Growth17.11%
CountryAU
Employees1,560
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding136,843,900
10 Day Avg. Volume441,528
30 Day Avg. Volume315,554
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.20
Price to Sales (P/S)0.48
P/FCF Ratio6.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.52Price Target Upside125.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.15
Revenue Forecast (FY)AU$590.96M
Baby Bunting Group Ltd. Business Overview & Revenue Model
Company Description
Baby Bunting Group Limited, along with its various subsidiaries, operates as a prominent specialist retailer providing goods for mothers and babies. The company primarily serves Australia through a network of 65 physical outlets and its e-commerce...
How the Company Makes Money
Baby Bunting makes money primarily through retail sales of baby and nursery products to consumers via two main channels: (1) its physical store network and (2) its online store (e-commerce). Revenue is generated from the sale of branded products (...
Baby Bunting Group Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 538.97M | 521.93M | 498.39M | 524.28M | 507.27M | 468.38M |
| Gross Profit | 177.90M | 209.66M | 183.65M | 159.72M | 164.00M | 144.76M |
| EBITDA | 61.29M | 56.11M | 43.28M | 65.18M | 67.05M | 62.92M |
| Net Income | 7.49M | 9.54M | 1.70M | 9.85M | 19.52M | 17.53M |
Balance Sheet | ||||||
| Total Assets | 372.21M | 340.41M | 332.20M | 343.89M | 350.67M | 301.42M |
| Cash, Cash Equivalents and Short-Term Investments | 5.17M | 12.38M | 9.53M | 5.00M | 12.24M | 10.88M |
| Total Debt | 292.94M | 166.42M | 175.41M | 175.56M | 169.18M | 135.24M |
| Total Liabilities | 253.49M | 227.76M | 231.58M | 235.95M | 235.95M | 193.66M |
| Stockholders Equity | 118.73M | 112.64M | 100.62M | 107.93M | 114.72M | 107.76M |
Cash Flow | ||||||
| Free Cash Flow | 23.81M | 38.97M | 31.45M | 34.21M | 39.75M | 24.81M |
| Operating Cash Flow | 53.70M | 51.89M | 40.06M | 43.01M | 52.37M | 36.92M |
| Investing Cash Flow | -34.31M | -12.92M | -8.60M | -8.79M | -12.62M | -12.11M |
| Financing Cash Flow | -26.18M | -36.12M | -26.93M | -41.45M | -38.39M | -27.26M |
Baby Bunting Group Ltd. Technical Analysis
Neutral
1.12
Price Trends
1.34
Negative
1.40
Negative
1.90
Negative
Market Momentum
-0.03
Negative
57.40
Neutral
70.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBN, the sentiment is Neutral. The current price of 1.12 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.34, and below the 200-day MA of 1.90, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:BBN.
Baby Bunting Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$9.01B | 18.49 | 29.31% | 5.46% | 8.60% | 4.98% | |
63 Neutral | AU$6.01B | 10.71 | 11.55% | 6.00% | 9.50% | 29.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$432.26M | -11.23 | -69.14% | 3.65% | 4.41% | -2505.17% | |
61 Neutral | AU$262.56M | 13.37 | 8.37% | 5.85% | 5.66% | -42.42% | |
58 Neutral | AU$164.90M | 23.01 | 6.48% | ― | 6.54% | 17.11% | |
55 Neutral | AU$610.70M | 76.66 | 5.66% | ― | 18.85% | 20.89% |
* Consumer Cyclical Sector Average
AU:BBN
Baby Bunting Group Ltd.
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Baby Bunting Group Ltd. Corporate Events
Baby Bunting CFO Darin Hoekman to Step Down After 12 Years
Jul 29, 2026
Baby Bunting Group Limited has announced the planned departure of Chief Financial Officer Darin Hoekman after more than 12 years with the company, including leading the finance function through its 2015 IPO. He will remain in his role until a succ...
Baby Bunting Sets Dates for FY26 Results and 2026 AGM
Jul 14, 2026
Baby Bunting Group Limited has scheduled the release of its financial results for the year ended 28 June 2026 for Friday, 14 August 2026, followed by a presentation and discussion led by CEO Mark Teperson and CFO Darin Hoekman that morning. The ti...
Baby Bunting lifts profit and margins despite late-quarter sales softness
Jun 23, 2026
Baby Bunting Group expects FY26 pro forma NPAT of $16.0 million to $17.0 million, up 32% to 40% on the prior year, on total sales of about $553 million to $555 million, roughly 6% higher. The retailer is set to lift gross margins above 41% and del...
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.