Baby Bunting Group Ltd. (BBN) AI Stock Analysis

• Market Cap: AU$371.00M
• Dividend Yield: N/A
• Average Volume (3M): 315.55K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 1.66
• Revenue Growth: 4.72%
• EPS Growth: 465.60%
• Country: AU
• Employees: 1,590
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 135,400,730
• 10 Day Avg. Volume: 441,528
• 30 Day Avg. Volume: 315,554
• PEG Ratio: 0.02
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 6.36
• 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$3.10
• Price Target Upside: 21.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: AU$3.00 ▲(17.19% Upside)

The overall stock score of 56 reflects the company's solid revenue growth and cash flow generation, which are offset by challenges in profitability and high leverage. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio and no dividend yield. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to invest in growth opportunities and manage debt, ensuring financial stability.

Gross Margin Improvement

Improved gross margins reflect effective cost management, which can drive profitability and competitive advantage over time.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's flexibility to respond to market changes and invest in growth.

Negative EBIT Margins

Negative EBIT margins indicate operational inefficiencies, which could hinder profitability and long-term business health if not addressed.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which may affect the company's ability to reinvest in growth and compete effectively.

Baby Bunting Group Ltd. Business Overview & Revenue Model

Company Description

Baby Bunting Group Ltd. (BBN) is a leading retailer in Australia specializing in baby products and parenting essentials. The company operates both physical retail stores and an online platform, offering a wide range of products including nursery furniture, baby clothing, car seats, strollers, and feeding accessories. With a commitment to providing high-quality products and expert advice, Baby Bunting serves new and expectant parents across the country.

How the Company Makes Money

Baby Bunting generates revenue primarily through the sale of baby and parenting products in its retail stores and online. The company employs a multi-channel retail strategy, allowing customers to shop in-store or online, which broadens its customer reach. Key revenue streams include direct sales of merchandise, offering exclusive brands, and possibly online subscriptions for baby-related services. Additionally, partnerships with suppliers and manufacturers enable Baby Bunting to negotiate favorable terms, enhancing profit margins. Seasonal promotions and loyalty programs also contribute to revenue by encouraging repeat business among customers.

Baby Bunting Group Ltd. Financial Statement Overview

Summary

Baby Bunting Group Ltd. demonstrates solid revenue growth and improved gross margins, but faces challenges with profitability and leverage. The company shows strong cash flow generation, which is a positive sign for future investments and debt management. However, the high debt levels and negative EBIT margins could pose risks if not addressed.

Income Statement

The company has shown a consistent revenue growth trend over the years, with a recent 5.04% increase. Gross profit margins have improved from 30.47% to 40.17%, indicating better cost management. However, the net profit margin remains low at 1.83%, and EBIT margins have turned negative, suggesting challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.48, indicating significant leverage, which could pose risks in a volatile market. Return on equity has decreased to 8.47%, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has grown by 20.14%, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.53, indicating decent cash conversion efficiency. However, the free cash flow to net income ratio has slightly decreased, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	521.93M	521.93M	498.39M	524.28M	507.27M	468.38M
Gross Profit	189.50M	209.66M	183.65M	159.72M	164.00M	144.76M
EBITDA	47.16M	56.11M	43.28M	65.18M	67.05M	62.92M
Net Income	9.54M	9.54M	1.70M	9.85M	19.52M	17.53M
Balance Sheet
Total Assets	340.41M	340.41M	332.20M	343.89M	350.67M	301.42M
Cash, Cash Equivalents and Short-Term Investments	12.38M	12.38M	9.53M	5.00M	12.24M	10.88M
Total Debt	166.42M	166.42M	175.41M	175.56M	169.18M	135.24M
Total Liabilities	227.76M	227.76M	231.58M	235.95M	235.95M	193.66M
Stockholders Equity	112.64M	112.64M	100.62M	107.93M	114.72M	107.76M
Cash Flow
Free Cash Flow	43.39M	38.97M	31.45M	34.21M	39.75M	24.81M
Operating Cash Flow	51.89M	51.89M	40.06M	43.01M	52.37M	36.92M
Investing Cash Flow	-12.92M	-12.92M	-8.60M	-8.79M	-12.62M	-12.11M
Financing Cash Flow	-36.12M	-36.12M	-26.93M	-41.45M	-38.39M	-27.26M

Baby Bunting Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 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:BBN, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.82, and above the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 21.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BBN.

Baby Bunting Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABY	66 Neutral	AU$106.17M	139.51	1.90%	―	1.58%	-65.09%
DSK	66 Neutral	AU$55.73M	12.66	12.71%	8.97%	8.39%	3.21%
SSG	65 Neutral	AU$182.11M	12.13	16.91%	6.87%	-0.35%	-1.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ADH	58 Neutral	€352.01M	13.59	11.70%	5.98%	3.99%	-18.35%
BBN	56 Neutral	AU$371.00M	38.76	8.94%	―	4.72%	465.60%
KGN	47 Neutral	$337.80M	―	-40.52%	4.26%	6.24%	-23341.18%

Baby Bunting Group Ltd. Corporate Events

Baby Bunting Announces Director’s Interest Change

Baby Bunting Group Ltd. announced a change in the director’s interest notice, specifically involving Mark Teperson. On October 30, 2025, Teperson was granted 417,908 share rights as part of the deferred component of the FY25 Short Term Incentive payment, which was previously approved by shareholders. This change reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting the company’s governance and stakeholder confidence.

Baby Bunting Group Ltd. Issues Unquoted Share Rights to Boost Employee Engagement

Baby Bunting Group Ltd. announced the issuance of 1,443,173 unquoted share rights as part of an employee incentive scheme. This move is aimed at enhancing employee engagement and aligning their interests with the company’s growth objectives, potentially impacting the company’s operational dynamics and stakeholder relations positively.

Director’s Share Acquisition Signals Confidence in Baby Bunting’s Market Position

The recent announcement from Baby Bunting Group Ltd. details a change in the director’s interest, specifically for Fran Ereira, who acquired 2,433 fully paid ordinary shares through an on-market trade, increasing her total holdings to 40,147 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could reassure stakeholders and investors about the company’s market position.

Baby Bunting Group Ltd. Announces Successful AGM Results

Baby Bunting Group Ltd. announced the results of its 2025 Annual General Meeting, with all resolutions passed. The successful resolutions, including the re-election of directors and approval of remuneration reports, indicate strong shareholder support and are likely to positively impact the company’s governance and strategic direction.

Baby Bunting Reports Steady Growth and Expands ‘Store of the Future’ Initiative

Baby Bunting Group Ltd. has reported a year-to-date total sales growth of 3.5% and comparable store sales growth of 2.2%, with New Zealand stores showing a 13% growth. The company is expanding its ‘Store of the Future’ initiative, planning several refurbishments and new store openings, including large format and small pilot stores. The FY26 earnings guidance remains unchanged, with expectations of a 4%-6% growth in comparable store sales and a gross margin of 41%. The company anticipates some sales pattern disruptions due to refurbishments but remains optimistic about post-refurbishment sales growth.

Baby Bunting Announces Director’s Interest Change

Baby Bunting Group Ltd. announced a change in the director’s interest, specifically concerning Mark Teperson, who has adjusted his holdings of the company’s securities. The change involved the conversion of 155,763 rights into fully paid ordinary shares, reflecting a strategic move in Teperson’s investment in the company. This adjustment in director’s interest is part of the company’s ongoing governance and compliance with ASX regulations, ensuring transparency and alignment with shareholder interests.

Baby Bunting Announces Quotation of New Securities

Baby Bunting Group Ltd. has announced the quotation of 480,763 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move, part of an employee incentive scheme, is expected to enhance the company’s market presence and potentially improve liquidity, benefiting stakeholders by aligning employee interests with company performance.

Director Increases Stake in Baby Bunting Group

Baby Bunting Group Limited announced a change in the director’s interest, with Stephen Roche acquiring an additional 22,000 fully paid ordinary shares through on-market trades, bringing his total to 100,000 shares. This acquisition reflects a significant increase in personal investment by the director, potentially signaling confidence in the company’s future performance and stability.