Baby Bunting Group Ltd. (BBN) AI Stock Analysis

• Market Cap: AU$244.88M
• Dividend Yield: 1.03%
• Average Volume (3M): 205.66K
• Price to Earnings (P/E): 84.4
• Beta (1Y): 1.72
• Revenue Growth: -2.62%
• EPS Growth: -70.47%
• Country: AU
• Employees: 1,590
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 0.02
• Shares Outstanding: 134,919,970
• 10 Day Avg. Volume: 316,945
• 30 Day Avg. Volume: 205,657
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$2.04
• Price Target Upside: 12.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

The overall score of 61 reflects the company's current financial and market situation. While cash flows remain robust, significant pressure on revenue and profitability, combined with high leverage, poses risks. Technical analysis shows some short-term positive momentum, but caution is advised given the overvaluation indicated by the high P/E ratio. The lack of earnings call and corporate events data leaves the focus on existing financials and market trends.

Baby Bunting Group Ltd. Business Overview & Revenue Model

Company Description

Baby Bunting Group Ltd. (BBN) is a leading specialty retailer operating in the baby goods sector in Australia. Established in 1979, the company offers a wide range of products catering to families with infants and young children, including nursery furniture, car seats, prams, clothing, feeding, and safety items. Baby Bunting operates both physical stores across Australia and an online platform, providing a comprehensive selection of essential items for expecting and new parents.

How the Company Makes Money

Baby Bunting Group Ltd. generates revenue primarily through the retail sale of baby and maternity products via its network of physical stores and online e-commerce platform. The company's key revenue streams include the sale of branded and private-label products, which range from necessities like diapers and formula to larger items such as cots and strollers. Additionally, Baby Bunting benefits from exclusive distribution arrangements and strategic partnerships with suppliers, allowing them to offer unique products and competitive pricing. The company's loyalty program and gift registry services also contribute to customer retention and repeat sales, further bolstering its revenue.

Baby Bunting Group Ltd. Financial Statement Overview

Summary

Baby Bunting Group is experiencing pressures in revenue and profitability, reflected in declining margins and growth rates. The balance sheet indicates high leverage, which poses a risk if income does not improve. Despite these challenges, the cash flow situation remains relatively strong, providing a buffer against short-term financial volatility.

Income Statement

Baby Bunting Group has shown a decline in revenue over the past year, with a decrease from AUD 524.3 million to AUD 498.4 million, marking a negative revenue growth rate of -4.94%. Gross profit margin has decreased to 29.12% from 30.46%, indicating reduced profitability at the gross level. The net profit margin has also declined to 0.34% from 1.88%, reflecting a significant drop in net income. EBIT and EBITDA margins have contracted, suggesting tighter operating conditions and reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.74, indicating significant leverage. Return on equity (ROE) has decreased to 1.69% from 9.13%, largely due to lower net income. However, the equity ratio remains stable at around 30.28%, indicating a consistent proportion of equity financing relative to assets.

Cash Flow

Operating cash flow has slightly decreased but remains strong compared to net income, resulting in an operating cash flow to net income ratio of 23.62. Free cash flow to net income remains robust at 185.45%, suggesting healthy cash flow generation relative to profits. However, free cash flow has decreased from the previous year, indicating potential challenges in maintaining cash generation.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
498.39M	524.28M	507.27M	468.38M	405.17M
	Gross Profit
183.65M	159.72M	164.00M	144.76M	121.57M
	EBIT
-24.16M	28.71M	39.96M	34.02M	30.64M
	EBITDA
43.28M	65.18M	71.72M	62.92M	55.93M
	Net Income Common Stockholders
1.70M	9.85M	19.52M	17.53M	9.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.53M	5.00M	12.24M	10.88M	13.34M
	Total Assets
332.20M	343.89M	350.67M	301.42M	258.26M
	Total Debt
175.41M	175.56M	169.18M	135.24M	105.98M
	Net Debt
165.89M	170.56M	156.94M	124.36M	92.64M
	Total Liabilities
231.58M	235.95M	235.95M	193.66M	164.89M
	Stockholders Equity
100.62M	107.93M	114.72M	107.76M	93.37M
Cash Flow		Free Cash Flow
31.45M	34.21M	39.75M	24.81M	41.53M
	Operating Cash Flow
40.06M	43.01M	52.37M	36.92M	49.85M
	Investing Cash Flow
-8.60M	-8.79M	-12.62M	-12.11M	-8.32M
	Financing Cash Flow
-26.93M	-41.45M	-38.39M	-27.26M	-34.03M

Baby Bunting Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBN, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.69, and above the 200-day MA of 1.70, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
PMV	76 Outperform	AU$3.37B	17.00	14.01%	6.30%	-27.48%	-27.96%
SUL	73 Outperform	AU$2.99B	13.13	17.52%	5.21%	2.56%	-13.62%
HVN	71 Outperform	$6.65B	15.41	9.58%	4.60%	1.77%	15.57%
MYR	66 Neutral	€1.28B	26.52	8.55%	5.16%	-2.43%	-49.64%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
BBN	61 Neutral	AU$244.88M	84.42	2.78%	1.03%	-2.62%	-70.47%

Baby Bunting Group Ltd. Corporate Events

Baby Bunting Unveils ‘Store of the Future’ Vision

Baby Bunting Group Ltd. presented its ‘Store of the Future’ concept during an investor day on May 1, 2025. The presentation outlined the company’s strategic vision for enhancing its retail operations, potentially impacting its market positioning and stakeholder interests. The company emphasized the importance of adapting to future market trends and consumer needs, although it acknowledged the inherent risks and uncertainties associated with forward-looking statements.

Baby Bunting Unveils ‘Store of the Future’ Amid Positive Sales Growth

Baby Bunting Group Ltd. has opened its ‘Store of the Future’ in Maribyrnong, Melbourne, designed to enhance customer experience and drive sales. The store’s innovative format has received positive feedback and is performing above expectations, with plans to use this model for future store developments. The company reports a 2.9% year-to-date increase in comparable store sales and a gross margin of 40%, reflecting improved sales momentum and strategic initiatives. Baby Bunting has adjusted its FY25 NPAT guidance upwards, anticipating continued growth supported by new product ranges, optimized pricing, and targeted marketing, with capital expenditure fully funded through operating cash flow.

Perpetual Limited Acquires Significant Stake in Baby Bunting

Perpetual Limited has become a substantial holder in Baby Bunting Group Limited, acquiring a 5.058% voting power with 6,824,184 ordinary shares. This acquisition reflects a significant investment in Baby Bunting, potentially impacting its market dynamics and signaling confidence in the company’s future prospects.

Macquarie Group Corrects Substantial Holder Notice for Baby Bunting

Baby Bunting Group Ltd. received a notice from Macquarie Group Limited correcting a previous filing error. The Macquarie Group clarified that they are not a substantial holder of Baby Bunting Group Ltd. shares, as previously indicated. This correction may impact stakeholders’ understanding of the company’s shareholder structure.

Macquarie Group Becomes Substantial Holder in Baby Bunting

Macquarie Group Limited has become a substantial holder in Baby Bunting Group Ltd., a company known for its retail operations in baby products. This development signifies Macquarie’s increased influence in the company, with a voting power of 16.27%, which could impact Baby Bunting’s strategic decisions and market positioning.

Director Increases Stake in Baby Bunting Group

Stephen Roche, a director at Baby Bunting Group Limited, has increased his direct interest in the company by acquiring 17,000 fully paid ordinary shares through an on-market trade. This change reflects a growing confidence in the company’s prospects, potentially influencing investor perception and stakeholder interest.

Baby Bunting Group Ltd. Releases FY25 Half-Year Financial Results

Baby Bunting Group Ltd. presented its half-year financial results for FY25, highlighting the use of pro forma financial information to better evaluate company performance. While the release included important financial metrics and insights into operational adjustments, it also cautioned stakeholders about the inherent risks and uncertainties associated with forward-looking statements, emphasizing that past performance may not indicate future outcomes.

Baby Bunting Reports Strong Growth in 1H FY25

Baby Bunting Group Ltd. reported a significant improvement in its financial performance for the first half of the fiscal year 2025, with a 37% increase in Pro Forma NPAT to $4.8 million and a 2.4% rise in total sales to $254.4 million. The company achieved a gross margin of 39.8%, driven by strategic pricing and supply chain initiatives, and plans further growth through new store formats and a continued focus on exclusive product offerings. Despite the challenging macroeconomic environment, the company is optimistic about achieving its FY25 target, benefiting from inventory management and cost efficiencies.

Baby Bunting Reports Strong Half-Yearly Profits but Withholds Dividends

Baby Bunting Group Ltd. reported a 2.4% increase in revenue for the half-year ending December 2024 compared to the same period in 2023, with statutory net profits rising by 45.3% and pro forma net profits increasing by 36.8%. Despite these positive financial results, the company decided not to pay any interim dividends for FY2025, possibly indicating a strategic reinvestment approach or caution amid broader industry challenges.