Baby Bunting Group Ltd. (BBN) AI Stock Analysis

• Market Cap: AU$322.46M
• Dividend Yield: 1.03%
• Average Volume (3M): 300.90K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.93
• Revenue Growth: 4.72%
• EPS Growth: 465.60%
• Country: AU
• Employees: 1,590
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 134,919,970
• 10 Day Avg. Volume: 733,540
• 30 Day Avg. Volume: 300,901
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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$2.63
• Price Target Upside: 9.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: AU$2.00 ▼(-16.67% Downside)

The overall stock score for Baby Bunting Group is heavily influenced by financial performance and valuation concerns. The company is experiencing pressure on revenue and margins, which is compounded by high leverage. Technically, the stock shows bearish momentum. The high P/E ratio indicates overvaluation, making the stock less attractive without a dividend yield.

Baby Bunting Group Ltd. Business Overview & Revenue Model

Company Description

Baby Bunting Group Ltd. (BBN) is a leading Australian retailer specializing in baby goods. Established in 1979, the company offers a comprehensive range of baby products, including nursery furniture, car seats, prams, clothing, nappies, toys, and feeding accessories. Baby Bunting operates through a network of physical stores across Australia and a robust online platform, catering to the needs of new and expectant parents.

How the Company Makes Money

Baby Bunting Group Ltd. makes money primarily through the sale of its wide array of baby products both in-store and online. The company benefits from a diverse product range that attracts a large customer base, allowing it to capitalize on various segments within the baby goods market. Revenue streams include direct sales to consumers, private label products, and exclusive brand partnerships. Additionally, Baby Bunting's loyalty programs and customer engagement strategies contribute to repeat purchases and customer retention, enhancing its revenue potential. The company also leverages economies of scale and efficient supply chain management to optimize profitability.

Baby Bunting Group Ltd. Financial Statement Overview

Summary

Baby Bunting Group is facing challenges with declining revenue and profitability, as well as high leverage indicated by a debt-to-equity ratio of 1.74. However, strong cash flow provides 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
EBITDA	43.28M	65.18M	71.72M	62.92M	55.93M
Net Income	1.70M	9.85M	19.52M	17.53M	9.99M
Balance Sheet
Total Assets	332.20M	343.89M	350.67M	301.42M	258.26M
Cash, Cash Equivalents and Short-Term Investments	9.53M	5.00M	12.24M	10.88M	13.34M
Total Debt	175.41M	175.56M	169.18M	135.24M	105.98M
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: 2.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 2.4 is above the 20-day moving average (MA) of 1.95, above the 50-day MA of 1.85, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 70.44 is Negative, neither overbought nor oversold. The STOCH value of 79.46 is Neutral, 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
SSG	79 Outperform	AU$199.79M	13.45	16.06%	6.76%	-0.69%	-6.67%
DSK	70 Outperform	AU$58.53M	10.16	13.17%	6.64%	5.42%	-8.87%
ABY	68 Neutral	AU$77.05M	42.75	4.65%	―	5.51%	244.64%
ADH	67 Neutral	€385.30M	11.60	14.57%	5.95%	0.49%	-3.64%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
BBN	56 Neutral	AU$322.46M	34.37	8.94%	1.03%	4.72%	465.60%
KGN	55 Neutral	$400.24M	231.61	1.28%	3.65%	4.67%	-72.98%

Baby Bunting Group Ltd. Corporate Events

Baby Bunting Announces FY25 Results Release and AGM Dates

Baby Bunting Group Ltd. has announced the release of its financial results for the fiscal year ending 29 June 2025, scheduled for 15 August 2025. The announcement will be followed by a presentation led by CEO Mark Teperson and CFO Darin Hoekman. Additionally, the company has set its 2025 Annual General Meeting for 14 October 2025, with director nominations closing on 12 August 2025. These events are significant for stakeholders as they provide insights into the company’s financial health and strategic direction.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$1.95 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Issues 1 Million Share Rights in Employee Incentive Scheme

Baby Bunting Group Ltd. announced the issuance of 1,000,000 unquoted share rights as part of an employee incentive scheme. This move is likely aimed at motivating and retaining employees, which could strengthen the company’s operational capabilities and enhance its competitive positioning in the retail market.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$1.70 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Strengthens Board with New Director Appointment

Baby Bunting Group Ltd. has appointed Debra Singh as an independent non-executive director and Chair of the Remuneration Committee, effective 21 May 2025. Singh’s extensive experience in retail operations and leadership roles is expected to enhance the board’s strategic oversight during a crucial growth phase, aligning with the company’s new strategy and expansion plans.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$1.70 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.