tiprankstipranks
Baby Bunting Group Ltd. (AU:BBN)
ASX:BBN
Australian Market

Baby Bunting Group Ltd. (BBN) AI Stock Analysis

Compare
32 Followers

Top Page

AU:BBN

Baby Bunting Group Ltd.

(Sydney:BBN)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
AU$1.50
▼(-39.02% Downside)
Action:ReiteratedDate:02/26/26
The score is held up by improving gross margins and strong free cash flow growth, but is weighed down by weak/negative operating profitability and high leverage. Technically, the stock remains in a clear downtrend, and valuation (P/E ~34) looks less compelling given current earnings quality.
Positive Factors
Gross margin expansion
A ~10pp rise in gross margin signals better sourcing, pricing or mix and materially increases durability of profits per sale. Sustained higher gross margins provide a structural buffer against cost inflation, support reinvestment in stores and online, and improve long-term cash generation.
Negative Factors
Weak operating profitability
Very low net margins and negative EBIT point to structural cost or operating inefficiencies that limit retained earnings. Persistently weak operating profitability constrains reinvestment, makes the business sensitive to margin pressure, and reduces ability to scale profitably.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
A ~10pp rise in gross margin signals better sourcing, pricing or mix and materially increases durability of profits per sale. Sustained higher gross margins provide a structural buffer against cost inflation, support reinvestment in stores and online, and improve long-term cash generation.
Read all positive factors

Baby Bunting Group Ltd. (BBN) vs. iShares MSCI Australia ETF (EWA)

Baby Bunting Group Ltd. Business Overview & Revenue Model

Company Description
Baby Bunting Group Limited, together with its subsidiaries, operates as specialty retailer of maternity and baby goods in Australia. The company's principal product categories include prams, cots and nursery furniture, car safety, toys, babywear, ...
How the Company Makes Money
Baby Bunting primarily makes money by retailing baby and nursery products to consumers, generating revenue from the sale of merchandise through its network of stores and its e-commerce platform. Its key revenue stream is product sales across major...

Baby Bunting Group Ltd. Financial Statement Overview

Summary
Revenue growth and improved gross margin (to 40.17%) support the score, and free cash flow growth (+20.14%) is a key positive. Offsetting this are weak profitability (net margin 1.83%), negative EBIT margins, and elevated leverage (debt-to-equity 1.48).
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue538.97M521.93M498.39M524.28M507.27M468.38M
Gross Profit177.90M209.66M183.65M159.72M164.00M144.76M
EBITDA61.29M56.11M43.28M65.18M67.05M62.92M
Net Income7.49M9.54M1.70M9.85M19.52M17.53M
Balance Sheet
Total Assets372.21M340.41M332.20M343.89M350.67M301.42M
Cash, Cash Equivalents and Short-Term Investments5.17M12.38M9.53M5.00M12.24M10.88M
Total Debt292.94M166.42M175.41M175.56M169.18M135.24M
Total Liabilities253.49M227.76M231.58M235.95M235.95M193.66M
Stockholders Equity118.73M112.64M100.62M107.93M114.72M107.76M
Cash Flow
Free Cash Flow23.81M38.97M31.45M34.21M39.75M24.81M
Operating Cash Flow53.70M51.89M40.06M43.01M52.37M36.92M
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

Technical Analysis Sentiment
Negative
Last Price2.46
Price Trends
50DMA
2.10
Negative
100DMA
2.38
Negative
200DMA
2.38
Negative
Market Momentum
MACD
-0.15
Positive
RSI
26.57
Positive
STOCH
21.82
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 2.46 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 2.10, and above the 200-day MA of 2.38, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 26.57 is Positive, neither overbought nor oversold. The STOCH value of 21.82 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
AU$171.63M3.9616.49%6.98%-0.35%-1.96%
65
Neutral
AU$49.19M1.1913.53%9.03%8.39%3.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
AU$353.50M11.07-69.14%4.00%6.24%-23341.18%
61
Neutral
AU$246.50M6.108.37%5.85%3.99%-18.35%
59
Neutral
AU$32.42M157.840.80%1.58%-65.09%
54
Neutral
AU$215.29M46.896.48%4.72%465.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BBN
Baby Bunting Group Ltd.
1.59
-0.31
-16.32%
AU:KGN
Kogan.com
3.67
-0.96
-20.70%
AU:ADH
Adairs Ltd.
1.39
-0.77
-35.53%
AU:DSK
Dusk Group Ltd.
0.79
-0.20
-20.60%
AU:ABY
Adore Beauty Group Ltd.
0.35
-0.43
-55.19%
AU:SSG
Shaver Shop Group Ltd.
1.31
0.12
10.36%

Baby Bunting Group Ltd. Corporate Events

Baby Bunting Sets Date for 1H FY26 Results Release and Investor Briefing
Jan 21, 2026
Baby Bunting Group Limited has announced it will release its financial results for the half-year ended 29 December 2025 on Tuesday, 17 February 2026. Following the results announcement, CEO Mark Teperson and CFO Darin Hoekman will host an investor...
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.Date of analysis: Feb 26, 2026