Baby Bunting Group Ltd. (BBN) AI Stock Analysis

• Market Cap: AU$404.76M
• Dividend Yield: 1.03%
• Average Volume (3M): 437.61K
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.83
• 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: 134,919,970
• 10 Day Avg. Volume: 251,032
• 30 Day Avg. Volume: 437,612
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$2.71
• Price Target Upside: -9.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: AU$2.50 ▼(-16.67% Downside)

The overall stock score is driven primarily by strong technical momentum, despite potential overvaluation concerns and financial challenges. The company's robust cash flow generation supports future investments, but high leverage and negative EBIT margins are risks that need addressing.

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 Ltd. shows solid revenue growth and improved gross margins, but faces challenges with profitability and leverage. Strong cash flow generation is a positive sign, but high debt levels and negative EBIT margins could pose risks.

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	71.72M	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: Positive
• Last Price: 3.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.26, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.19 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	73 Outperform	188.66M	12.57	16.78%	7.25%	-0.35%	-1.96%
DSK	70 Outperform	50.75M	11.53	0.00%	8.54%	8.39%	3.21%
ADH	68 Neutral	466.60M	18.07	11.41%	3.83%	3.99%	-18.35%
ABY	68 Neutral	113.22M	152.47	0.00%	―	1.58%	-65.09%
BBN	66 Neutral	AU$404.76M	42.43	8.94%	1.03%	4.72%	465.60%
KGN	55 Neutral	365.61M	-9.21	0.00%	3.81%	6.24%	-23341.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.