Baby Bunting Group Ltd. (BBN) AI Stock Analysis

• Market Cap: AU$248.93M
• Dividend Yield: 1.03%
• Average Volume (3M): 116.02K
• Price to Earnings (P/E): 86.0
• Beta (1Y): 1.61
• Revenue Growth: -2.62%
• EPS Growth: -70.47%
• Country: AU
• Employees: 1,590
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): 0.03
• Shares Outstanding: 134,919,970
• 10 Day Avg. Volume: 97,235
• 30 Day Avg. Volume: 116,022
• PEG Ratio: -0.37
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.40
• 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$2.09
• Price Target Upside: 13.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: AU$2.00 ▲(8.70%Upside)

The overall score reflects the financial challenges faced by Baby Bunting Group, including declining profitability and high leverage, balanced by strong cash flow. Technical indicators suggest moderate bullish momentum, but a high P/E ratio implies potential overvaluation risk.

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, feeding, nappies, and Manchester and associated accessories. Its products primarily cater to parents with children from newborn to three years of age, and parents-to-be. The company operates a network of 65 stores in Australia; and one store in New Zealand, as well as sells products through babybunting.com.au, an online store. Baby Bunting Group Limited was founded in 1979 and is based in Dandenong, Australia.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	496.90M	498.39M	524.28M	507.27M	468.38M	405.17M
Gross Profit	188.81M	183.65M	159.72M	164.00M	144.76M	121.57M
EBITDA	25.06M	43.28M	65.18M	71.72M	62.92M	55.93M
Net Income	6.21M	1.70M	9.85M	19.52M	17.53M	9.99M
Balance Sheet
Total Assets	334.31M	332.20M	343.89M	350.67M	301.42M	258.26M
Cash, Cash Equivalents and Short-Term Investments	11.97M	9.53M	5.00M	12.24M	10.88M	13.34M
Total Debt	166.64M	175.41M	175.56M	169.18M	135.24M	105.98M
Total Liabilities	228.62M	231.58M	235.95M	235.95M	193.66M	164.89M
Stockholders Equity	105.69M	100.62M	107.93M	114.72M	107.76M	93.37M
Cash Flow
Free Cash Flow	32.44M	31.45M	34.21M	39.75M	24.81M	41.53M
Operating Cash Flow	37.55M	40.06M	43.01M	52.37M	36.92M	49.85M
Investing Cash Flow	-8.03M	-8.60M	-8.79M	-12.62M	-12.11M	-8.32M
Financing Cash Flow	-24.30M	-26.93M	-41.45M	-38.39M	-27.26M	-34.03M

Baby Bunting Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1.84 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.77, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.15 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	80 Outperform	AU$178.83M	11.99	16.06%	7.03%	-0.69%	-6.67%
DSK	68 Neutral	AU$52.93M	9.46	13.17%	9.41%	5.42%	-8.87%
ABY	68 Neutral	AU$66.71M	37.56	4.65%	―	5.51%	244.64%
ADH	67 Neutral	AU$378.23M	11.55	14.57%	6.07%	0.49%	-3.64%
Sector *	63 Neutral	$16.70B	11.33	-6.96%	2.94%	1.73%	-24.85%
BBN	62 Neutral	AU$248.93M	86.05	2.78%	1.03%	-2.62%	-70.47%
KGN	52 Neutral	AU$392.29M	229.89	1.28%	3.54%	4.67%	-72.98%

Baby Bunting Group Ltd. Corporate Events

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.

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.