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boohoo group Plc Unsponsored ADR (BHOOY)
OTHER OTC:BHOOY
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boohoo group
(OTC:BHOOY)
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Select Model
Rating:39Underperform
Price Target:
$3.00
▼(-2.28% Downside)
The overall stock score for boohoo group is low due to significant financial challenges, including declining revenue, high leverage, and cash flow difficulties. Technical analysis shows bearish signals, and valuation metrics are unfavorable with a negative P/E ratio. These factors collectively contribute to a low stock score.
Positive Factors
Business Model Adaptability
Boohoo's ability to quickly adapt to fashion trends through digital platforms ensures it remains relevant to its young consumer base, supporting long-term engagement and sales.
Influencer Marketing
The strategic use of influencer marketing enhances brand visibility and consumer reach, strengthening Boohoo's competitive position in the fast fashion industry.
Efficient Order Fulfillment
Strong logistics partnerships enable Boohoo to maintain a reliable supply chain, crucial for meeting consumer demand and sustaining operational efficiency.
Negative Factors
Declining Revenue
Significant revenue decline indicates challenges in maintaining market share and consumer interest, potentially impacting long-term financial health.
High Leverage
Increased leverage heightens financial risk, limiting Boohoo's ability to invest in growth opportunities and manage economic downturns.
Negative Cash Flow
Negative cash flow indicates operational inefficiencies and potential liquidity issues, challenging Boohoo's ability to sustain operations and fund future growth.
boohoo group (BHOOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.90M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth-64.01%
EPS Growth26.70%
CountryUS
Employees5,079
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.29
Shares Outstanding69,874,910
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)92.11
Price to Sales (P/S)0.45
P/FCF Ratio-10.57
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.58
Enterprise Value/Ebitda-2.95
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
boohoo group Business Overview & Revenue Model
Company DescriptionBoohoo Group PLC (BHOOY) is a UK-based online fashion retailer that specializes in providing trendy and affordable clothing, footwear, accessories, and beauty products for young consumers. Founded in 2006, the company operates several brands under its umbrella, including Boohoo, PrettyLittleThing, and Nasty Gal, targeting various segments of the fast fashion market. Boohoo focuses on leveraging digital marketing and social media to engage its audience, offering a wide range of styles that are frequently updated to keep up with the latest trends.
How the Company Makes MoneyBoohoo Group generates revenue primarily through direct online sales of its fashion products. The company employs a direct-to-consumer model, allowing it to maintain higher margins by selling its products through its own e-commerce platforms rather than relying on third-party retailers. Key revenue streams include sales from its various brands, which cater to different demographics and fashion preferences. Additionally, Boohoo benefits from partnerships with influencers and social media campaigns that drive traffic to its websites, enhancing brand visibility and product sales. The company also focuses on rapid inventory turnover and efficient supply chain management to minimize costs and maximize profitability.
boohoo group Earnings Call Summary
Earnings Call Date:May 08, 2024
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in core brands and operational efficiencies, particularly with Debenhams' marketplace and improved EBITDA margins. However, it also acknowledged challenges such as revenue decline and issues in the U.S. market. The sentiment is cautiously optimistic with a positive outlook for growth.Q4-2024 Updates
Positive Updates
Core Brands Performance
Despite a headline revenue decline of 17%, the core brands showed a significant improvement with only a 4% decline in H2, indicating a positive turnaround and potential for future growth.
Debenhams Marketplace Growth
The Debenhams marketplace saw rapid growth, with over 3,500 brands onboarded by the end of FY '24, contributing to more than 50% of sales through the third-party model.
Improved EBITDA Margin
EBITDA margin increased to 4% despite revenue challenges, driven by cost management and operational efficiencies.
Successful CapEx Projects
Completion of significant CapEx projects in Sheffield and the U.S. improved efficiency, with Sheffield automation reducing full-time headcount by over 80%.
Negative Updates
Revenue Decline
Overall net revenue declined by 17% due to ongoing market headwinds, including weakened consumer demand and elevated costs.
Challenges in U.S. Market
The launch of the U.S. distribution center faced challenges, with slower than expected performance and difficulties in adapting to the market.
Increased Net Debt
Net debt increased to GBP 95 million at the end of the year due to CapEx investments and higher inventory levels with the U.S. warehouse opening.
Company Guidance
The earnings call for BOO.L provided comprehensive guidance on the company's financial performance and strategic direction for the fiscal year 2024. The executives highlighted a 17% decline in headline revenue but noted stronger performance in core brands, which are on an accelerated path towards growth. The company successfully increased its EBITDA margin to 4% and completed significant capital expenditure projects, enhancing capacity and efficiency. The focus remains on achieving GBP 125 million in annualized savings by FY '25, with a rigorous cost assessment already underway. BOO.L's strategic shift to a marketplace model with Debenhams is yielding positive results, as over 50% of sales now come from third-party brands, contributing to a 13% decline in GMV, less than the net revenue decline. The company is poised to benefit from improving consumer demand and cost deflation in FY '25, with a targeted return to GMV growth and improvements in EBITDA margins, further supported by a strong balance sheet and reduced CapEx spend.boohoo group Financial Statement Overview
Summary
The financial performance of boohoo group is concerning, with significant declines in revenue and profitability, high leverage, and cash flow challenges. The income statement shows a sharp revenue decline and negative net profit margins. The balance sheet reveals high financial risk with a dramatic increase in the debt-to-equity ratio. The cash flow statement highlights negative free cash flow growth and operating cash flow, indicating cash flow difficulties.Income Statement
The income statement shows a significant decline in revenue and profitability over the years. The company has experienced a sharp revenue decline of 41.53% in the latest year, and net profit margins have turned negative, indicating substantial losses. Gross profit margins have also decreased, reflecting challenges in maintaining cost efficiency. Overall, the income statement reflects a struggling financial performance with declining revenue and profitability.35
Negative
Balance Sheet
The balance sheet reveals a concerning increase in leverage, with the debt-to-equity ratio rising dramatically to 62.33 in the latest year. This indicates a high level of financial risk. The return on equity is negative, highlighting the company's inability to generate profits from its equity base. The equity ratio has also decreased, suggesting reduced financial stability. Overall, the balance sheet indicates high leverage and financial instability.30
Negative
Cash Flow
The cash flow statement shows negative free cash flow growth and a negative operating cash flow, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow performance is weak. The operating cash flow to net income ratio is negative, further highlighting cash flow difficulties. Overall, the cash flow statement reflects significant cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 566.00M | 790.30M | 1.46B | 1.77B | 1.98B | 1.75B |
| Gross Profit | 250.37M | 389.70M | 756.10M | 895.20M | 1.04B | 945.20M |
| EBITDA | -134.24M | -184.90M | -53.70M | -10.80M | 63.20M | 153.90M |
| Net Income | -258.70M | -326.40M | -137.80M | -75.60M | -4.00M | 90.70M |
Balance Sheet | ||||||
| Total Assets | 469.90M | 525.90M | 1.08B | 1.23B | 998.40M | 775.90M |
| Cash, Cash Equivalents and Short-Term Investments | 30.40M | 44.70M | 230.00M | 332.00M | 115.50M | 293.10M |
| Total Debt | 217.20M | 243.10M | 446.90M | 463.60M | 151.90M | 18.30M |
| Total Liabilities | 469.80M | 522.00M | 795.70M | 825.70M | 534.10M | 303.40M |
| Stockholders Equity | 100.00K | 3.90M | 279.70M | 400.00M | 464.30M | 472.50M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -34.00M | -62.90M | 45.50M | -251.20M | 40.10M |
| Operating Cash Flow | -33.84M | -12.70M | 1.90M | 136.70M | 10.30M | 162.80M |
| Investing Cash Flow | 2.26M | 32.20M | -54.80M | -103.30M | -261.50M | -283.40M |
| Financing Cash Flow | 12.66M | -202.90M | -48.00M | 196.20M | 76.50M | 151.20M |
boohoo group Technical Analysis
Positive
3.07
Price Trends
4.16
Positive
4.00
Positive
4.96
Positive
Market Momentum
0.70
Positive
57.20
Neutral
0.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHOOY, the sentiment is Positive. The current price of 3.07 is below the 20-day moving average (MA) of 5.47, below the 50-day MA of 4.16, and below the 200-day MA of 4.96, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 0.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHOOY.
boohoo group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.00B | 35.61 | 12.19% | ― | 9.24% | 35.68% | |
70 Outperform | $41.38B | 9.75 | 13.68% | 3.43% | 16.54% | -3.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $5.31B | 36.95 | ― | ― | 1.98% | -20.98% | |
55 Neutral | $963.59M | -24.48 | -35.37% | ― | -4.90% | 50.77% | |
45 Neutral | $1.48B | -11.62 | -102.25% | ― | -4.38% | ― | |
39 Underperform | $376.90M | -1.48 | -167.33% | ― | -64.01% | 26.70% |
* Consumer Cyclical Sector Average
BHOOY
boohoo group
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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.