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boohoo group Plc Unsponsored ADR (BHOOY)
:BHOOY
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boohoo group
(OTC:BHOOY)
Select Model
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Rating:40Underperform
Price Target:
$3.50
▲(0.00% Upside)
The overall stock score is heavily influenced by the company's poor financial performance and weak technical indicators. The negative valuation metrics further contribute to the low score. The absence of earnings call data and corporate events means these factors do not impact the score.
boohoo group (BHOOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$219.70M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-44.95%
EPS Growth-124.54%
CountryUS
Employees5,079
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-3.69
Shares Outstanding69,871,210
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 Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
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 is a UK-based online fashion retailer that specializes in trendy apparel, footwear, accessories, and beauty products targeted primarily at young consumers. Founded in 2006, the company operates several brands under its umbrella, including Boohoo, PrettyLittleThing, and Nasty Gal, offering a wide range of fast fashion items. Boohoo Group focuses on leveraging digital marketing and social media to engage with its customer base, providing a seamless online shopping experience.
How the Company Makes MoneyBoohoo Group generates revenue primarily through direct online sales of its fashion products. The company's business model is based on fast fashion, which involves quickly producing and distributing new designs in response to the latest trends, allowing it to capitalize on current consumer interests. Key revenue streams include sales from its various brand websites, with an emphasis on high-volume, low-cost items that appeal to its target demographic. Additionally, the company benefits from the integration of influencer marketing and social media campaigns, which drive traffic to its platforms. Partnerships with logistics and shipping companies also play a crucial role in ensuring efficient order fulfillment, while collaborations with popular brands and influencers can enhance visibility and sales. Overall, Boohoo Group's ability to adapt to changing fashion trends and consumer preferences is a significant factor contributing to its earnings.
boohoo group Earnings Call Summary
Earnings Call Date:May 08, 2024
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 01, 2025
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 is severely challenged, with declining revenue, negative profitability, high leverage, and cash flow difficulties. The income statement, balance sheet, and cash flow statement all reflect significant financial instability.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 | 1.35B | 790.30M | 1.46B | 1.77B | 1.98B | 1.75B |
| Gross Profit | 687.00M | 389.70M | 756.10M | 895.20M | 1.04B | 945.20M |
| EBITDA | -12.70M | -184.90M | -53.70M | -10.80M | 63.20M | 153.90M |
| Net Income | -254.40M | -326.40M | -137.80M | -75.60M | -4.00M | 90.70M |
Balance Sheet | ||||||
| Total Assets | 823.00M | 525.90M | 1.08B | 1.23B | 998.40M | 775.90M |
| Cash, Cash Equivalents and Short-Term Investments | 131.90M | 44.70M | 230.00M | 332.00M | 115.50M | 293.10M |
| Total Debt | 389.40M | 243.10M | 446.90M | 463.60M | 151.90M | 18.30M |
| Total Liabilities | 674.70M | 522.00M | 795.70M | 825.70M | 534.10M | 303.40M |
| Stockholders Equity | 148.30M | 3.90M | 279.70M | 400.00M | 464.30M | 472.50M |
Cash Flow | ||||||
| Free Cash Flow | -57.30M | -34.00M | -62.90M | 45.50M | -251.20M | 40.10M |
| Operating Cash Flow | -42.30M | -12.70M | 1.90M | 136.70M | 10.30M | 162.80M |
| Investing Cash Flow | -31.70M | 32.20M | -54.80M | -103.30M | -261.50M | -283.40M |
| Financing Cash Flow | -84.10M | -202.90M | -48.00M | 196.20M | 76.50M | 151.20M |
boohoo group Technical Analysis
Neutral
3.50
Price Trends
3.37
Positive
4.03
Negative
5.17
Negative
Market Momentum
>-0.01
Negative
56.26
Neutral
85.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHOOY, the sentiment is Neutral. The current price of 3.5 is above the 20-day moving average (MA) of 3.32, above the 50-day MA of 3.37, and below the 200-day MA of 5.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $51.26B | 8.87 | 17.26% | 3.14% | 14.61% | 32.78% | |
71 Outperform | $1.56B | 28.35 | 12.19% | ― | 9.24% | 35.68% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $5.95B | 44.56 | ― | ― | 1.98% | -20.98% | |
52 Neutral | $1.02B | ― | -35.37% | ― | -4.90% | 50.77% | |
50 Neutral | $1.24B | ― | -176.48% | ― | -4.38% | ― | |
40 Underperform | $219.70M | ― | -187.03% | ― | -44.95% | -124.54% |
* Consumer Cyclical Sector Average
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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.