AO World (GB:AO)
LSE:AO
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AO World
(LSE:AO)
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Rating:63Neutral
Price Target:
94.00 p
▲(1.29% Upside)
Action:Reiterated
Date:10/22/25
The overall stock score of 63 reflects a mixed outlook. The company's financial performance shows recovery signs with improved revenue growth and reduced leverage, but profitability and cash flow remain concerns. Technical analysis indicates positive momentum, supporting a favorable short-term outlook. However, the high P/E ratio suggests potential overvaluation, which could limit upside potential.
Positive Factors
Improved leverage
A materially lower debt-to-equity ratio increases financial resilience and borrowing flexibility, enabling AO to fund working capital, invest in operations, or withstand demand shocks without overreliance on external capital. This stronger capital structure supports stability over the medium term.
Negative Factors
Low net profitability
A sub-1% net margin leaves little buffer against cost inflation or demand softness and limits retained earnings for reinvestment. Persistently thin net profitability constrains strategic initiatives and increases reliance on external funding for growth or restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
A materially lower debt-to-equity ratio increases financial resilience and borrowing flexibility, enabling AO to fund working capital, invest in operations, or withstand demand shocks without overreliance on external capital. This stronger capital structure supports stability over the medium term.
Read all positive factors
AO World (AO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£478.37M
Dividend YieldN/A
Average Volume (3M)764.87K
Price to Earnings (P/E)11.7
Beta (1Y)0.99
Revenue Growth13.21%
EPS Growth-54.35%
CountryUK
Employees2,842
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding570,554,500
10 Day Avg. Volume625,064
30 Day Avg. Volume764,868
Financial Highlights & Ratios
PEG Ratio-0.92
Price to Book (P/B)3.80
Price to Sales (P/S)0.48
P/FCF Ratio11.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£155.00Price Target Upside67.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£1.35B
AO World Business Overview & Revenue Model
Company Description
AO World plc, together with its subsidiaries, operates as an online retailer of domestic appliances and consumer electronics in the United Kingdom and Europe. The company retails fridge freezers, cookers and washing machines, and audiovisual equip...
How the Company Makes Money
AO makes money primarily by retailing appliances and consumer electronics online, earning revenue from the sale of third-party branded products to consumers and, where applicable, to trade/business customers. Its core revenue stream is product sal...
AO World Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.14B | 1.04B | 1.14B | 1.56B | 1.66B |
| Gross Profit | 299.00M | 276.00M | 243.30M | 238.30M | 269.40M | 292.50M |
| EBITDA | 56.60M | 51.30M | 63.30M | 44.50M | 23.70M | 49.30M |
| Net Income | 11.90M | 10.50M | 24.70M | -2.60M | -30.40M | 17.70M |
Balance Sheet | ||||||
| Total Assets | 477.90M | 426.60M | 441.80M | 460.30M | 549.20M | 615.70M |
| Cash, Cash Equivalents and Short-Term Investments | 79.60M | 27.40M | 40.10M | 19.10M | 19.50M | 67.10M |
| Total Debt | 64.60M | 63.30M | 70.90M | 95.30M | 153.60M | 95.30M |
| Total Liabilities | 321.80M | 282.10M | 304.00M | 354.60M | 476.80M | 519.30M |
| Stockholders Equity | 156.10M | 144.50M | 137.80M | 105.70M | 73.40M | 97.70M |
Cash Flow | ||||||
| Free Cash Flow | 90.20M | 49.10M | 53.30M | 22.30M | -62.00M | 105.50M |
| Operating Cash Flow | 93.80M | 58.00M | 61.60M | 24.40M | -52.40M | 114.60M |
| Investing Cash Flow | -9.40M | -13.50M | -7.60M | 7.70M | -9.60M | -9.10M |
| Financing Cash Flow | -47.90M | -57.20M | -33.00M | -32.30M | 14.40M | -45.30M |
AO World Technical Analysis
Neutral
92.80
Price Trends
89.15
Negative
97.04
Negative
97.91
Negative
Market Momentum
-0.93
Negative
47.13
Neutral
52.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AO, the sentiment is Neutral. The current price of 92.8 is above the 20-day moving average (MA) of 88.31, above the 50-day MA of 89.15, and below the 200-day MA of 97.91, indicating a bearish trend. The MACD of -0.93 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AO.
AO World Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.31B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
63 Neutral | £478.37M | 11.70 | 7.92% | ― | 13.21% | -54.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | £295.53M | -0.65 | -155.17% | ― | -15.00% | 21.71% | |
52 Neutral | £585.62M | -8.29 | 12.75% | ― | -1.91% | ― | |
47 Neutral | £585.43M | -7.96 | -90.46% | 4.48% | -30.52% | -2064.92% | |
41 Neutral | £260.28M | -3.32 | -9999.00% | ― | -65.42% | 27.73% |
* Consumer Cyclical Sector Average
GB:AO
AO World
87.60
-18.00
-17.05%
GB:ASC
ASOS plc
231.00
-82.50
-26.32%
GB:SMWH
WH Smith
477.20
-554.67
-53.75%
GB:DEBS
boohoo group Plc
17.25
-4.40
-20.32%
GB:CURY
Currys plc
145.70
23.50
19.23%
GB:THG
THG
32.86
7.36
28.86%
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.