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AO World
(LSE:AO)
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Rating:70Outperform
Price Target:
101.00 p
▲(8.84% Upside)
Action:Upgraded
Date:06/18/26
The score is driven primarily by improved financial performance—stronger profitability, healthier leverage, and robust free cash flow—tempered by the company’s historical volatility. Technicals are neutral-to-mixed with price below longer-term averages, while valuation is moderately supportive on a ~14.3 P/E (with no dividend yield data).
Positive Factors
Free cash flow generation
Consistent, high free cash flow that nearly equals reported profit provides durable financial flexibility. Over the next 2–6 months this supports reinvestment in logistics and service, continued deleveraging, and the ability to absorb demand dips without immediate external financing.
Negative Factors
Historical volatility
Past episodes of losses and negative cash flow indicate earnings and cash generation can reverse under stress. This cyclicality undermines confidence in a sustained recovery and means durability of recent improvements is uncertain without longer trend consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent, high free cash flow that nearly equals reported profit provides durable financial flexibility. Over the next 2–6 months this supports reinvestment in logistics and service, continued deleveraging, and the ability to absorb demand dips without immediate external financing.
Read all positive factors
AO World (AO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£500.04M
Dividend YieldN/A
Average Volume (3M)764.87K
Price to Earnings (P/E)14.1
Beta (1Y)1.03
Revenue Growth11.35%
EPS Growth247.54%
CountryUK
Employees2,842
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding570,554,500
10 Day Avg. Volume625,064
30 Day Avg. Volume764,868
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.79
Price to Sales (P/S)0.39
P/FCF Ratio5.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£160.00Price Target Upside72.41% 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
Operating across the United Kingdom and Europe, AO World plc functions as an online retail giant for a diverse range of domestic appliances and consumer electronics. Its extensive product catalog includes major white goods such as refrigerators, f...
How the Company Makes Money
AO primarily generates revenue by selling products directly to consumers online, with major domestic appliances forming the core of its sales. Revenue is also supported by service and ancillary income linked to those product sales, such as paid-fo...
AO World Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.27B | 1.14B | 1.04B | 1.14B | 1.56B |
| Gross Profit | 316.10M | 276.00M | 243.30M | 238.30M | 269.40M |
| EBITDA | 78.80M | 51.30M | 63.30M | 44.50M | 23.70M |
| Net Income | 35.90M | 10.50M | 24.70M | -2.60M | -30.40M |
Balance Sheet | |||||
| Total Assets | 485.40M | 426.60M | 441.80M | 460.30M | 549.20M |
| Cash, Cash Equivalents and Short-Term Investments | 81.30M | 27.40M | 40.10M | 19.10M | 19.50M |
| Total Debt | 64.80M | 63.30M | 70.90M | 95.30M | 153.60M |
| Total Liabilities | 308.60M | 282.10M | 304.00M | 354.60M | 476.80M |
| Stockholders Equity | 175.50M | 144.50M | 137.80M | 105.70M | 73.40M |
Cash Flow | |||||
| Free Cash Flow | 91.30M | 49.10M | 53.30M | 22.30M | -62.00M |
| Operating Cash Flow | 96.50M | 58.00M | 61.60M | 24.40M | -52.40M |
| Investing Cash Flow | -6.00M | -13.50M | -7.60M | 7.70M | -9.60M |
| Financing Cash Flow | -36.60M | -57.20M | -33.00M | -32.30M | 14.40M |
AO World Technical Analysis
Negative
92.80
Price Trends
90.13
Negative
92.19
Negative
98.33
Negative
Market Momentum
-0.28
Positive
48.88
Neutral
22.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AO, the sentiment is Negative. The current price of 92.8 is above the 20-day moving average (MA) of 91.20, above the 50-day MA of 90.13, and below the 200-day MA of 98.33, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £1.66B | 12.77 | 5.88% | 1.18% | 9.51% | -31.96% | |
70 Outperform | £500.04M | 14.11 | 21.65% | ― | 11.35% | 247.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | £526.84M | 7.17 | 12.75% | ― | -1.91% | ― | |
49 Neutral | £348.18M | -1.50 | -155.17% | ― | -15.00% | 21.71% | |
49 Neutral | £354.79M | -3.10 | 415.28% | ― | 16.03% | 69.69% | |
44 Neutral | £597.55M | -3.90 | -90.46% | 4.48% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
GB:AO
AO World
91.00
-5.80
-5.99%
GB:ASC
ASOS plc
288.50
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-4.79%
GB:SMWH
WH Smith
386.40
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-63.86%
GB:DEBS
boohoo group Plc
22.75
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11.25%
GB:CURY
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158.80
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33.04%
GB:THG
THG
29.44
-2.84
-8.80%
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.