AO World (AO) AI Stock Analysis

• Market Cap: £480.59M
• Dividend Yield: N/A
• Average Volume (3M): 764.87K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.99
• Revenue Growth: 13.21%
• EPS Growth: -54.35%
• Country: UK
• Employees: 2,842
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.02
• Shares Outstanding: 570,554,500
• 10 Day Avg. Volume: 625,064
• 30 Day Avg. Volume: 764,868
• PEG Ratio: -0.92
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 11.18
• 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: £155.00
• Price Target Upside: 67.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): £1.33B

• Rating: 63 Neutral
• Price Target: 92.00 p ▼(-0.86% Downside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 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

Online-focused appliance retail model

AO's pure e-commerce, appliance-focused model is a durable structural advantage: lower fixed store costs, national delivery/installation capabilities, and the ability to scale assortments and services. This model supports margin improvement and market share gains over months as online penetration in appliances grows.

Negative Factors

Very low net profit margin

Sub-1% net margins leave little buffer against input cost inflation, pricing pressure, or margin compression. Persistently low net profitability constrains retained earnings accumulation and limits the company's ability to self-fund growth, making outcomes sensitive to small adverse swings in costs or volumes.

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...

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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...

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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

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

• Technical Analysis Sentiment: Negative
• Last Price: 92.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 89.31, below the 50-day MA of 97.36, and below the 200-day MA of 98.88, indicating a bearish trend. The MACD of -3.29 indicates Negative momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	73 Outperform	£1.33B	23.58	5.88%	1.18%	9.51%	-31.96%
AO	63 Neutral	£480.59M	11.70	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ASC	52 Neutral	£264.56M	-1.12	-111.93%	―	-14.89%	12.08%
THG	48 Neutral	£531.18M	11.73	-35.25%	―	-20.36%	44.33%
SMWH	46 Neutral	£727.43M	-6.05	-62.07%	4.48%	-19.03%	-318.35%
DEBS	41 Neutral	£271.75M	-3.32	-9999.00%	―	-65.42%	27.73%