boohoo group Plc (DEBS) AI Stock Analysis

• Market Cap: £158.87M
• Dividend Yield: N/A
• Average Volume (3M): 7.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -45.91%
• EPS Growth: -120.22%
• Country: UK
• Employees: 5,079
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.01
• Shares Outstanding: 1,397,424,200
• 10 Day Avg. Volume: 3,372,778
• 30 Day Avg. Volume: 7,734,993
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £14.75
• Price Target Upside: 19.53% Upside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 5

• Rating: 38 Underperform
• Price Target: 13.00p ▲(5.35% Upside)

boohoo group Plc's stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's negative profitability and high leverage pose significant risks. Additionally, bearish technical signals and a negative P/E ratio further contribute to the low score.

Positive Factors

Business Model Strength

The direct-to-consumer model enhances margin potential and pricing flexibility, allowing Boohoo to maintain competitive pricing and adapt quickly to market changes.

Market Position

Boohoo's focus on trendy, affordable fashion for young consumers positions it well in the fast-fashion segment, catering to a demographic with high online shopping engagement.

Product Adaptability

Boohoo's agile product adaptation to consumer trends and feedback supports sustained revenue generation and customer retention in the fast-paced fashion industry.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in maintaining market share and consumer interest, which can impact long-term growth and profitability.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting Boohoo's ability to invest in growth opportunities and weather economic downturns.

Negative Profitability

Negative profitability reflects operational inefficiencies and financial distress, challenging Boohoo's ability to generate sustainable profits and shareholder value.

boohoo group Plc Business Overview & Revenue Model

Company Description

Boohoo Group Plc (DEBS) is a UK-based online fashion retailer that specializes in providing trendy, affordable clothing and accessories primarily targeted towards young consumers. Founded in 2006, the company operates several brands including Boohoo, PrettyLittleThing, and Nasty Gal. The Group focuses on fast-fashion, leveraging digital platforms to respond quickly to market trends and consumer demands, thereby offering a wide range of products that include apparel, footwear, and beauty items.

How the Company Makes Money

Boohoo Group Plc generates revenue primarily through its e-commerce sales, offering a vast array of clothing and accessories through its various brand websites. The company employs a direct-to-consumer model, which allows it to sell products at competitive prices by cutting out traditional retail costs. Key revenue streams include online sales, international markets, and collaborations with influencers and fashion industry partners to enhance brand visibility and drive traffic to its websites. Additionally, Boohoo capitalizes on seasonal promotions and sales events, which attract consumers looking for discounted fashion. The group's ability to quickly adapt its product offerings based on customer feedback and fashion trends further contributes to its revenue, as it maintains a robust inventory turnover rate.

boohoo group Plc Financial Statement Overview

Summary

Overall, the financials indicate a challenging period for the company with declining revenues, profitability issues, and deteriorating cash flows. While some aspects of the balance sheet are stable, the overall financial health is concerning and suggests the need for strategic adjustments to improve performance.

Income Statement

The company's income statement reveals declining revenue over the past three years, with significant losses in net income and EBIT. The gross profit margin is relatively stable at over 50%, but the net profit margin has been negative for the last two years, indicating profitability challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a manageable level of debt. However, the decline in stockholders' equity suggests financial stress. The equity ratio remains positive, indicating some stability in its asset base.

Cash Flow

Cash flow analysis shows a significant drop in free cash flow, with negative values indicating cash outflows exceeding inflows. Operating cash flow has also decreased significantly, suggesting issues with cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	790.30M	1.46B	1.77B	1.98B	1.75B
Gross Profit	714.80M	389.70M	756.10M	895.20M	1.04B	945.20M
EBITDA	-43.10M	-184.90M	-53.70M	-10.80M	63.20M	154.80M
Net Income	-137.80M	-326.40M	-137.80M	-75.60M	-4.00M	90.70M
Balance Sheet
Total Assets	1.08B	525.90M	1.08B	1.23B	998.40M	775.90M
Cash, Cash Equivalents and Short-Term Investments	230.00M	44.70M	230.00M	330.90M	101.30M	276.00M
Total Debt	446.90M	243.10M	446.90M	463.60M	151.90M	18.30M
Total Liabilities	795.70M	522.00M	795.70M	825.70M	534.10M	303.40M
Stockholders Equity	279.70M	3.90M	279.70M	400.00M	464.30M	472.50M
Cash Flow
Free Cash Flow	-49.20M	-34.00M	-62.90M	45.50M	-251.20M	40.10M
Operating Cash Flow	-2.20M	-12.70M	1.90M	136.70M	10.30M	162.80M
Investing Cash Flow	-60.10M	32.20M	-54.80M	-103.30M	-261.50M	-283.40M
Financing Cash Flow	-38.60M	-202.90M	-48.00M	196.20M	76.50M	151.20M

boohoo group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEBS, the sentiment is Negative. The current price of 12.34 is below the 20-day moving average (MA) of 13.32, below the 50-day MA of 15.24, and below the 200-day MA of 22.90, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DEBS.

boohoo group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AO	59 Neutral	567.40M	54.54	7.27%	―	9.45%	-57.24%
MRK	57 Neutral	54.57M	-37.68	-12.82%	1.85%	2.55%	-445.00%
THG	52 Neutral	570.69M	-3.70	-106.64%	―	-20.36%	―
ASC	46 Neutral	355.65M	-1.21	-64.97%	―	-15.86%	-18.46%
MOON	46 Neutral	715.25M	-74.58	33.36%	0.46%	2.62%	-129.82%
DEBS	38 Underperform	£158.87M	―	-185.68%	―	-45.91%	-120.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

boohoo group Plc Corporate Events

Boohoo Group Rebrands to Debenhams Despite Shareholder Vote

Boohoo group plc announced the outcome of its General Meeting, where the proposal to change the corporate name to Debenhams Group plc was not passed. Despite this, the company will continue to operate under the Debenhams brand, with a new stock market identifier ‘DEBS’ effective from March 31, 2025. The board expressed satisfaction with the majority shareholder support and remains optimistic about the company’s future, emphasizing the successful turnaround of Debenhams as a model for the broader group’s strategy.

boohoo Group Rebrands as Debenhams Group Following Successful Turnaround

boohoo group Plc has successfully completed the turnaround of Debenhams, transforming it into a profitable and rapidly growing online department store. The company will now operate as Debenhams Group, focusing on a marketplace-led business model to enhance growth and profitability. This strategic shift is expected to drive the recovery of the wider group, including its youth brands, and strengthen its position in the global digital retail space. The group has also announced a new ESG strategy and leadership changes, including the appointment of Phil Ellis as the new CFO.

Frasers Group Increases Stake in Boohoo Group

Frasers Group Plc has increased its stake in Boohoo Group PLC, raising its voting rights from 28.008079% to 29.053700%. This acquisition of voting rights indicates a strategic move by Frasers Group to strengthen its influence within Boohoo, potentially impacting the company’s strategic decisions and market positioning.

boohoo Group Grants Shares to Executives and Directors

boohoo group plc announced the grant of options over 8,293,104 ordinary shares to its top executives, Dan Finley and Stephen Morana, as part of their compensation and appointment agreements. Additionally, the company issued 275,864 shares to its non-executive directors as part of their compensation package. These actions are part of boohoo’s strategy to align management incentives with company performance, enhancing its operational and strategic positioning. The issuance of new shares will not dilute existing shareholders’ interests, maintaining the company’s focus on sustainable growth.

boohoo Co-Founder Increases Stake with Share Purchase

Carol Kane, Co-Founder and Executive Director of boohoo group plc, has purchased 330,295 ordinary shares, increasing her stake to approximately 1.50% of the company’s issued share capital. This transaction reflects insider confidence and may influence shareholder perspectives on the company’s stability and future prospects.

Boohoo Shareholders Reject Frasers’ Proposal to Remove Director

Boohoo Group plc announced that shareholders overwhelmingly rejected the proposal by Frasers Group plc to remove Mahmud Kamani as a director. With over 63% of votes against the resolution, the Board emphasized its commitment to creating shareholder value and urged Frasers to cease its destabilizing efforts. The outcome reflects strong support from shareholders, aligning with a previous rejection of Frasers’ attempts in December, reinforcing the Board’s mandate to focus on maximizing shareholder value.

Glass Lewis Advises Against Removing Mahmud Kamani from Boohoo’s Board

Boohoo group plc faces a recommendation from independent proxy adviser Glass Lewis for shareholders to vote against a resolution to remove Mahmud Kamani as a director at the upcoming General Meeting. Glass Lewis acknowledges the company’s recent strategic actions, including a business review and leadership changes, which they believe will retain Kamani’s expertise while empowering new leadership to enhance performance. The recommendation aligns with the company’s Independent Committee and Institutional Shareholder Services Inc., indicating significant support for the current leadership strategy.

boohoo Board Urges Rejection of Frasers’ Resolution

The Independent Committee of boohoo group plc is urging shareholders to vote against the resolution proposed by Frasers Group plc at the upcoming General Meeting, which seeks to remove Mahmud Kamani as a director. This recommendation is supported by Institutional Shareholder Services Inc. (ISS) and stems from concerns that Frasers’ actions aim to destabilize boohoo’s operations for its own commercial gain. The committee highlights the strategic steps taken by the board to enhance shareholder value, such as appointing Dan Finley as CEO, implementing cost savings, and raising equity capital.

boohoo’s Co-Founder Increases Shareholding, Signaling Confidence

boohoo group plc announced that Carol Kane, Co-Founder and Executive Director, has purchased 320,943 ordinary shares at a price of 31.08 pence per share, increasing her beneficial interest to approximately 1.47% of the company’s issued share capital. This transaction could signify confidence in the company’s future prospects and may influence the perception of stakeholders regarding the company’s market position and leadership stability.