Frasers Group (FRAS) AI Stock Analysis

• Market Cap: £2.96B
• Dividend Yield: N/A
• Average Volume (3M): 156.56K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.27
• Revenue Growth: -11.05%
• EPS Growth: -23.14%
• Country: UK
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.32
• Shares Outstanding: 450,316,040
• 10 Day Avg. Volume: 119,313
• 30 Day Avg. Volume: 156,565
• PEG Ratio: -1.04
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 8.63
• 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: £780.00
• Price Target Upside: 11.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 749.00p ▲(7.31% Upside)

Frasers Group's overall stock score reflects a solid financial foundation with strengths in cash flow and operational efficiency. The valuation suggests the stock is undervalued, providing potential upside. However, technical indicators show neutral to bearish trends, and challenges in revenue growth and profitability margins remain areas for improvement.

Positive Factors

Cash Generation

The company's ability to generate free cash flow indicates strong cash management, providing flexibility for reinvestment and debt reduction.

Operational Efficiency

Improving gross profit margins suggest effective cost controls, enhancing profitability and competitiveness over time.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial stability and supports long-term strategic initiatives.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding market share, which could impact long-term business sustainability.

Profitability Pressures

Declining net profit margins may limit the company's ability to reinvest in growth and maintain competitive positioning.

Earnings Decline

A significant drop in earnings per share growth can challenge investor confidence and affect the company's valuation over the medium term.

Frasers Group Business Overview & Revenue Model

Company Description

Frasers Group plc is a British retail and sports goods company that operates a diverse portfolio of brands in the retail sector, including Sports Direct, Flannels, House of Fraser, and Jack Wills. The company is primarily focused on sports and lifestyle retailing, offering a wide range of products from sports apparel and footwear to fashion and home goods. Frasers Group has positioned itself as a significant player in the UK retail market, leveraging its multi-channel approach to reach consumers both in-store and online.

How the Company Makes Money

Frasers Group generates revenue through multiple streams, primarily from the retail sales of sports and lifestyle products across its extensive brand portfolio. Key revenue streams include sales from physical retail stores, e-commerce platforms, and outlet stores. The company capitalizes on a strong online presence to enhance its sales figures, reflecting the growing trend of online shopping. Additionally, Frasers Group benefits from strategic partnerships with various brands and suppliers, allowing it to offer exclusive products and promotions that drive customer traffic and sales. The company also invests in enhancing its retail experiences and expanding its product offerings, which contribute to customer loyalty and increased revenue over time.

Frasers Group Financial Statement Overview

Summary

Frasers Group demonstrates a solid financial position with strengths in operational efficiency and cash flow generation. However, challenges in revenue growth and profitability margins indicate areas for improvement. The company's balanced approach to financing and effective cash management provide a stable foundation for future growth.

Income Statement

Frasers Group has shown a mixed performance in its income statement. The gross profit margin has improved over the years, indicating efficient cost management. However, the revenue growth rate has been negative in recent years, reflecting challenges in increasing sales. The net profit margin has also declined, suggesting pressure on profitability. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, showcasing operational efficiency.

Balance Sheet

The balance sheet of Frasers Group reflects a stable financial position with a manageable debt-to-equity ratio, which has improved over time. The return on equity has been strong, indicating effective use of shareholder funds. However, the equity ratio is moderate, suggesting a balanced approach to financing through debt and equity.

Cash Flow

Frasers Group's cash flow statement shows a positive trend in free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting effective conversion of earnings into cash. The free cash flow to net income ratio also supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	4.93B	5.54B	5.56B	4.69B	3.96B
Gross Profit	2.30B	2.31B	2.40B	2.37B	2.04B	1.37B
EBITDA	776.70M	778.70M	883.10M	976.20M	609.70M	478.00M
Net Income	292.10M	292.10M	380.80M	491.70M	249.80M	93.80M
Balance Sheet
Total Assets	5.13B	5.13B	4.45B	4.29B	4.14B	3.87B
Cash, Cash Equivalents and Short-Term Investments	252.20M	252.20M	358.60M	332.90M	336.80M	534.00M
Total Debt	1.86B	1.86B	1.45B	1.43B	1.45B	1.52B
Total Liabilities	3.14B	3.14B	2.58B	2.63B	2.83B	2.59B
Stockholders Equity	1.96B	1.96B	1.84B	1.62B	1.29B	1.27B
Cash Flow
Free Cash Flow	471.40M	531.70M	415.00M	44.90M	159.20M	45.20M
Operating Cash Flow	883.10M	943.40M	682.20M	514.30M	482.40M	368.70M
Investing Cash Flow	-1.23B	-1.21B	-387.40M	-201.40M	-123.50M	-203.70M
Financing Cash Flow	245.00M	161.90M	-297.60M	-320.40M	-479.20M	-84.00M

Frasers Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 698.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAS, the sentiment is Negative. The current price of 698 is below the 20-day moving average (MA) of 719.27, below the 50-day MA of 715.48, and above the 200-day MA of 674.85, indicating a neutral trend. The MACD of -5.18 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRAS.

Frasers Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETS	74 Outperform	£939.87M	11.04	8.90%	6.21%	0.37%	14.78%
JD	71 Outperform	£4.30B	8.68	19.64%	1.18%	14.60%	58.84%
DNLM	69 Neutral	£2.33B	14.98	121.78%	3.98%	3.78%	3.29%
FRAS	68 Neutral	£2.96B	10.14	15.02%	―	-11.05%	-23.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CURY	60 Neutral	£1.39B	13.21	5.01%	1.17%	2.71%	-34.19%
SMWH	55 Neutral	£812.13M	126.36	2.46%	4.42%	4.46%	-89.55%

Frasers Group Corporate Events

Frasers Group Updates Total Voting Rights and Capital Structure

Frasers Group PLC has announced an update on its total voting rights and capital, revealing that the company has 640,602,369 ordinary shares, with 190,286,334 held as treasury shares, resulting in 450,316,035 total voting rights. This information is crucial for shareholders to calculate their interests and comply with the FCA’s Disclosure Guidance and Transparency Rules, impacting how stakeholders manage their investments and interests in the company.

The most recent analyst rating on (GB:FRAS) stock is a Buy with a £1050.00 price target. To see the full list of analyst forecasts on Frasers Group stock, see the GB:FRAS Stock Forecast page.

Frasers Group Acquires Controlling Stake in Distressed XXL ASA

Frasers Group PLC has announced its acquisition of a controlling stake in XXL ASA, a company facing significant financial distress due to liquidity issues and supply chain delays. Frasers now controls over 92% of XXL’s share capital and 90% of its voting shares. The acquisition positions Frasers to potentially stabilize XXL, but the success of this endeavor is uncertain given the company’s deteriorated state. Frasers emphasizes the need for collaboration among stakeholders to attempt to save XXL, acknowledging the challenges posed by the current situation.

The most recent analyst rating on (GB:FRAS) stock is a Buy with a £1050.00 price target. To see the full list of analyst forecasts on Frasers Group stock, see the GB:FRAS Stock Forecast page.

Frasers Group Completes Holdsport Acquisition

Frasers Group plc has announced the completion of its acquisition of Holdsport, following the fulfillment of customary regulatory conditions. This acquisition is part of Frasers Group’s strategic expansion efforts, potentially strengthening its market position and offering new opportunities for growth.

The most recent analyst rating on (GB:FRAS) stock is a Buy with a £1050.00 price target. To see the full list of analyst forecasts on Frasers Group stock, see the GB:FRAS Stock Forecast page.

Frasers Group Updates Shareholder Voting Rights

Frasers Group PLC has announced the total number of voting rights and capital as of the end of April 2025, in compliance with FCA’s Disclosure Guidance and Transparency Rules. The company has 640,602,369 ordinary shares, with 450,316,035 voting rights after accounting for treasury shares. This update is crucial for shareholders to assess their interests in the company, ensuring transparency and regulatory compliance.

Frasers Group Expands Sports Direct into Australasia with Accent Partnership

Frasers Group has announced a 25-year strategic partnership with Accent Group to launch the Sports Direct brand across Australia and New Zealand, marking a significant step in its international expansion strategy. This partnership, supported by Frasers increasing its stake in Accent Group to 19.57%, aims to open 100 stores in the region, leveraging Accent’s established retail presence and Frasers’ strong brand relationships to capture growth opportunities in the Australasian sports retail market.

Frasers Group Expands Stake in Hugo Boss with Strategic Investment

Frasers Group has increased its investment in Hugo Boss by acquiring additional shares and selling put options, potentially raising its stake to 23.7% of Hugo Boss’ total share capital. This strategic move is part of Frasers Group’s broader investment strategy to create value for shareholders and strengthen its position in the fashion industry, with CEO Michael Murray nominated for Hugo Boss’ Supervisory Board.

Frasers Group Updates on Voting Rights and Share Capital

Frasers Group PLC has announced an update on its total voting rights and share capital, reporting 450,316,035 voting rights after accounting for treasury shares. This information is crucial for shareholders to determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Frasers Group Expands Sports Direct into Southeast Asia and India

Frasers Group has announced an expansion of its partnership with MAP Active to introduce Sports Direct stores in five new markets across Southeast Asia and India. This move is part of a long-term growth strategy to open over 350 stores, leveraging MAP Active’s local expertise and Frasers Group’s brand strength to establish Sports Direct as a leading sports retailer in the region.