Frasers Group (FRAS) AI Stock Analysis

• Market Cap: £2.93B
• Dividend Yield: N/A
• Average Volume (3M): 156.56K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.38
• Revenue Growth: -6.43%
• EPS Growth: 52.93%
• Country: UK
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.50
• Shares Outstanding: 450,249,900
• 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: £868.33
• Price Target Upside: 28.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 757.00p ▲(11.73% Upside)

Frasers Group's overall stock score is driven by its solid financial performance and strategic corporate events, which enhance its market position. While technical indicators suggest weak momentum, the company's undervaluation and strategic initiatives provide a positive outlook.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates the company's ability to fund operations and growth initiatives without relying heavily on external financing.

Operational Efficiency

Improved operational efficiency through cost management enhances profitability and competitiveness in the retail sector.

Balance Sheet Health

A stable balance sheet with manageable debt levels provides financial flexibility and reduces risk, supporting long-term growth.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding sales, which could affect market share and long-term competitiveness.

Profitability Margins

Declining profitability margins may hinder the company's ability to reinvest in business development and innovation, impacting future growth.

Earnings Growth

Negative EPS growth suggests the company is struggling to increase its earnings, which can affect investor confidence and funding capabilities.

Frasers Group Business Overview & Revenue Model

Company Description

Frasers Group plc is a UK-based retail and sporting goods company that operates a diverse portfolio of retail brands across various sectors, including sports, fashion, and lifestyle. The company is known for its ownership of well-known retail chains such as Sports Direct, Flannels, and House of Fraser. Frasers Group focuses on providing a wide range of products, including sports apparel, footwear, and lifestyle fashion, while also emphasizing customer experience through both online and physical retail channels.

How the Company Makes Money

Frasers Group generates revenue primarily through the sale of products across its various retail brands. The company's key revenue streams include direct sales from physical stores, online sales through its e-commerce platforms, and wholesale distributions. Additionally, Frasers Group benefits from its extensive product range, which includes exclusive brands and collaborations, driving customer traffic and sales volume. The company has also established strategic partnerships with various brands, enhancing its product offerings and market reach. Furthermore, Frasers Group's investment in technology and logistics helps optimize its supply chain, reducing costs and improving profit margins. Seasonal promotions and marketing initiatives further contribute to boosting sales during peak shopping periods.

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 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.97B	4.93B	5.56B	5.54B	4.69B	3.96B
Gross Profit	2.43B	2.31B	2.37B	2.40B	2.04B	1.37B
EBITDA	1.02B	778.70M	976.20M	883.10M	609.70M	478.00M
Net Income	467.70M	292.10M	491.70M	380.80M	249.80M	93.80M
Balance Sheet
Total Assets	6.07B	5.13B	4.29B	4.45B	4.14B	3.87B
Cash, Cash Equivalents and Short-Term Investments	359.80M	252.20M	332.90M	358.60M	336.80M	534.00M
Total Debt	2.33B	1.86B	1.43B	1.45B	1.45B	1.52B
Total Liabilities	3.68B	3.14B	2.63B	2.58B	2.83B	2.59B
Stockholders Equity	2.36B	1.96B	1.62B	1.84B	1.29B	1.27B
Cash Flow
Free Cash Flow	292.60M	531.70M	44.90M	415.00M	159.20M	45.20M
Operating Cash Flow	669.20M	943.40M	514.30M	682.20M	482.40M	368.70M
Investing Cash Flow	-730.70M	-1.21B	-201.40M	-387.40M	-123.50M	-203.70M
Financing Cash Flow	91.00M	161.90M	-320.40M	-297.60M	-479.20M	-84.00M

Frasers Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 677.50
• 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:FRAS, the sentiment is Negative. The current price of 677.5 is below the 20-day moving average (MA) of 699.15, below the 50-day MA of 707.16, and below the 200-day MA of 686.07, indicating a bearish trend. The MACD of -10.98 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 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
DNLM	75 Outperform	£2.27B	14.56	121.78%	3.96%	3.78%	3.29%
PETS	74 Outperform	£899.23M	12.02	7.90%	6.43%	-1.35%	-12.67%
FRAS	73 Outperform	£2.93B	6.27	19.54%	―	-6.43%	52.93%
CURY	71 Outperform	£1.36B	10.59	6.16%	1.18%	9.51%	-31.96%
JD	71 Outperform	£4.18B	8.55	19.64%	1.18%	14.60%	58.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SMWH	55 Neutral	£793.45M	-5.62	-11.61%	4.38%	-19.03%	-318.35%

Frasers Group Corporate Events

Frasers Group Reports Solid First Half Amid Challenging Market Conditions

Frasers Group reported a solid first half of FY26, driven by its Elevation Strategy, which focuses on improving margins, cost savings, and international expansion. Despite challenging market conditions, the company achieved a 5% revenue increase, with significant growth in international sales. The Group continues to invest in brand partnerships and property acquisitions, enhancing its market position and long-term growth prospects. The company remains cautious about the second half but is confident in its strategic initiatives to navigate industry challenges.

Frasers Group Announces Updated Voting Rights

Frasers Group PLC announced the total number of voting rights and capital as of the end of November 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 information is crucial for shareholders to assess their interests and any changes in their holdings, impacting the company’s transparency and stakeholder engagement.

Frasers Group Acquires Braehead Shopping Centre to Boost Retail Portfolio

Frasers Group PLC has acquired Braehead Shopping Centre, a major retail and leisure destination in Glasgow, as part of its Elevation Strategy. This acquisition strengthens Frasers Group’s position as a leading operator in the retail sector and supports its goal to provide top brands and experiences, while expanding its property portfolio in the UK.

Frasers Group Updates Total Voting Rights and Share Capital

Frasers Group PLC announced the total voting rights and share capital as of the end of October 2025. The company reported 640,602,369 ordinary shares, with 190,286,334 held as treasury shares, resulting in 450,316,035 voting rights. This information is crucial for shareholders to determine their notification requirements under FCA rules, impacting how they manage their interests in the company.

Frasers Group Director Increases Stake with Share Purchase

Frasers Group PLC announced that Andy Lyon, a Non-Executive Director, purchased 15,000 ordinary shares of the company at a price of £7.041 per share, totaling £105,619.24. This transaction, conducted on 15 October 2025 in London, reflects a significant personal investment by a key member of the company’s board, potentially signaling confidence in the company’s future performance and stability.

Frasers Group Announces Updated Voting Rights and Share Capital

Frasers Group PLC has announced the total number of voting rights and capital in the company as of the end of September 2025. The company has 640,602,369 ordinary shares, with 190,286,334 held as treasury shares, resulting in 450,316,035 voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Frasers Group Strengthens Board with New Appointments

Frasers Group PLC has announced changes to its Board of Directors, emphasizing its commitment to its Elevation Strategy. David Daly, Ger Wright, and Helen Wright have stepped down, while Andy Lyon and Jacky Wright have been appointed as Non-Executive Directors. Andy Lyon brings extensive experience in retail and consumer markets from his time at PwC, and Jacky Wright is a seasoned technology executive with a strong background in digital transformation. These appointments are expected to bolster the company’s strategic direction and operational capabilities.

Frasers Group Secures Strong Backing at 2025 AGM

Frasers Group PLC announced the results of its 2025 Annual General Meeting, where all resolutions proposed were passed with significant majorities. Key resolutions included the re-election of board members, approval of the remuneration report, and authorization for share allotment and purchases. The successful passage of these resolutions reinforces the company’s strategic direction and governance practices, potentially strengthening its market position and investor confidence.

Frasers Group Strengthens Board with Technology Expert Appointment

Frasers Group has announced the proposed appointment of Jacky Wright as a Non-Executive Director, pending final Board approval. Wright, a seasoned technology executive with extensive experience in digital transformation and AI, is expected to enhance the Group’s long-term growth strategy. This move highlights Frasers Group’s commitment to strengthening its Board and advancing its Elevation Strategy, with a focus on digital and AI transformation.