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Frasers Group (GB:FRAS)
LSE:FRAS

Frasers Group (FRAS) AI Stock Analysis

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GB

Frasers Group

(LSE:FRAS)

Rating:69Neutral
Price Target:
776.00p
▲( 10.07% Upside)
Frasers Group's overall score reflects its financial stability and strategic growth initiatives. The solid cash flow and undervaluation are significant strengths. The company's expansion efforts are promising, though the halted acquisition introduces some risk. Technical analysis suggests caution due to overbought indicators.
Positive Factors
International Growth
The international growth story is progressing strongly with significant developments in SE Asia, MENA, Australia, Southern Europe, and Africa.
Strategic Partnerships
Frasers has announced a long-term strategic retail partnership with Accent Group with the objective of opening 100 stores in the ANZ region.
Negative Factors
Challenging Markets
The Luxury market has continued to be challenging, and Frasers is seeing little evidence of any green shoots yet.
Financial Performance
Trading/opex headwinds following the UK Budget see analysts lower FY25/FY26 aPBT forecasts by -5%/-10%.

Frasers Group (FRAS) vs. iShares MSCI United Kingdom ETF (EWC)

Frasers Group Business Overview & Revenue Model

Company DescriptionFrasers Group plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, and apparel through department stores, shops, and online in the United Kingdom and internationally. The company operates through five segments: UK Sports Retail, Premium Lifestyle, European Retail, Rest of World Retail, and Wholesale & Licensing. It is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel; and licensing activities. The company offers its products under its own and third party brands, which include Slazenger, Everlast, Lonsdale, Karrimor, 18montrose, Evans Cycles, Flannels, Frasers, Game, House of Fraser, Jack Wills, Sofa.com, Sports Direct, USC, Flannels, Cruise, van mildert, House of Fraser, Sofa.com, and Jack Wills. As of April 25, 2021, it operated 806 sports retail stores in the United Kingdom; 486 sports retail stores in Europe; 33 stores in Malaysia; 44 stores in the United States; and 179 Premium Lifestyle stores. The company was formerly known as Sports Direct International plc and changed its name to Frasers Group plc in December 2019. Frasers Group plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom. Frasers Group plc operates as a subsidiary of MASH Holdings Limited.
How the Company Makes MoneyFrasers Group generates revenue through a combination of retail sales, online commerce, and brand management. The company operates a vast number of physical retail locations, which are complemented by its e-commerce platforms, allowing it to reach a broad customer base. Key revenue streams include the sale of sportswear, equipment, and fashion items under both owned and licensed brands. Frasers Group also benefits from strategic acquisitions and partnerships, which enhance its brand portfolio and market reach. Additionally, the company's investment in logistics and supply chain efficiencies helps to optimize costs and increase profitability.

Frasers Group Financial Statement Overview

Summary
Frasers Group demonstrates financial stability and operational efficiency, with strong cash flow generation and a solid equity base. While revenue growth has stalled, the company maintains stable profit margins and a manageable debt level. Continued focus on revenue growth and profit margins will be crucial for future performance.
Income Statement
65
Positive
Frasers Group's income statement reveals a mixed performance. The gross profit margin remains stable at 43.3%, indicating efficient cost management. However, the net profit margin has decreased to 6.9% from the previous year due to a drop in net income. Revenue growth is negative, declining by 0.34% compared to last year, which may be a concern. Despite these challenges, the company has improved its EBIT margin to 9.4%, suggesting better operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a robust position with an equity ratio of 41.4%, reflecting a strong equity base. The debt-to-equity ratio stands at 0.79, indicating a moderate level of leverage that is manageable. Return on equity is 20.6%, demonstrating effective utilization of shareholders' equity to generate profits. Overall, the balance sheet suggests financial stability with adequate equity and manageable debt levels.
Cash Flow
72
Positive
Cash flow analysis highlights an impressive operating cash flow to net income ratio of 1.79, indicating strong cash generation relative to net income. The free cash flow growth rate is 823.3%, driven by a significant increase in free cash flow, which reflects improved cash management. The free cash flow to net income ratio is 1.09, showcasing efficient conversion of profits into cash. These metrics point to a solid cash flow position with strong liquidity.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
5.54B5.56B4.69B3.51B3.96B
Gross Profit
2.40B2.37B2.04B1.48B1.37B
EBIT
520.60M339.70M450.80M200.90M165.70M
EBITDA
883.10M976.20M609.70M337.30M478.00M
Net Income Common Stockholders
380.80M491.70M249.80M-83.00M93.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
358.60M332.90M336.80M457.00M534.00M
Total Assets
4.45B4.29B4.14B3.79B3.87B
Total Debt
1.45B1.43B1.45B1.43B1.52B
Net Debt
1.09B1.10B1.11B971.60M990.10M
Total Liabilities
2.58B2.63B2.83B2.57B2.59B
Stockholders Equity
1.84B1.62B1.29B1.19B1.27B
Cash FlowFree Cash Flow
415.00M44.90M159.20M276.50M45.20M
Operating Cash Flow
682.20M514.30M482.40M496.90M368.70M
Investing Cash Flow
-387.40M-201.40M-123.50M-289.90M-203.70M
Financing Cash Flow
-297.60M-320.40M-479.20M-278.70M-84.00M

Frasers Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price705.00
Price Trends
50DMA
646.02
Positive
100DMA
629.65
Positive
200DMA
705.01
Negative
Market Momentum
MACD
21.71
Negative
RSI
65.05
Neutral
STOCH
64.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAS, the sentiment is Positive. The current price of 705 is above the 20-day moving average (MA) of 687.10, above the 50-day MA of 646.02, and below the 200-day MA of 705.01, indicating a neutral trend. The MACD of 21.71 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 64.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FRAS.

Frasers Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£1.18B13.489.37%5.01%2.78%11.20%
GBJD
77
Outperform
£4.79B9.7918.22%1.12%2.85%61.98%
76
Outperform
£2.39B15.8484.81%6.72%3.07%1.42%
74
Outperform
£1.37B6.942.95%-10.46%396.13%
72
Outperform
£1.33B204.652.46%3.19%4.46%-89.55%
69
Neutral
£2.99B10.0516.46%-6.82%-37.46%
62
Neutral
$6.88B11.262.78%3.93%2.65%-22.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FRAS
Frasers Group
705.00
-123.00
-14.86%
GB:DNLM
Dunelm Group
1,177.00
192.04
19.50%
GB:PETS
Pets at Home
259.00
-4.66
-1.77%
GB:SMWH
WH Smith
1,028.00
-48.86
-4.54%
GB:CURY
Currys plc
127.40
57.20
81.48%
GB:JD
JD Sports Fashion
85.16
-35.43
-29.38%

Frasers Group Corporate Events

M&A TransactionsBusiness Operations and Strategy
Frasers Group Completes Holdsport Acquisition
Positive
May 16, 2025

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.

Regulatory Filings and Compliance
Frasers Group Updates Shareholder Voting Rights
Neutral
May 1, 2025

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.

Business Operations and Strategy
Frasers Group Expands Sports Direct into Australasia with Accent Partnership
Positive
Apr 15, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Frasers Group Expands Stake in Hugo Boss with Strategic Investment
Positive
Apr 2, 2025

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.

Regulatory Filings and Compliance
Frasers Group Updates on Voting Rights and Share Capital
Neutral
Apr 1, 2025

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.

Business Operations and Strategy
Frasers Group Expands Sports Direct into Southeast Asia and India
Positive
Mar 24, 2025

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.

Regulatory Filings and Compliance
Frasers Group Announces Updated Voting Rights and Capital Structure
Neutral
Mar 3, 2025

Frasers Group PLC has announced the total number of voting rights and capital in the company as of the end of February 2025. The company has issued 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 determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and Strategy
Frasers Group Partners with GMG for Gulf and Egypt Expansion
Positive
Feb 27, 2025

Frasers Group has announced a strategic partnership with GMG to expand its retail presence in the Gulf region and Egypt, with plans to open 50 new Sports Direct stores over the next five years. This partnership leverages GMG’s extensive market knowledge and distribution capabilities, aiming to strengthen Frasers’ position in the sports retail industry and enhance its growth potential in these regions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.