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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)

72Outperform
Frasers Group demonstrates financial stability with strong cash flows and a solid equity base. The strategic partnerships and expansions into new markets are positive indicators of future growth. However, stalled revenue growth and technical indicators suggest caution. The stock is undervalued, but corporate events introduce some uncertainties.
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
Luxury Market Challenges
The Luxury market has continued to be challenging, and Frasers is seeing little evidence of any green shoots yet.
Trading Challenges
Trading/opex headwinds following the UK Budget see analysts lower FY25/FY26 aPBT forecasts by -5%/-10%.

Frasers Group (FRAS) vs. S&P 500 (SPY)

Frasers Group Business Overview & Revenue Model

Company DescriptionFrasers Group (FRAS) is a leading British retail and intellectual property group that operates a diverse portfolio of globally recognized sports, lifestyle, and luxury brands. The company is headquartered in Shirebrook, United Kingdom. It encompasses various sectors, including retail, wholesale, and licensing of brands across sports and fashion. Key brands within its portfolio include Sports Direct, House of Fraser, Flannels, and Jack Wills, among others.
How the Company Makes MoneyFrasers Group generates revenue primarily through its retail operations, which involve the sale of sports equipment, apparel, and fashion products across its numerous store formats and online platforms. The company's revenue streams are diversified across several brands and geographic markets, providing a mix of price points and customer demographics. In addition to direct retail sales, Frasers Group also earns income through brand licensing agreements, which allow other businesses to produce and sell products under its owned brand names, thereby earning royalties. Furthermore, the company benefits from strategic acquisitions of distressed retail brands, enhancing its portfolio and market reach. Partnerships with international suppliers and exclusive product lines contribute significantly to its earnings by ensuring a competitive product offering.

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 Price667.50
Price Trends
50DMA
625.83
Positive
100DMA
618.44
Positive
200DMA
717.36
Negative
Market Momentum
MACD
13.03
Negative
RSI
63.37
Neutral
STOCH
88.21
Negative
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 667.5 is above the 20-day moving average (MA) of 616.60, above the 50-day MA of 625.83, and below the 200-day MA of 717.36, indicating a neutral trend. The MACD of 13.03 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.21 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJD
77
Outperform
£4.12B12.8214.67%1.18%2.85%61.98%
GBNXT
76
Outperform
£14.39B20.0546.76%1.75%11.42%-7.03%
72
Outperform
£2.75B9.3716.46%-6.82%-37.46%
GBMKS
71
Outperform
£7.87B15.4217.19%0.77%6.87%22.36%
61
Neutral
$6.55B11.723.07%4.01%2.66%-21.27%
GBASC
51
Neutral
£347.11M-62.59%-15.86%-18.46%
48
Neutral
£270.32M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FRAS
Frasers Group
667.50
-150.00
-18.35%
GB:DEBS
boohoo group Plc
21.00
-13.46
-39.06%
GB:MKS
Marks and Spencer
380.70
124.77
48.75%
GB:NXT
Next plc
12,310.00
3,417.97
38.44%
GB:JD
JD Sports Fashion
79.76
-35.07
-30.54%
GB:ASC
ASOS plc
291.00
-65.00
-18.26%

Frasers Group Corporate Events

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.

Spark’s Take on GB:FRAS Stock

According to Spark, TipRanks’ AI Analyst, GB:FRAS is a Outperform.

Frasers Group demonstrates financial stability with strong cash flows and a solid equity base. The strategic partnerships and expansions into new markets are positive indicators of future growth. However, stalled revenue growth and technical indicators suggest caution. The stock is undervalued, but corporate events introduce some uncertainties.

To see Spark’s full report on GB:FRAS stock, click here.

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.

Spark’s Take on GB:FRAS Stock

According to Spark, TipRanks’ AI Analyst, GB:FRAS is a Neutral.

Frasers Group’s financial stability and undervaluation support a positive outlook, while international expansions enhance growth potential. However, technical indicators suggest caution, and recent corporate challenges could impact future performance.

To see Spark’s full report on GB:FRAS stock, click here.

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.

M&A TransactionsBusiness Operations and Strategy
Frasers Group Halts Acquisition Plan for XXL ASA
Negative
Feb 20, 2025

Frasers Group PLC announced that it will not proceed with its planned voluntary offer for XXL ASA shares it does not own, citing the inability to meet the condition of securing acceptance from a sufficient number of shareholders. This decision impacts Frasers’ expansion strategy, potentially altering its market position and influencing stakeholder expectations regarding future acquisition activities.

Regulatory Filings and Compliance
Frasers Group Updates Total Voting Rights for January 2025
Neutral
Feb 3, 2025

Frasers Group PLC has announced an update on its total voting rights as required by the FCA’s Disclosure Guidance and Transparency Rules. As of the end of January 2025, the company has 450,316,035 total voting rights, which shareholders can use to determine if they need to notify any changes in their interest in the company. This update is crucial for ensuring transparency and compliance with regulatory requirements.

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.