Frasers Group (FRAS) AI Stock Analysis

• Market Cap: £2.93B
• Dividend Yield: N/A
• Average Volume (3M): 120.20K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.02
• Revenue Growth: -11.05%
• EPS Growth: -24.53%
• Country: UK
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 0.30
• Shares Outstanding: 450,316,040
• 10 Day Avg. Volume: 92,967
• 30 Day Avg. Volume: 120,197
• 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: £871.25
• Price Target Upside: 34.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: 776.00p ▲(19.66% 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

Earnings Performance

Frasers reported a strong gross margin performance and cost savings delivered, leading to a solid H2 trading trend improvement.

International Expansion

Frasers Group has been making rapid progress overseas, with recent deals in regions such as ANZ, MENA, Southern Europe, Africa, and South 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

Earnings Impact

The acquisition of XXL is expected to have some near-term impact on earnings due to the pressure on the business.

Premium Lifestyle Revenue

Revenue declined in Premium Lifestyle due to the rationalization of HoF and JD fascias.

Stock Valuation

The price target has been lowered from 1,200p to 1,100p, suggesting a reassessment of the stock's potential value.

Frasers Group Business Overview & Revenue Model

Company Description

Frasers Group (FRAS) is a leading British retail and intellectual property group, primarily operating in the sports, fitness, lifestyle, and luxury sectors. The company owns and manages a diverse portfolio of brands, including Sports Direct, House of Fraser, Flannels, and Evans Cycles, among others. Frasers Group is known for its expansive network of retail stores and its growing e-commerce presence, providing customers with a wide range of sports equipment, apparel, footwear, and lifestyle products.

How the Company Makes Money

Frasers 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 with a strong equity base and robust cash flow generation. However, the decline in net profit margin and revenue growth are concerns. The company's strong operating cash flow and improved EBIT margin are positives.

Income Statement

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	5.54B	5.56B	4.69B	3.51B
Gross Profit	2.31B	2.40B	2.37B	2.04B	1.48B
EBITDA	778.70M	883.10M	976.20M	609.70M	337.30M
Net Income	292.10M	380.80M	491.70M	249.80M	-83.00M
Balance Sheet
Total Assets	5.13B	4.45B	4.29B	4.14B	3.79B
Cash, Cash Equivalents and Short-Term Investments	252.20M	358.60M	332.90M	336.80M	457.00M
Total Debt	1.86B	1.45B	1.43B	1.45B	1.43B
Total Liabilities	3.14B	2.58B	2.63B	2.83B	2.57B
Stockholders Equity	1.96B	1.84B	1.62B	1.29B	1.19B
Cash Flow
Free Cash Flow	531.70M	415.00M	44.90M	159.20M	276.50M
Operating Cash Flow	943.40M	682.20M	514.30M	482.40M	496.90M
Investing Cash Flow	-1.21B	-387.40M	-201.40M	-123.50M	-289.90M
Financing Cash Flow	161.90M	-297.60M	-320.40M	-479.20M	-278.70M

Frasers Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 648.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 648.5 is below the 20-day moving average (MA) of 681.35, below the 50-day MA of 677.28, and below the 200-day MA of 657.81, indicating a bearish trend. The MACD of -2.06 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 6.68 is Positive, 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
JD	78 Outperform	£4.86B	10.11	18.22%	1.03%	8.69%	-9.09%
DNLM	73 Outperform	£2.42B	15.98	84.81%	3.43%	3.07%	1.42%
PETS	71 Outperform	£1.01B	11.76	8.90%	5.76%	0.37%	15.14%
FRAS	69 Neutral	£2.93B	10.11	15.02%	―	-11.05%	-24.53%
CURY	69 Neutral	£1.23B	11.24	5.01%	1.36%	2.71%	-34.19%
Sector *	61 Neutral	$17.87B	13.25	-4.92%	3.05%	1.25%	-14.67%
SMWH	55 Neutral	£859.47M	133.72	2.46%	4.07%	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.