Frasers Group (FRAS) AI Stock Analysis

• Market Cap: £2.99B
• Dividend Yield: N/A
• Average Volume (3M): 180.82K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.03
• Revenue Growth: -6.82%
• EPS Growth: -37.46%
• Country: UK
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Specialty Retail
• EPS (TTM): 0.71
• Shares Outstanding: 450,316,040
• 10 Day Avg. Volume: 197,960
• 30 Day Avg. Volume: 180,821
• PEG Ratio: -0.31
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.90
• 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: £1,037.50
• Price Target Upside: 47.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• 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 Business Overview & Revenue Model

Company Description

Frasers 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 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 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

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
5.54B	5.56B	4.69B	3.51B	3.96B
	Gross Profit
2.40B	2.37B	2.04B	1.48B	1.37B
	EBIT
520.60M	339.70M	450.80M	200.90M	165.70M
	EBITDA
883.10M	976.20M	609.70M	337.30M	478.00M
	Net Income Common Stockholders
380.80M	491.70M	249.80M	-83.00M	93.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
358.60M	332.90M	336.80M	457.00M	534.00M
	Total Assets
4.45B	4.29B	4.14B	3.79B	3.87B
	Total Debt
1.45B	1.43B	1.45B	1.43B	1.52B
	Net Debt
1.09B	1.10B	1.11B	971.60M	990.10M
	Total Liabilities
2.58B	2.63B	2.83B	2.57B	2.59B
	Stockholders Equity
1.84B	1.62B	1.29B	1.19B	1.27B
Cash Flow		Free Cash Flow
415.00M	44.90M	159.20M	276.50M	45.20M
	Operating Cash Flow
682.20M	514.30M	482.40M	496.90M	368.70M
	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 Price: 705.00
• 50DMA: Positive
• 100DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETS	78 Outperform	£1.18B	13.48	9.37%	5.01%	2.78%	11.20%
JD	77 Outperform	£4.79B	9.79	18.22%	1.12%	2.85%	61.98%
DNLM	76 Outperform	£2.39B	15.84	84.81%	6.72%	3.07%	1.42%
CURY	74 Outperform	£1.37B	6.94	2.95%	―	-10.46%	396.13%
SMWH	72 Outperform	£1.33B	204.65	2.46%	3.19%	4.46%	-89.55%
FRAS	69 Neutral	£2.99B	10.05	16.46%	―	-6.82%	-37.46%
Sector *	62 Neutral	$6.88B	11.26	2.78%	3.93%	2.65%	-22.00%

Frasers Group Corporate Events

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.

Frasers Group Announces Updated Voting Rights and Capital Structure

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.

Frasers Group Partners with GMG for Gulf and Egypt Expansion

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.