Frasers Group (FRAS) AI Stock Analysis

• Market Cap: £3.11B
• Dividend Yield: N/A
• Average Volume (3M): 142.31K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.03
• Revenue Growth: -11.05%
• EPS Growth: -24.53%
• Country: UK
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.30
• Shares Outstanding: 450,316,040
• 10 Day Avg. Volume: 189,040
• 30 Day Avg. Volume: 142,308
• 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: 21.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: 749.00p ▲(4.10% Upside)

Frasers Group's overall stock score reflects a solid financial foundation with strengths in cash flow and operational efficiency. The valuation suggests the stock is undervalued, providing potential upside. However, technical indicators show neutral to bearish trends, and challenges in revenue growth and profitability margins remain areas for improvement.

Positive Factors

Cash Generation

The company's ability to generate free cash flow indicates strong cash management, providing flexibility for reinvestment and debt reduction.

Operational Efficiency

Improving gross profit margins suggest effective cost controls, enhancing profitability and competitiveness over time.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial stability and supports long-term strategic initiatives.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding market share, which could impact long-term business sustainability.

Profitability Pressures

Declining net profit margins may limit the company's ability to reinvest in growth and maintain competitive positioning.

Earnings Decline

A significant drop in earnings per share growth can challenge investor confidence and affect the company's valuation over the medium term.

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 multiple streams, primarily from the retail sales of sports and lifestyle products across its extensive brand portfolio. Key revenue streams include sales from physical retail stores, e-commerce platforms, and outlet stores. The company capitalizes on a strong online presence to enhance its sales figures, reflecting the growing trend of online shopping. Additionally, Frasers Group benefits from strategic partnerships with various brands and suppliers, allowing it to offer exclusive products and promotions that drive customer traffic and sales. The company also invests in enhancing its retail experiences and expanding its product offerings, which contribute to customer loyalty and increased revenue over time.

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: Positive
• Last Price: 719.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 719.5 is above the 20-day moving average (MA) of 701.35, above the 50-day MA of 690.70, and above the 200-day MA of 656.35, indicating a bullish trend. The MACD of 8.80 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.44 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
JD	76 Outperform	£4.50B	9.01	16.77%	1.12%	14.60%	58.84%
DNLM	73 Outperform	£2.19B	14.09	―	3.79%	3.78%	3.44%
CURY	69 Neutral	£1.47B	13.83	4.81%	1.09%	2.71%	-34.19%
FRAS	68 Neutral	£3.11B	10.86	15.02%	―	-11.05%	-24.53%
PETS	67 Neutral	£911.51M	10.68	8.88%	6.40%	0.37%	14.78%
SMWH	55 Neutral	£847.63M	131.88	16.11%	4.10%	4.46%	-89.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.