IG Design (IGR) AI Stock Analysis

• Market Cap: £52.88M
• Dividend Yield: N/A
• Average Volume (3M): 105.81K
• Price to Earnings (P/E): 4.8
• Beta (1Y): <0.01
• Revenue Growth: -10.23%
• EPS Growth: -380.84%
• Country: UK
• Employees: 2,766
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Specialty Retail
• EPS (TTM): -0.86
• Shares Outstanding: 98,308,140
• 10 Day Avg. Volume: 52,099
• 30 Day Avg. Volume: 105,812
• 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: £89.00
• Price Target Upside: 60.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: 58.00p ▲(4.50% Upside)

The overall stock score of 43 reflects significant financial and technical challenges. The company's financial performance is hindered by profitability and cash flow issues, while technical indicators show bearish momentum. The negative P/E ratio and lack of dividend yield further contribute to a challenging valuation, making it a high-risk investment.

Positive Factors

Global Manufacturing Capabilities

The company's global manufacturing capabilities allow it to produce goods cost-effectively, which can enhance profitability and provide a competitive edge in pricing and supply chain management.

Strategic Partnerships

Strategic partnerships with major retailers secure large contracts, ensuring steady demand and revenue stability, which strengthens market position and long-term business sustainability.

Product Innovation and Design

Investment in innovation and design differentiates products in a competitive market, enabling premium pricing and enhancing brand strength, which supports long-term revenue growth.

Negative Factors

Profitability Challenges

Declining profitability and negative net profit margins indicate operational inefficiencies, which can hinder long-term financial health and limit reinvestment opportunities.

Cash Flow Volatility

Volatile cash flow and negative free cash flow growth highlight challenges in cash generation, potentially impacting the company's ability to fund operations and growth initiatives.

Declining Equity

Declining equity value suggests potential financial instability and reduced shareholder value, which could limit the company's ability to attract investment and finance future growth.

IG Design Business Overview & Revenue Model

Company Description

IG Design Group plc designs, manufactures, and distributes celebrations, craft and creative play, stationery, gifting, and not for re-sale consumable products in the Americas, the United Kingdom, and internationally. It provides celebrations products, including greetings cards, gift wraps, Christmas crackers, gift bags, and partyware products, as well as gift accessories, such as tags, strings, ribbons, and bows; and gifting products comprise frames, albums, calendars and diaries, as well as food and non-food gifts. The company also offers ribbons and trims, sewing patterns, buttons, needlecrafts, and kids craft lines; stationery products, including pencils, pens, notebooks, pencil cases, clips, journals, etc. for use in education, commercial, and home settings; and bin liners, refuse sacks, food bags, and other collateral products, as well as paper twist handle bags. It serves retailers, other manufacturers and wholesalers of greetings products, service merchandisers, and trading companies. The company was formerly known as International Greetings plc and changed its name to IG Design Group plc in June 2016. IG Design Group plc was incorporated in 1978 and is based in Newport Pagnell, the United Kingdom.

How the Company Makes Money

IG Design Group generates revenue through several key streams. The primary source of income comes from the sale of its diverse product lines to retailers and wholesalers worldwide. The company strategically partners with major retailers, which helps to secure large contracts and ensure a steady demand for its products. Additionally, IGR benefits from seasonal sales spikes during holidays and special events, such as Christmas and birthdays, which significantly boost revenue. The company also invests in product innovation and design, allowing it to differentiate itself in a competitive market, thereby commanding higher prices and improving margins. Furthermore, IGR's global manufacturing capabilities enable cost-effective production, contributing to overall profitability.

IG Design Financial Statement Overview

Summary

IG Design faces significant financial challenges, particularly in profitability and cash flow management. While revenue growth is a positive sign, the company struggles with operational efficiency and cash flow generation. The balance sheet remains relatively stable, but declining equity and negative returns are concerning. Overall, the company needs to address its profitability and cash flow issues to improve its financial health.

Income Statement

The income statement shows a concerning trend with declining profitability. The company has experienced negative net profit margins in recent years, with a significant drop in the latest year. Revenue growth was positive in the latest period, but the negative EBIT and EBITDA margins indicate operational challenges. The gross profit margin has also decreased, reflecting potential cost management issues.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio below 0.5, which is reasonable. However, the return on equity has been negative in recent years, indicating inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a balanced capital structure, but the declining equity value is a concern.

Cash Flow

Cash flow analysis shows volatility with negative free cash flow growth in the latest period. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is negative, highlighting cash flow pressures. Despite these issues, there was a positive operating cash flow, suggesting some operational cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	571.52M	729.26M	800.05M	890.31M	965.09M	873.22M
Gross Profit	82.38M	100.92M	141.52M	131.74M	122.17M	153.82M
EBITDA	-17.55M	-22.58M	59.64M	19.04M	32.60M	44.53M
Net Income	-78.48M	-99.69M	35.63M	-27.99M	-3.28M	8.21M
Balance Sheet
Total Assets	543.62M	543.62M	661.34M	618.82M	707.08M	763.25M
Cash, Cash Equivalents and Short-Term Investments	136.40M	136.40M	157.37M	85.21M	50.18M	132.76M
Total Debt	124.84M	124.84M	129.48M	114.92M	119.86M	170.23M
Total Liabilities	273.45M	273.45M	291.86M	284.44M	337.37M	371.24M
Stockholders Equity	262.89M	262.89M	361.62M	327.85M	361.71M	383.52M
Cash Flow
Free Cash Flow	-1.81M	-2.92M	67.01M	40.57M	-14.45M	56.26M
Operating Cash Flow	3.01M	3.83M	77.71M	46.40M	-5.92M	64.65M
Investing Cash Flow	1.64M	2.09M	-10.41M	2.48M	-8.39M	-8.24M
Financing Cash Flow	-13.52M	-17.17M	-24.02M	-28.28M	-33.85M	-31.63M

IG Design Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IGR, the sentiment is Negative. The current price of 55.5 is below the 20-day moving average (MA) of 58.31, below the 50-day MA of 65.25, and below the 200-day MA of 76.84, indicating a bearish trend. The MACD of -2.78 indicates Negative momentum. The RSI at 17.07 is Positive, neither overbought nor oversold. The STOCH value of 34.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IGR.

IG Design Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARD	86 Outperform	£371.66M	7.68	14.43%	4.55%	6.19%	-4.44%
ANG	66 Neutral	£38.70M	28.80	3.66%	―	11.86%	16.46%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
WRKS	57 Neutral	£30.44M	3.54	63.08%	―	-1.96%	28.69%
PROC	56 Neutral	£38.13M	38.04	11.06%	―	11.04%	64.29%
MOON	49 Neutral	£644.50M	―	890.75%	0.51%	2.62%	-129.82%
IGR	43 Neutral	£52.88M	4.82	-32.04%	―	-10.23%	-380.84%

IG Design Corporate Events

IG Design Group Faces Revenue Decline Amid US Market Challenges

IG Design Group PLC reported a 9% decline in group revenue for the fiscal year ending March 31, 2025, primarily due to challenges in the US market, including a competitive retail environment and reduced consumer demand. The company is considering strategic options for its DG Americas division, which has been affected by recent trade tariffs and customer bankruptcies, potentially including an exit from the division. Despite these challenges, DG International shows a positive outlook with opportunities for growth in new channels and product categories.

Spark’s Take on GB:IGR Stock

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

IG Design Group’s strong financial performance and favorable valuation are major strengths, countered by bearish technical indicators. Recent corporate events, like asset sales and increased investor stake, add positive momentum. However, revenue growth challenges and lack of earnings call data slightly temper the outlook.

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

IG Design Group Announces Change in Major Shareholder Holdings

IG Design Group PLC has announced a change in its major holdings, as Canaccord Genuity Group Inc., based in Vancouver, Canada, has adjusted its voting rights in the company. The notification indicates a slight decrease in Canaccord’s voting rights from 14.0419% to 13.9872%, which may impact the company’s shareholder dynamics and influence future decision-making processes.

Spark’s Take on GB:IGR Stock

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

IG Design Group shows strong financial fundamentals and attractive valuation, which are offset by weak technical indicators suggesting bearish momentum. The company’s strategic asset sale and investor confidence provide additional support but are not factored into the score directly due to redundancy with earnings call analysis.

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

IG Design Group Sees Change in Major Shareholder Holdings

IG Design Group PLC has announced a change in its major holdings, with Canaccord Genuity Group Inc. now holding 14.0419% of the voting rights, up from 13.9448%. This adjustment in holdings reflects an acquisition or disposal of voting rights, indicating a strategic move by Canaccord Genuity to increase its influence within the company. The change in voting rights could potentially impact IG Design’s strategic decisions and stakeholder interests moving forward.

IG Design Group Announces Change in Major Holdings

IG Design Group PLC announced a change in its major holdings, with Canaccord Genuity Group Inc. now holding 13.9448% of voting rights, down from a previous position of 14.9779%. This adjustment in holdings could impact the company’s shareholder dynamics and influence future corporate decisions, reflecting a slight shift in the company’s ownership structure.

IG Design Group Announces Change in Major Shareholder Voting Rights

IG Design Group PLC announced a change in the voting rights held by Octopus Investments Limited, which now holds 9.97% of the voting rights, down from a previous 10.99%. This adjustment in shareholding could influence the company’s strategic decisions and impact its market positioning, as it reflects a shift in stakeholder influence.

IG Design Group Sells Distribution Facility, Realizes $4.9 Million Profit

IG Design Group PLC has announced the completion of the sale of its former distribution facility in Bloomsburg, Pennsylvania, by its subsidiary Berwick Offray LLC to Union PA Holdings LLC Limited for $8.4 million. This transaction results in a profit of $4.9 million for the company, indicating a strategic move to optimize its asset portfolio and enhance financial performance.

IG Design Group Completes Sale of Distribution Facility for $8.4 Million

IG Design Group PLC announced the completion of the sale of its former distribution facility in Bloomsburg, Pennsylvania, by its subsidiary Berwick Offray LLC, to Union PA Holdings LLC Limited for $8.4 million. The transaction results in a profit of $4.9 million for the company, which may positively impact its financial position and strategic operations.