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Revolution Beauty Group plc (GB:REVB)
LSE:REVB

Revolution Beauty Group plc (REVB) AI Stock Analysis

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Revolution Beauty Group plc

(LSE:REVB)

59Neutral
Revolution Beauty Group plc's stock score is driven by a promising recovery in profitability and cash flow, yet hampered by high financial leverage and weak equity structure. Technical indicators suggest moderate short-term strength, but valuation metrics reveal overvaluation concerns. The balance between potential growth and financial risk is critical.

Revolution Beauty Group plc (REVB) vs. S&P 500 (SPY)

Revolution Beauty Group plc Business Overview & Revenue Model

Company DescriptionRevolution Beauty Group plc (REVB) is a UK-based beauty and personal care company that operates in the cosmetics industry. The company specializes in providing a wide range of beauty products, including makeup, skincare, and haircare items. Revolution Beauty is known for its innovative and affordable offerings, catering to a diverse customer base by emphasizing inclusivity and accessibility in its product lines. The company markets its products under several brands, such as Revolution, Revolution PRO, and I Heart Revolution, and distributes them through various channels including online platforms and physical retail partners worldwide.
How the Company Makes MoneyRevolution Beauty Group plc generates revenue primarily through the sale of its beauty and personal care products. The company's key revenue streams include direct-to-consumer sales via its e-commerce website and mobile app, wholesale distribution to major retail partners, and collaborations with international distributors. Revolution Beauty leverages its strong online presence and digital marketing strategies to drive sales growth. Additionally, the company benefits from strategic partnerships with retailers and influencers, which help expand its market reach and enhance brand visibility. The focus on affordable pricing, trend-driven product launches, and a diverse product portfolio further contribute to its revenue generation.

Revolution Beauty Group plc Financial Statement Overview

Summary
Revolution Beauty Group plc exhibits a promising recovery with improvements in profitability and cash flow. Despite these gains, the balance sheet's high leverage and low equity raise concerns about financial stability. Continued positive revenue and margin trends provide a foundation for potential growth, but financial risks due to leverage must be cautiously managed.
Income Statement
72
Positive
Revolution Beauty Group plc showed an improvement in financial performance with revenue growth of 1.83% annually. The gross profit margin improved to 46.2% from 40.4% the previous year, indicating better cost management. Net profit margin turned positive at 5.6% from a negative margin last year, reflecting a turnaround in profitability. EBIT and EBITDA margins also turned positive, marking a significant recovery in operational efficiency.
Balance Sheet
45
Neutral
The company's balance sheet reflects a challenging financial structure with a very high debt-to-equity ratio of 203.15, indicating heavy reliance on debt financing. Stockholders' equity remains low, contributing to a weak equity ratio of 0.15%. Return on equity (ROE) is positive at 6011.24%, driven by net income recovery, but the low equity base limits financial flexibility.
Cash Flow
68
Positive
Cash flow statements show a positive shift with free cash flow turning positive at £1.98 million from a negative figure the previous year. The operating cash flow to net income ratio is 0.61, indicating moderate cash generation relative to net income. However, continued investment in capital expenditure reflects ongoing growth initiatives.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Dec 2019
Income StatementTotal Revenue
223.76M191.29M187.84M184.58M157.64M136.52M
Gross Profit
88.77M88.36M75.88M71.03M68.22M60.00M
EBIT
-3.48M4.33M-30.58M-13.55M-10.55M-1.29M
EBITDA
-2.35M19.69M-20.28M-32.19M3.58M10.21M
Net Income Common Stockholders
4.63M10.70M-33.65M-43.72M-17.85M-8.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.64M8.64M11.04M15.62M5.58M8.88M
Total Assets
119.05M119.05M131.40M139.22M136.95M134.60M
Total Debt
36.16M36.16M34.73M28.20M80.71M71.99M
Net Debt
27.52M27.52M23.69M12.58M75.13M63.12M
Total Liabilities
118.87M118.87M144.54M118.20M147.84M127.99M
Stockholders Equity
178.00K178.00K-13.13M21.02M-10.89M6.61M
Cash FlowFree Cash Flow
5.78M1.98M-8.57M-26.77M-10.61M-21.09M
Operating Cash Flow
11.73M6.52M-61.00K-18.73M-4.00K-1.16M
Investing Cash Flow
-6.35M-4.53M-8.51M-15.17M-10.61M-19.94M
Financing Cash Flow
-5.34M-4.72M4.70M44.13M7.44M26.87M

Revolution Beauty Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.70
Price Trends
50DMA
12.08
Negative
100DMA
13.27
Negative
200DMA
16.06
Negative
Market Momentum
MACD
-0.21
Positive
RSI
38.99
Neutral
STOCH
11.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:REVB, the sentiment is Negative. The current price of 11.7 is below the 20-day moving average (MA) of 12.87, below the 50-day MA of 12.08, and below the 200-day MA of 16.06, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:REVB.

Revolution Beauty Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBNXT
83
Outperform
£13.48B18.7946.76%1.87%11.42%-7.03%
GBBWY
65
Neutral
£2.72B18.514.22%2.36%-11.63%-31.81%
60
Neutral
£5.40B39.392.25%5.62%2.66%80.49%
59
Neutral
£37.38M
-14.61%97.35%
59
Neutral
$11.53B10.43-0.22%4.02%1.19%-15.83%
GBTPT
54
Neutral
£60.97M-90.54%7.57%-4.17%-506.75%
48
Neutral
£272.89M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:REVB
Revolution Beauty Group plc
11.78
-22.17
-65.30%
GB:DEBS
boohoo group Plc
20.90
-13.32
-38.92%
GB:NXT
Next plc
11,730.00
2,982.62
34.10%
GB:SBRY
J Sainsbury plc
242.60
-5.02
-2.03%
GB:BWY
Bellway
2,344.00
-139.08
-5.60%
GB:TPT
Topps Tiles
31.00
-8.15
-20.82%

Revolution Beauty Group plc Corporate Events

Regulatory Filings and Compliance
UBS Reduces Stake in Revolution Beauty Group PLC
Neutral
Mar 12, 2025

Revolution Beauty Group PLC, a company involved in the beauty industry, has experienced a significant change in its shareholder structure. UBS Group AG’s trading book holdings in Revolution Beauty Group PLC have fallen below the 5% threshold, resulting in a reduction of their voting rights to 0%. This change exempts them from further reporting obligations, potentially impacting the company’s market dynamics and stakeholder interests.

Regulatory Filings and Compliance
Revolution Beauty Updates Share Capital and Voting Rights
Neutral
Feb 28, 2025

Revolution Beauty Group plc announced that as of 28 February 2025, its issued share capital comprises 319,235,571 ordinary shares, each with voting rights. This update is crucial for shareholders to determine their interest in the company, affecting their voting power and potential influence in corporate decisions.

Business Operations and StrategyRegulatory Filings and Compliance
UBS Holdings in Revolution Beauty Drop Below Reporting Threshold
Neutral
Feb 24, 2025

Revolution Beauty Group PLC announced that UBS Group AG’s trading book holdings in the company have fallen below the 5% threshold, exempting them from further reporting obligations. This change in holdings could impact the company’s market dynamics and shareholder composition, which may influence future strategic decisions and stakeholder interests.

M&A Transactions
UBS Acquires Significant Stake in Revolution Beauty
Neutral
Feb 21, 2025

Revolution Beauty Group PLC announced a significant change in its voting rights structure, with UBS Group AG acquiring a 6.35% stake as of February 18, 2025. This acquisition marks a notable shift in shareholder dynamics, potentially impacting the company’s decision-making processes and signaling increased interest from investors in the beauty and cosmetics industry.

Regulatory Filings and Compliance
Revolution Beauty Group Announces Share Capital Update
Neutral
Jan 31, 2025

Revolution Beauty Group plc has announced that as of 31 January 2025, its issued share capital consists of 319,235,571 ordinary shares, all carrying voting rights. This update is critical for shareholders as it provides the necessary denominator for calculating their shareholding interests and any changes therein, ensuring transparency and compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Other
UBS Reduces Stake in Revolution Beauty Group
Neutral
Jan 24, 2025

Revolution Beauty Group PLC has announced that UBS Group AG’s trading book holdings in the company have fallen below the 5% threshold, exempting them from reporting obligations. This change in UBS’s holdings reflects a disposal of voting rights, indicating a shift in stakeholder dynamics and potentially affecting the company’s market position and investor relations.

Business Operations and StrategyRegulatory Filings and Compliance
Revolution Beauty Sees Shift in Major Shareholding
Neutral
Jan 23, 2025

Revolution Beauty Group PLC has announced a change in major holdings, with UBS Group AG acquiring 6.53% of voting rights. This acquisition could have implications for the company’s strategic direction and shareholder dynamics, potentially affecting its market positioning and stakeholder relationships.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Revolution Beauty Restructures for Future Growth Amid FY25 Challenges
Neutral
Jan 23, 2025

In its FY25 trading update, Revolution Beauty Group announced a significant portfolio restructuring, discontinuing over 6,000 SKUs to establish a more scalable foundation for growth. Despite experiencing a 25% decline in expected net sales due to sales softness and de-stocking, the company remains confident in its future growth, with major retailer launches and new strategic initiatives planned for FY26.

Revolution Beauty Announces Total Voting Rights for 2024
Jan 2, 2025

Revolution Beauty Group plc announced its total voting rights as of 31 December 2024, stating that the company’s issued share capital comprised 319,235,571 ordinary shares with voting rights. This disclosure is in line with the FCA’s Transparency Rules, allowing shareholders to calculate their required notifications regarding any changes in their interests in the company.

Revolution Beauty Settles Dispute with Chrysalis Investments
Jan 2, 2025

Revolution Beauty Group plc announced a confidential settlement with Chrysalis Investments Limited regarding previously contested allegations. This settlement, which involved no admission of liability and a non-material payment, ensures that Chrysalis will not pursue any claims, thereby stabilizing the company’s operations and financial position.

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.