Shoe Zone (SHOE) AI Stock Analysis

• Market Cap: £45.07M
• Dividend Yield: 17.85%
• Average Volume (3M): 14.06K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.54
• Revenue Growth: -6.24%
• EPS Growth: -82.21%
• Country: UK
• Employees: 2,374
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.05
• Shares Outstanding: 46,226,830
• 10 Day Avg. Volume: 21,627
• 30 Day Avg. Volume: 14,061
• PEG Ratio: -0.13
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.39
• 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: £110.00
• Price Target Upside: 12.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: 105.00p ▲(7.69%Upside)

Shoe Zone's overall score reflects a challenging financial landscape with declining revenue and profitability. Technical indicators point to short-term bearish momentum, while fair valuation and negative corporate events further weigh on the score. Improvement in revenue and cash flow generation is crucial for future performance, alongside strategic adaptation to digital opportunities.

Shoe Zone Business Overview & Revenue Model

Company Description

Shoe Zone (SHOE) is a leading footwear retailer in the United Kingdom, specializing in affordable, high-quality shoes and accessories for men, women, and children. The company operates a wide network of physical retail stores and an online platform, offering a diverse range of products that cater to various customer preferences and needs. Shoe Zone focuses on delivering value through a combination of competitive pricing, wide product assortment, and convenient shopping experiences.

How the Company Makes Money

Shoe Zone makes money primarily through the sale of footwear and related accessories via its extensive network of retail stores and its online platform. The company's revenue model is centered around offering competitively priced products, which attracts a broad customer base looking for value-for-money footwear options. Key revenue streams include in-store sales, online sales, and occasional promotions or discounts that drive volume. Shoe Zone's earnings are also influenced by its strategic sourcing and supply chain efficiencies, which help maintain low costs and attractive pricing. The company may engage in partnerships with suppliers to secure exclusive products or favorable terms, contributing further to its financial performance.

Shoe Zone Financial Statement Overview

Summary

Shoe Zone shows a steady financial performance with some challenges. The income statement reveals declining revenue and net profit margins, although EBIT and EBITDA margins remain healthy. The balance sheet is stable but slightly leveraged, with a strong ROE of 22.7%. Cash flow is cautious, with a significant decline in free cash flow growth. Improvement in revenue growth and cash flow generation is necessary to enhance financial stability.

Income Statement

Shoe Zone has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 22.0%, which is stable but slightly below the previous year's 24.7%. The net profit margin has decreased to around 4.6% from 8.0% in the prior year, indicating reduced profitability. Revenue declined by about 2.6% year-over-year, which is a point of concern. However, the EBIT and EBITDA margins remain healthy at approximately 7.0% and 18.1% respectively, though both have declined year-over-year. The company should focus on improving revenue growth and maintaining profitability.

Balance Sheet

The balance sheet highlights a stable but slightly leveraged position for Shoe Zone. The debt-to-equity ratio is approximately 1.07, indicating a moderate level of leverage. Return on equity (ROE) stands at roughly 22.7%, which is strong and suggests effective utilization of equity. The equity ratio is about 32.5%, showing a solid but not overly conservative financial structure. Continued focus on debt management and improving equity levels could enhance financial stability.

Cash Flow

Shoe Zone's cash flow statement presents a cautious outlook. The free cash flow growth rate has significantly declined by approximately 62.4%, reflecting reduced cash generation capacity. The operating cash flow to net income ratio is 2.85, indicating strong cash flow relative to earnings. However, the free cash flow to net income ratio is 1.29, which, while positive, shows a decrease from previous efficiency levels. The company needs to focus on improving free cash flow generation to bolster its cash position.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	161.32M	165.66M	156.16M	119.14M	122.57M
Gross Profit	35.52M	40.85M	36.40M	32.90M	12.28M
EBITDA	29.21M	33.70M	30.78M	29.67M	14.81M
Net Income	7.42M	13.22M	10.85M	7.01M	-11.90M
Balance Sheet
Total Assets	100.55M	98.84M	101.57M	97.93M	107.67M
Cash, Cash Equivalents and Short-Term Investments	3.64M	16.35M	24.43M	19.02M	13.27M
Total Debt	34.96M	35.29M	35.84M	47.38M	64.39M
Total Liabilities	67.91M	65.49M	64.33M	74.52M	95.27M
Stockholders Equity	32.64M	33.35M	37.24M	23.42M	12.40M
Cash Flow
Free Cash Flow	9.61M	25.56M	24.55M	27.90M	12.23M
Operating Cash Flow	21.11M	36.93M	29.77M	29.30M	15.04M
Investing Cash Flow	-11.51M	-10.89M	-1.64M	-1.41M	-2.81M
Financing Cash Flow	-22.32M	-34.11M	-22.20M	-22.64M	-10.72M

Shoe Zone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHOE, the sentiment is Negative. The current price of 97.5 is below the 20-day moving average (MA) of 103.42, below the 50-day MA of 104.17, and below the 200-day MA of 114.14, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 30.28 is Neutral, neither overbought nor oversold. The STOCH value of 29.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SHOE.

Shoe Zone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	74 Outperform	£1.28B	12.22	5.01%	―	-10.46%	396.13%
DOCS	68 Neutral	£758.13M	167.66	1.23%	2.17%	-10.20%	-93.32%
MKS	66 Neutral	£6.66B	22.95	10.25%	1.57%	5.96%	-33.04%
Sector *	64 Neutral	£1.68B	10.24	6.12%	3.34%	0.55%	-32.84%
SHOE	59 Neutral	£45.07M	17.73	8.50%	17.85%	-6.24%	-82.21%
THG	58 Neutral	£490.17M	―	-27.20%	―	-14.37%	-28.78%
ASC	51 Neutral	£370.57M	―	-62.59%	―	-15.86%	-18.46%

Shoe Zone Corporate Events

Shoe Zone Reports Revenue Decline Amid Store Closures and Weak Consumer Confidence

Shoe Zone PLC reported a 6.5% decline in total revenue to £71.5 million for the first half of 2025, attributed to the closure of 31 stores. Despite this, digital revenue saw a 6.4% increase, driven by enhancements such as free next day delivery. The company faced a loss before tax of £2.3 million, contrasting with a profit in the previous year, due to weak consumer confidence and unseasonal weather. Shoe Zone is continuing its strategy to convert stores to a new format and expand its digital offerings, aiming for a total of 260 stores. The company has also revised its full-year profit forecast down to £5.0 million, reflecting ongoing challenging trading conditions.