tiprankstipranks
Trending News
More News >
Thg Plc (GB:THG)
:THG
Advertisement

THG (THG) AI Stock Analysis

Compare
152 Followers

Top Page

GB:THG

THG

(LSE:THG)

Rating:56Neutral
Price Target:
31.00p
▲(2.79% Upside)
THG's overall stock score is driven by significant financial challenges and valuation concerns, offset by positive corporate events and some technical momentum. The company's strategic moves to reduce debt and return to revenue growth are promising, but financial stability remains a key risk.
Positive Factors
Debt Refinancing
The refinancing will see over £200m of gross debt removed from the balance sheet and maturity dates extended to December 2029.
Market Expansion
A key driver of revenue and brand awareness is the success of offline/licensing channels, with new listings in EU and Asia, and a significant increase in US doors expected.
Revenue Growth
THG has provided a solid trading update, with Q2 cc revenue returning to growth, underpinned by marked improvements in both Beauty and Nutrition.
Negative Factors
Commodity Prices
Impacts of tariffs and continued elevated whey price are reflected in the updated numbers.
External Offer
THG received an unsolicited proposal to acquire Myprotein, indicating interest from external investors.
Investor Sentiment
The proposal was considered to fundamentally undervalue Myprotein.

THG (THG) vs. iShares MSCI United Kingdom ETF (EWC)

THG Business Overview & Revenue Model

Company DescriptionTHG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally. The company operates pure-play sites, such as Lookfantastic, Cult Beauty, and Dermstore that offers approximately 1,300 premium brands across the skincare, haircare, cosmetics, and fragrance categories; Myprotein, a D2C sport nutrition provider that offers products across various categories, including vegan, protein, vitamin, athleisure, and healthy snacks; and THG Ingenuity, an end-to-end platform that powers businesses and brands, which offers hosting, analytics, fraud detection, logistics, and warehousing services, as well as digital brand management, including marketing, translation, and global customer services. It also engages in the online beauty and haircare businesses; and provision of skincare, haircare and cosmetics products. In addition, the company operates THG OnDemand, which offers entertainment products and subscription services for clothing, gadgets, and vinyl; THG Experience that comprises of Three luxury event spaces, including King Street Townhouse Hotel, Great John Street Hotel, and Hale Country Club & Spa; and THG Luxury, which operates various websites that retails fashion and lifestyle brands. Further, it operates hairdressing salons and hotels; offers website development, franchising and consultancy, warehouse and distribution, environmental consulting, translation and interpretation, web hosting, and marketing services; distributes motion pictures; processes films; recovers sorted metals; and produces visual content. The company was formerly known as THG Holdings plc and changed its name to THG Plc in January 2021. THG Plc was founded in 2004 and is based in Manchester, the United Kingdom.
How the Company Makes MoneyTHG generates revenue through multiple streams, primarily by selling its own branded products directly to consumers via its e-commerce platforms. The THG Beauty division offers a wide array of cosmetics and skincare products, while THG Nutrition focuses on health and wellness supplements. In addition to product sales, THG Ingenuity provides end-to-end e-commerce solutions to third-party brands, enabling them to scale their digital operations through a suite of services including web development, digital marketing, and logistics. This B2B service model is a critical revenue driver, as it allows THG to monetize its technological infrastructure and expertise. Furthermore, strategic acquisitions and partnerships with other companies expand THG's product offerings and market reach, contributing to its overall financial performance.

THG Financial Statement Overview

Summary
THG is facing significant financial challenges, with declining revenues and high leverage. Despite improvements in cash flow management, the company's path to sustainable profitability is uncertain.
Income Statement
45
Neutral
THG has faced substantial challenges in maintaining profitability, as reflected by negative net income margins over recent years. The revenue has declined from 2023 to 2024 by 14.3%, and a negative EBIT margin further underscores operational challenges. The company has seen inconsistent gross profit margins, indicating difficulties in cost management. While there are signs of improvement in EBITDA margins compared to 2023, overall performance remains fragile.
Balance Sheet
50
Neutral
The balance sheet shows a high debt-to-equity ratio of 2.11 in 2024, suggesting significant leverage which may pose risks. The equity ratio has decreased to 12.0%, indicating reduced financial stability. Return on Equity (ROE) remains negative due to persistent net losses. Despite these challenges, the company has managed to reduce net debt, pointing to some improvement in financial management.
Cash Flow
55
Neutral
THG's cash flow statement reveals a positive growth trend in free cash flow, improving from a small positive value in 2023 to 28.99 million in 2024. The operating cash flow to net income ratio suggests that cash flows are more stable than net income figures would suggest. However, the free cash flow to net income remains low, indicating potential issues with converting earnings into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.75B2.05B2.24B2.18B1.61B
Gross Profit693.60M840.29M771.00M855.37M655.91M
EBITDA-48.64M42.42M-289.44M32.07M-376.33M
Net Income-326.14M-248.37M-539.96M-138.07M-532.63M
Balance Sheet
Total Assets2.55B2.78B3.09B3.42B2.45B
Cash, Cash Equivalents and Short-Term Investments309.35M416.16M473.78M536.83M773.58M
Total Debt645.94M995.01M1.01B839.04M762.34M
Total Liabilities2.24B1.76B1.79B1.67B1.30B
Stockholders Equity305.83M1.02B1.30B1.76B1.14B
Cash Flow
Free Cash Flow28.99M16.15M-164.27M-190.88M-198.98M
Operating Cash Flow60.70M141.81M12.15M-1.71M40.39M
Investing Cash Flow-92.11M-77.14M-182.11M-959.06M-351.32M
Financing Cash Flow-22.91M-122.29M106.92M724.01M772.28M

THG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price30.16
Price Trends
50DMA
29.30
Positive
100DMA
29.34
Positive
200DMA
35.76
Negative
Market Momentum
MACD
0.06
Positive
RSI
48.35
Neutral
STOCH
22.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THG, the sentiment is Neutral. The current price of 30.16 is below the 20-day moving average (MA) of 31.59, above the 50-day MA of 29.30, and below the 200-day MA of 35.76, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 22.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:THG.

THG Risk Analysis

THG disclosed 12 risk factors in its most recent earnings report. THG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

THG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
£362.38M7.5014.43%4.74%6.19%-4.44%
57
Neutral
HK$24.67B3.83-3.22%5.89%0.28%-59.63%
56
Neutral
£471.67M-27.20%-14.37%-28.78%
55
Neutral
£507.48M48.096.87%9.45%-57.24%
51
Neutral
£370.57M-62.59%-15.86%-18.46%
48
Neutral
£209.32M-96.36%-16.32%-202.39%
48
Neutral
£682.03M890.75%0.48%2.62%-129.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:THG
THG
30.58
-29.97
-49.50%
GB:ASC
ASOS plc
310.50
-41.10
-11.69%
GB:CARD
Card Factory
103.20
-9.34
-8.30%
GB:DEBS
boohoo group Plc
16.26
-11.66
-41.76%
GB:AO
AO World
89.20
-21.40
-19.35%
GB:MOON
Moonpig Group Plc
208.50
1.42
0.69%

THG Corporate Events

M&A TransactionsBusiness Operations and Strategy
THG PLC Divests Claremont Ingredients for £103 Million
Positive
Aug 6, 2025

THG PLC has announced the sale of Claremont Ingredients, a UK-based flavour manufacturing and development laboratory, to Nactarome Group for approximately £103 million. This move aligns with THG’s strategy to simplify its operations and achieve a net cash balance sheet. The sale represents a significant return on investment, as Claremont was originally acquired for £52 million in 2020. Financially, the disposal will aid in reducing THG’s net leverage and borrowing costs. Operationally, the relationship with Claremont will continue through a long-term supply contract, ensuring Myprotein’s flavour capabilities remain robust. The transaction is expected to impact THG’s EBITDA in the coming years, but the company anticipates double-digit revenue growth for THG Nutrition in the second half of 2025, driven by stable whey prices and strategic pricing approaches to enhance market share.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
THG PLC Sells Claremont Ingredients to Nactarome Group for £103 Million
Neutral
Aug 6, 2025

THG PLC has announced the sale of Claremont Ingredients, a UK-based flavour manufacturing and development laboratory, to Nactarome Group for approximately £103 million. This divestment aligns with THG’s strategy to simplify its operations and achieve a net cash balance sheet. The sale represents a significant return on investment, as Claremont was acquired for £52 million in 2020. Financially, the disposal will help reduce THG’s net leverage and borrowing costs, although it is expected to decrease the Group’s EBITDA for FY 2025 and FY 2026 by £5 million and £10 million, respectively. The strategic move is part of THG’s broader plan to focus on core strengths and market share growth, particularly for its Myprotein brand, which is expected to see double-digit revenue growth in the second half of 2025.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Executive/Board Changes
THG PLC Announces Changes to Board Committee Roles
Neutral
Jul 9, 2025

THG PLC has announced changes to its Board Committee memberships. Milyae Park, an independent Non-Executive Director, has been appointed to the Audit and Risk Committees and the Sustainability Committee. Additionally, Helen Jones, another independent Non-Executive Director, will now serve as the designated Non-Executive Director for workforce engagement. These changes are expected to enhance the company’s governance and engagement with its workforce, potentially impacting its operational efficiency and stakeholder relations.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
THG PLC Announces Successful AGM Resolutions
Positive
Jun 25, 2025

THG PLC, a company operating in the e-commerce and technology sector, announced the successful passage of all resolutions at its recent Annual General Meeting. The resolutions, which included both ordinary and special resolutions, were approved by the required majorities, indicating strong shareholder support. This outcome reflects positively on THG’s governance and strategic direction, potentially reinforcing its market position and stakeholder confidence.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
THG PLC Returns to Revenue Growth in Q2 2025
Positive
Jun 25, 2025

THG PLC has reported a return to revenue growth in the second quarter of 2025, maintaining its full-year guidance. The Beauty division showed improvement, with a smaller revenue decline compared to the first quarter, driven by strong performance in the UK. The Nutrition segment experienced significant growth, with Myprotein expanding its offline presence globally, including notable retail partnerships in the US, Europe, and Asia. This expansion is expected to boost brand awareness and sales, despite challenges such as elevated milk and whey prices.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.45 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Business Operations and Strategy
Frasers Group Increases Stake in THG PLC
Neutral
Jun 5, 2025

THG PLC, a UK-based company, has announced a change in its major holdings as Frasers Group Plc has increased its voting rights in the company. The acquisition has resulted in Frasers Group holding 12.61% of the voting rights, up from 11.07%, indicating a strategic move by Frasers Group to strengthen its influence within THG. This change in holdings could have implications for THG’s governance and strategic direction, reflecting Frasers Group’s growing interest and potential influence in the company’s future operations.

The most recent analyst rating on (GB:THG) stock is a Buy with a £75.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Shareholder Meetings
THG PLC Announces Annual General Meeting Details
Neutral
May 23, 2025

THG PLC has announced the publication of its Notice of Annual General Meeting (AGM) and associated Form of Proxy, which have been distributed to shareholders. The AGM is scheduled to take place on June 25, 2025, at THG Studios, with details on participation and resolutions available in the notice. This announcement ensures transparency and shareholder engagement, reinforcing THG’s commitment to corporate governance.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 06, 2025