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THG
(LSE:THG)
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Rating:50Neutral
Price Target:
34.00 p
▲(11.99% Upside)
Action:Reiterated
Date:08/07/26
Overall score is held back primarily by financial quality concerns: despite a 2025 earnings rebound, operating profitability is still negative and cash flow deteriorated to negative operating and free cash flow, with leverage remaining elevated. Offsetting this, technicals show improving short-to-medium term price action versus key moving averages, and valuation appears attractive on a low P/E.
Positive Factors
Revenue rebound
A return to revenue growth and a positive net margin indicate the business can recover top-line momentum and translate it to bottom-line profit. Over 2–6 months this suggests improving demand and pricing power that can support continued recovery if sustained by marketing and fulfillment execution.
Negative Factors
Negative operating profit
Persistent negative EBIT despite net income progress indicates reliance on non-operating items or one-offs for reported profit. Long-term value relies on converting positive net income into positive operating profit; until then, core operations may not generate sufficient earnings to fund growth or reduce leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
A return to revenue growth and a positive net margin indicate the business can recover top-line momentum and translate it to bottom-line profit. Over 2–6 months this suggests improving demand and pricing power that can support continued recovery if sustained by marketing and fulfillment execution.
Read all positive factors
THG (THG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£569.85M
Dividend YieldN/A
Average Volume (3M)6.85M
Price to Earnings (P/E)8.1
Beta (1Y)1.14
Revenue Growth-1.91%
EPS GrowthN/A
CountryUK
Employees2,670
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.04
Shares Outstanding1,640,392,700
10 Day Avg. Volume6,451,997
30 Day Avg. Volume6,852,398
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.49
Price to Sales (P/S)0.37
P/FCF Ratio-45.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£60.00Price Target Upside97.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£1.80B
THG Business Overview & Revenue Model
Company Description
THG Plc operates as an online retailer in the United Kingdom, the United States, Europe, and internationally. It operates through the THG Beauty and THG Nutrition segments. The THG Beauty segment manufactures and retails skincare, haircare, cosmet...
How the Company Makes Money
THG makes money primarily through (1) direct-to-consumer product sales and (2) service/technology revenues from its e-commerce platform offerings.
1) Product sales (DTC retail): A significant portion of revenue comes from selling products online ...
THG Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong strategic focus with several positive developments such as growth in THG Nutrition, strengthening of the balance sheet, and successful disposals. However, challenges remain with group revenue decline and high input costs in Nutrition. The overall sentiment is balanced, with significant strategic achievements offset by some ongoing challenges.Positive Updates
THG Nutrition Division Growth
THG Nutrition delivered 3% revenue growth, driven by new customer acquisition and expansion of offline retail in Europe, the U.S., and Asia.
Negative Updates
Group Revenue Decline
Group revenue was GBP 783 million, down 2.6% from the prior year, largely due to strategic actions within THG Beauty.
Read all updates
Q2-2025 Updates
Positive
Negative
THG Nutrition Division Growth
THG Nutrition delivered 3% revenue growth, driven by new customer acquisition and expansion of offline retail in Europe, the U.S., and Asia.
Read all positive updates
Company Guidance
In the call, THG outlined key metrics and strategic moves that have shaped its financial performance in the first half of the fiscal year 2025. The group reported a revenue of GBP 783 million, down 2.6% from the previous year, largely due to strategic shifts within THG Beauty, including the planned discontinuation of some operations. Despite this, THG Nutrition experienced a 3% revenue growth, supported by the Myprotein global rebrand and the expansion into offline retail channels. The adjusted EBITDA for H1 stood at GBP 24 million, with an EBITDA margin of approximately 3.1%, though high input costs in Nutrition impacted margins. Additionally, THG improved its financial position by reducing gross debt by GBP 374 million and extending facilities to December 2029, further strengthened by the disposal of Claremont Ingredients for over GBP 100 million. Looking ahead, THG remains confident in its full-year guidance, bolstered by positive growth in both Beauty and Nutrition divisions and strategic actions aimed at enhancing market share and customer loyalty. The company is also exploring growth opportunities in retail media and licensing to expand its brand presence globally.THG Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
43
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.72B | 1.75B | 2.05B | 2.24B | 2.18B |
| Gross Profit | 630.76M | 693.60M | 840.29M | 771.00M | 855.37M |
| EBITDA | 54.87M | -48.64M | 42.42M | -289.44M | 32.07M |
| Net Income | 54.13M | -326.14M | -248.37M | -539.96M | -138.07M |
Balance Sheet | |||||
| Total Assets | 1.60B | 2.55B | 2.78B | 3.09B | 3.42B |
| Cash, Cash Equivalents and Short-Term Investments | 183.10M | 309.35M | 416.16M | 473.78M | 536.83M |
| Total Debt | 561.17M | 645.94M | 995.01M | 1.01B | 839.04M |
| Total Liabilities | 1.17B | 2.24B | 1.76B | 1.79B | 1.67B |
| Stockholders Equity | 425.22M | 305.83M | 1.02B | 1.30B | 1.76B |
Cash Flow | |||||
| Free Cash Flow | -14.09M | 28.99M | 16.15M | -164.27M | -190.88M |
| Operating Cash Flow | -10.06M | 96.46M | 141.81M | 12.15M | -1.71M |
| Investing Cash Flow | 33.52M | -92.11M | -77.14M | -182.11M | -959.06M |
| Financing Cash Flow | -148.98M | -22.91M | -122.29M | 106.92M | 724.01M |
THG Technical Analysis
Positive
30.36
Price Trends
31.25
Positive
32.02
Positive
36.03
Negative
Market Momentum
0.44
Negative
57.78
Neutral
37.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THG, the sentiment is Positive. The current price of 30.36 is below the 20-day moving average (MA) of 31.74, below the 50-day MA of 31.25, and below the 200-day MA of 36.03, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 37.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £4.32B | 10.24 | 15.14% | 1.35% | 10.51% | -9.26% | |
68 Neutral | £1.62B | 10.20 | 7.10% | 1.37% | 6.29% | 55.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | £3.41B | 9.26 | 15.67% | ― | 8.13% | 27.88% | |
57 Neutral | £467.23M | -2.01 | -155.17% | ― | -15.00% | 21.71% | |
50 Neutral | £569.85M | 8.06 | 12.75% | ― | -1.91% | ― | |
44 Neutral | £318.23M | -2.72 | 415.28% | ― | 16.03% | 69.69% |
* Consumer Cyclical Sector Average
GB:THG
THG
33.06
3.30
11.09%
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THG Corporate Events
Business Operations and StrategyShareholder Meetings
THG Wins Court Approval for Capital Reduction Plan
Positive
Jul 28, 2026
THG PLC has secured High Court approval for the cancellation of its share premium account and capital redemption reserve, a capital reduction that was previously endorsed by shareholders at the company’s June annual general meeting. The redu...
Business Operations and StrategyStock BuybackShareholder Meetings
THG Wins Strong Shareholder Backing as All AGM Resolutions Pass
Positive
Jun 24, 2026
THG PLC reported that shareholders at its annual general meeting approved all 21 resolutions put to a poll, including the re-election of the entire board, the remuneration report, and the reappointment of Ernst Young as auditor. The strong backin...
Business Operations and StrategyFinancial Disclosures
THG lifts growth and cash flow as Beauty and Nutrition units accelerate
Positive
Jun 24, 2026
THG reported a return to top-line growth in the first half, with group revenue up about 6.5% and adjusted EBITDA for the 12 months to May rising 36% to roughly £94m, helped by disciplined cost control and stable gross margins. Management reit...
Business Operations and StrategyFinancial Disclosures
THG lifts profitability and cash flow as beauty and nutrition divisions accelerate
Positive
Jun 24, 2026
THG PLC said it expects full-year revenue, adjusted EBITDA and cash to align with market consensus after delivering around 6.5% first-half revenue growth and at least £40m in H1 adjusted EBITDA, reversing last year’s decline. The group ...
Business Operations and StrategyFinancial Disclosures
THG Term Loan Trades Above Par, Hits Record High Since 2021
Positive
Jun 12, 2026
THG PLC reported that its €445 million Term Loan B, issued in March 2025, has traded above par for the first time and reached a record high price for any of the group’s term loans since November 2021. The move follows a series of posit...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
THG Sets June AGM to Approve Capital Reduction and Ingenuity Distribution Fix
Positive
May 22, 2026
THG PLC has published its notice of Annual General Meeting and proxy form for shareholders, with the AGM scheduled for 24 June 2026 at the company’s THG Studios site in Altrincham. The documents are available via the FCA’s National Sto...
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.