THG (THG) AI Stock Analysis

• Market Cap: £666.66M
• Dividend Yield: N/A
• Average Volume (3M): 6.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -20.36%
• EPS Growth: 44.33%
• Country: UK
• Employees: 6,797
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 1,640,392,700
• 10 Day Avg. Volume: 6,451,997
• 30 Day Avg. Volume: 6,852,398
• PEG Ratio: -0.07
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 21.24
• 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: £60.00
• Price Target Upside: 61.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 39.00p ▲(4.84% Upside)

THG's overall stock score reflects a mix of significant financial challenges and positive strategic developments. The financial performance is the most critical factor, with high leverage and ongoing losses weighing heavily. However, technical indicators and corporate events show positive momentum and strategic growth, providing a more optimistic outlook.

Positive Factors

Proprietary e‑commerce platform (THG Ingenuity)

THG Ingenuity is a scalable, recurring-revenue technology and services business that supports third-party brands. Its platform capability creates a structural competitive advantage by locking in clients, improving unit economics, and supporting long-term margin expansion through tech-led service offerings.

Debt reduction and extended facilities

Material gross debt reduction and extended credit facilities materially improve liquidity and refinancing risk profile. This structural repair of the balance sheet increases financial flexibility to invest in growth, reduces near-term solvency risk, and supports longer-term strategic execution.

Myprotein brand growth and offline expansion

Myprotein's rebrand and retail distribution expansion create durable growth channels beyond DTC. Winning placement in large retailers and broadening SKUs diversifies revenue sources, increases brand reach, and supports sustainable top-line growth and customer acquisition over multiple quarters.

Negative Factors

High leverage and weakened equity base

Elevated leverage and a thin equity cushion constrain strategic options and increase vulnerability to demand shocks. Persistent high debt ratios raise interest and covenant risk, limiting capital allocation flexibility and making sustained investment or acquisition-led growth more difficult without further deleveraging.

Persistent unprofitability and margin pressure

Ongoing negative profitability and volatile gross margins signal structural cost or mix issues. Without consistent margin recovery, free cash flow conversion remains fragile, hindering reinvestment and prolonging reliance on balance-sheet actions to fund operations and growth initiatives.

Revenue decline and strategic Beauty contractions

Sequential revenue decline and the deliberate withdrawal of Beauty operations reduce structural scale and customer reach in that division. While strategic, these contractions can weigh on long-term revenue sustainability and slow the recovery of corporate margins until replacement growth ramps up.

THG Business Overview & Revenue Model

Company Description

THG 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 Money

THG generates revenue primarily through direct-to-consumer sales of its own brands and products, as well as through the provision of e-commerce services to third-party brands via its THG Ingenuity platform. Key revenue streams include product sales from its various health and beauty brands, subscription services, and logistics and technology services offered to partners. Significant partnerships with established brands and retailers enhance its market reach, while its investment in technology ensures a scalable and efficient operational model that supports sustained growth and profitability.

THG Financial Statement Overview

Summary

THG is facing significant financial challenges with declining revenues, high leverage, and ongoing losses. Despite improvements in cash flow management, the company's ability to achieve sustainable profitability remains uncertain. Continued focus on reducing debt and enhancing operational efficiencies is critical.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.75B	2.05B	2.24B	2.18B	1.61B
Gross Profit	659.89M	693.60M	840.29M	771.00M	855.37M	655.91M
EBITDA	-48.37M	-48.64M	42.42M	-289.44M	32.07M	-376.33M
Net Income	-128.64M	-326.14M	-248.37M	-539.96M	-138.07M	-532.63M
Balance Sheet
Total Assets	1.62B	2.55B	2.78B	3.09B	3.42B	2.45B
Cash, Cash Equivalents and Short-Term Investments	129.41M	309.35M	416.16M	473.78M	536.83M	773.58M
Total Debt	601.39M	645.94M	995.01M	1.01B	839.04M	762.34M
Total Liabilities	1.20B	2.24B	1.76B	1.79B	1.67B	1.30B
Stockholders Equity	424.12M	305.83M	1.02B	1.30B	1.76B	1.14B
Cash Flow
Free Cash Flow	53.16M	28.99M	16.15M	-164.27M	-190.88M	-198.98M
Operating Cash Flow	70.53M	96.46M	141.81M	12.15M	-1.71M	40.39M
Investing Cash Flow	-57.14M	-92.11M	-77.14M	-182.11M	-959.06M	-351.32M
Financing Cash Flow	-66.40M	-22.91M	-122.29M	106.92M	724.01M	772.28M

THG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THG, the sentiment is Negative. The current price of 37.2 is below the 20-day moving average (MA) of 43.07, below the 50-day MA of 43.88, and above the 200-day MA of 35.56, indicating a neutral trend. The MACD of -1.61 indicates Positive momentum. The RSI at 24.48 is Positive, neither overbought nor oversold. The STOCH value of 2.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:THG.

THG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRAS	73 Outperform	£3.00B	6.44	19.54%	―	-6.43%	52.93%
CURY	73 Outperform	£1.54B	11.95	6.16%	1.18%	9.51%	-31.96%
JD	71 Outperform	£4.05B	8.28	19.64%	1.21%	14.60%	58.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	60 Neutral	£666.66M	-3.72	-18.75%	―	-20.36%	44.33%
ASC	59 Neutral	£394.75M	-1.32	-81.34%	―	-14.89%	12.08%
DEBS	46 Neutral	£321.88M	-1.61	-172.24%	―	-65.42%	27.73%

THG Corporate Events

THG Seeks London Listing for 40.6m New Shares Under Incentive Plan

THG PLC has applied to the London Stock Exchange for 40,611,605 new ordinary voting shares of £0.005 each to be admitted to trading, with admission expected on 23 January 2026. The new shares, issued under the company’s 2022 Long Term Incentive Plan overwhelmingly approved by shareholders, will rank pari passu with existing stock and increase THG’s total voting rights to 1,640,392,742, a change that shareholders must factor into regulatory disclosures regarding their holdings.

The most recent analyst rating on (GB:THG) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG Appoints New Chair of Sustainability Committee

THG PLC has announced a change in its board governance structure, appointing independent non-executive director Milyae Park as chair of its Sustainability Committee, effective 26 January 2026, with senior independent director Sue Farr remaining a committee member. The move follows a review of board committee membership and signals a renewed focus on sustainability oversight at board level, potentially influencing THG’s strategic approach to environmental, social and governance matters and providing stakeholders with a clearer view of its long-term ESG leadership framework.

The most recent analyst rating on (GB:THG) stock is a Buy with a £60.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG posts record H2 revenue as Beauty and Nutrition power return to growth

THG reported a record second-half revenue performance for 2025, with group H2 sales up 6.7% year on year, around 14% above the top end of guidance, and fourth-quarter constant currency growth accelerating to 7.0%, its strongest quarterly performance of the year. The turnaround was driven by a strong showing at THG Beauty, particularly Lookfantastic in the UK and Ireland, and continued momentum at THG Nutrition, which posted its fourth consecutive quarter of growth, helped by robust pricing, expansion into adjacent categories such as activewear and creatine, and wider offline retail distribution. Despite the drag from disposals, discontinued activities and the demerger of THG Ingenuity, the group returned to full‑year revenue growth of 2.3% after two years of decline, maintained EBITDA guidance in line with consensus, and ended the year with more than £330m in cash and available facilities. Management highlighted market share gains in UK beauty and sports nutrition, deepening brand collaborations and retail rollouts for Myprotein, and a more focused beauty strategy centred on core categories and territories, suggesting improved operational discipline, a cleaner portfolio and stronger positioning as THG enters 2026 with what it describes as high trading momentum in both Beauty and Nutrition.

The most recent analyst rating on (GB:THG) stock is a Hold with a £48.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG Confirms Total Voting Rights at Year-End 2025

THG PLC has confirmed that, as of 31 December 2025, its issued share capital comprised 1,599,781,137 ordinary shares of £0.005 each, alongside several classes of non‑voting and deferred shares, with no shares held in treasury. Only the ordinary shares carry voting rights, giving the company a total of 1,599,781,137 voting rights, a key reference figure for shareholders and market participants when assessing disclosure obligations and changes in significant shareholdings under UK transparency rules.

The most recent analyst rating on (GB:THG) stock is a Hold with a £48.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Announces Admission of Convertible Loan Shares

THG PLC has announced the admission of 209,086,407 Ordinary Shares to trading on the London Stock Exchange and the FCA’s Official List, following a convertible loan agreement with FIC ShareCo Limited. This move increases the total voting rights in the company to 1,599,781,137, impacting shareholder calculations under the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:THG) stock is a Hold with a £55.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Announces Internal Share Transfer with No Change in Ownership

THG PLC announced a share transfer involving 181,818,181 ordinary voting shares at a price of 44 pence each, between two companies controlled by CEO Matthew Moulding. This internal transfer does not alter Moulding’s equity interest in THG PLC, maintaining the status quo in terms of ownership and control, and complies with UK Market Abuse Regulation.

The most recent analyst rating on (GB:THG) stock is a Buy with a £55.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

Myprotein Partners with Mars for New Snickers-Flavored Protein Range

Myprotein, part of THG Nutrition, has announced a collaboration with Mars to launch Snickers-flavored protein powders and Mars-branded protein bars. This partnership is part of Myprotein’s strategy to expand its market presence, aiming to sell 45 million units globally by the end of 2025, and highlights the brand’s commitment to innovation and market differentiation.

The most recent analyst rating on (GB:THG) stock is a Hold with a £49.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.