THG (GB:THG)
LSE:THG
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THG
(LSE:THG)
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Rating:60Neutral
Price Target:
38.00 p
▲(17.36% Upside)
Action:ReiteratedDate:12/07/25
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
Platform & e‑commerce model
THG's proprietary Ingenuity platform and integrated e‑commerce model provide durable competitive advantages: recurring platform and service revenue, operational scalability, and client stickiness. This diversification beyond pure retail supports margin recovery and predictable cash flows over the medium term.
Negative Factors
High leverage
Sustained high leverage and a low equity ratio constrain strategic options and increase vulnerability to macro shocks. Even with recent reductions, a 2.11 debt/equity ratio and negative ROE mean interest costs and leverage dynamics will materially influence cash flow allocation and limit capital flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform & e‑commerce model
THG's proprietary Ingenuity platform and integrated e‑commerce model provide durable competitive advantages: recurring platform and service revenue, operational scalability, and client stickiness. This diversification beyond pure retail supports margin recovery and predictable cash flows over the medium term.
Read all positive factors
THG (THG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£597.48M
Dividend YieldN/A
Average Volume (3M)6.85M
Price to Earnings (P/E)1.6
Beta (1Y)1.38
Revenue Growth-20.36%
EPS Growth44.33%
CountryUK
Employees6,797
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.01
Shares Outstanding1,640,392,700
10 Day Avg. Volume6,451,997
30 Day Avg. Volume6,852,398
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)2.01
Price to Sales (P/S)0.35
P/FCF Ratio21.24
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 Upside85.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£1.78B
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 pre...
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 sale...
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
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
55
Neutral
| 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
Neutral
32.38
Price Trends
35.08
Negative
39.92
Negative
37.03
Negative
Market Momentum
-1.32
Negative
54.39
Neutral
71.85
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 32.38 is above the 20-day moving average (MA) of 31.24, below the 50-day MA of 35.08, and below the 200-day MA of 37.03, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.85 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £2.75B | 2.38 | 21.64% | ― | -6.43% | 52.93% | |
73 Outperform | £1.23B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
71 Outperform | £3.42B | 26.72 | 17.89% | 1.21% | 14.60% | 58.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £597.48M | 1.55 | -35.25% | ― | -20.36% | 44.33% | |
52 Neutral | £277.70M | -1.12 | -111.93% | ― | -14.89% | 12.08% | |
41 Neutral | £265.71M | -3.32 | -9999.00% | ― | -65.42% | 27.73% |
* Consumer Cyclical Sector Average
GB:THG
THG
33.34
-0.30
-0.89%
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THG Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
THG Seeks London Listing for 40.6m New Shares Under Incentive Plan
Neutral
Jan 22, 2026
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 I...
Business Operations and StrategyExecutive/Board Changes
THG Appoints New Chair of Sustainability Committee
Positive
Jan 16, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
THG posts record H2 revenue as Beauty and Nutrition power return to growth
Positive
Jan 13, 2026
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 performan...
Regulatory Filings and Compliance
THG Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 2, 2026
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 ...
Delistings and Listing ChangesPrivate Placements and Financing
THG PLC Announces Admission of Convertible Loan Shares
Neutral
Dec 5, 2025
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 rig...
Regulatory Filings and Compliance
THG PLC Announces Internal Share Transfer with No Change in Ownership
Neutral
Nov 26, 2025
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 PL...
Business Operations and StrategyProduct-Related Announcements
Myprotein Partners with Mars for New Snickers-Flavored Protein Range
Positive
Nov 17, 2025
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 se...
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.