THG (THG) AI Stock Analysis

• Market Cap: £479.99M
• Dividend Yield: N/A
• Average Volume (3M): 6.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -14.37%
• EPS Growth: -28.78%
• Country: UK
• Employees: 6,797
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): -0.15
• Shares Outstanding: 1,390,694,700
• 10 Day Avg. Volume: 3,349,566
• 30 Day Avg. Volume: 6,714,864
• PEG Ratio: 0.07
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.93
• 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: £38.50
• Price Target Upside: 21.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: 33.00p ▲(3.84%Upside)

The overall score is driven by THG's challenging financial performance and valuation, partially offset by strong technical indicators and positive corporate events. The ongoing financial difficulties and high leverage are significant concerns, while recent corporate initiatives provide some optimism for future stability.

Positive Factors

Financial Performance

THG has provided a solid trading update, with Q2 cc revenue returning to growth, underpinned by marked improvements in both Beauty and Nutrition.

Investor Confidence

THG received an unsolicited proposal to acquire Myprotein, indicating interest from external investors.

Strategic Developments

The completion of debt refinancing underlines THG's target to progress towards a neutral net debt position.

Negative Factors

Execution Risks

The offer to acquire Myprotein carried significant execution risks, leading to its rejection.

Market Challenges

Impacts of tariffs and continued elevated whey price are reflected in the updated numbers.

Valuation Concerns

The proposal to acquire Myprotein was considered to fundamentally undervalue Myprotein.

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 makes money primarily through direct-to-consumer sales of its proprietary brands in the beauty, wellness, and lifestyle segments. Its revenue model is significantly bolstered by THG Ingenuity, the company's end-to-end e-commerce platform, which provides services such as website hosting, digital marketing, and logistics to both its own brands and external clients. This platform enables THG to generate revenue from business-to-business clients by offering comprehensive e-commerce solutions. Key revenue streams include product sales from owned brands, subscription services like Glossybox, and fees from third-party companies utilizing the THG Ingenuity platform. The company's earnings are supported by strategic partnerships with major global brands and retailers, leveraging its technology to support their online presence and operations.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	2.05B	2.24B	2.18B	1.61B
Gross Profit	693.60M	840.29M	771.00M	855.37M	655.91M
EBITDA	-48.64M	42.42M	-289.44M	32.07M	-376.33M
Net Income	-326.14M	-248.37M	-539.96M	-138.07M	-532.63M
Balance Sheet
Total Assets	2.55B	2.78B	3.09B	3.42B	2.45B
Cash, Cash Equivalents and Short-Term Investments	309.35M	416.16M	473.78M	536.83M	773.58M
Total Debt	645.94M	995.01M	1.01B	839.04M	762.34M
Total Liabilities	2.24B	1.76B	1.79B	1.67B	1.30B
Stockholders Equity	305.83M	1.02B	1.30B	1.76B	1.14B
Cash Flow
Free Cash Flow	28.99M	16.15M	-164.27M	-190.88M	-198.98M
Operating Cash Flow	60.70M	141.81M	12.15M	-1.71M	40.39M
Investing Cash Flow	-92.11M	-77.14M	-182.11M	-959.06M	-351.32M
Financing Cash Flow	-22.91M	-122.29M	106.92M	724.01M	772.28M

THG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.78
• 50DMA: Positive
• 100DMA: Positive
• 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:THG, the sentiment is Positive. The current price of 31.78 is above the 20-day moving average (MA) of 31.56, above the 50-day MA of 27.94, and below the 200-day MA of 37.04, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 45.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THG.

THG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARD	76 Outperform	£303.13M	6.28	14.43%	8.31%	6.19%	-4.44%
MOON	64 Neutral	£695.07M	―	890.75%	0.47%	5.32%	-152.26%
AO	63 Neutral	£547.87M	51.80	6.87%	―	-0.39%	2.68%
Sector *	62 Neutral	C$5.19B	8.79	20.23%	3.49%	3.08%	9.19%
THG	58 Neutral	£479.99M	―	-27.20%	―	-14.37%	-28.78%
ASC	51 Neutral	£384.89M	―	-62.59%	―	-15.86%	-18.46%
DEBS	48 Neutral	£244.08M	―	-96.36%	―	-16.32%	-202.39%

THG Corporate Events

THG PLC Announces Changes to Board Committee Roles

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.

THG PLC Announces Successful AGM Resolutions

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.

THG PLC Returns to Revenue Growth in Q2 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.

Frasers Group Increases Stake in THG PLC

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.

THG PLC Announces Annual General Meeting Details

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.

THG PLC Releases 2024 Annual Report and Schedules AGM

THG PLC has released its Annual Report & Accounts for the financial year ending December 31, 2024. The report is now available on the company’s website and will soon be distributed to shareholders. Additionally, the report has been submitted to the National Storage Mechanism for public inspection. The company’s Annual General Meeting is scheduled for June 25, 2025, at THG Studios in Altrincham. This release marks a significant step in THG’s corporate governance and transparency efforts, providing stakeholders with comprehensive insights into the company’s financial performance and strategic direction.

THG PLC Reports Transformative Year with Strategic Progress and Resilience

THG PLC reported its preliminary FY 2024 results, highlighting a transformative year marked by strategic progress, operational resilience, and balance sheet deleveraging. The company completed the demerger of its technology division, THG Ingenuity, and refinanced its long-term capital structure. Despite a slight decline in overall revenue, THG Beauty showed strong growth, while THG Nutrition faced challenges due to high whey commodity prices but returned to growth in early 2025. The company remains focused on sustainable growth and cash generation, with plans to enhance market share through strategic initiatives in both beauty and nutrition sectors.

THG Rejects Selkirk’s Proposal for Myprotein Amid Strategic Focus

THG PLC has rejected an unsolicited proposal from Selkirk to acquire Myprotein, citing the offer as undervaluing the brand and lacking sufficient funding details. Following a recent demerger and refinancing, THG is focused on reducing debt and executing its growth strategy, with upcoming financial results expected soon.