THG (THG) AI Stock Analysis

• Market Cap: £477.22M
• Dividend Yield: N/A
• Average Volume (3M): 3.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -14.37%
• EPS Growth: -28.78%
• Country: UK
• Employees: 6,797
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): -0.15
• Shares Outstanding: 1,390,694,700
• 10 Day Avg. Volume: 2,424,650
• 30 Day Avg. Volume: 3,971,405
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £35.25
• Price Target Upside: 13.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: 31.00p ▲(0.19% Upside)

THG's overall stock score is primarily impacted by its financial challenges and weak technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the valuation. Improvements in cash flow management provide a slight positive, but the outlook remains cautious.

Positive Factors

Debt Reduction

THG's update and disposal have been well accepted by the market, with Claremont achieving a material reduction in group net debt from a non-core asset.

Growth Potential

Analyst views FY26 as a year that should see THG deliver robust growth.

Strategic Progress

Unlocking value and driving share gains is recognized as a positive factor for THG.

Negative Factors

Asset Disposal Impact

The flavour manufacturing business delivered revenue of c.£14m in FY24, and the transaction is expected to reduce FY26 aEBITDA by c.£10m, including a long-term contract agreed for the supply of flavour capabilities to Myprotein.

EBITDA Guidance

There is a headline cut to FY25 EBITDA guidance.

Profitability Concerns

H1 EBITDA has been guided to be c.£24m, representing a decline on H1'24 (£37m), with anticipated impacts from higher YoY whey pricing in Nutrition and territory pull-back on Beauty revenues.

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 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

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: Negative
• Last Price: 30.94
• 50DMA: Negative
• 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 Negative. The current price of 30.94 is below the 20-day moving average (MA) of 31.32, below the 50-day MA of 31.30, and below the 200-day MA of 34.70, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, 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
CARD	86 Outperform	£368.70M	7.74	14.43%	4.62%	6.19%	-4.44%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
AO	55 Neutral	£502.36M	48.25	6.87%	―	9.45%	-57.24%
MOON	49 Neutral	£662.62M	―	890.75%	0.48%	2.62%	-129.82%
DEBS	48 Neutral	£186.94M	―	-185.68%	―	-45.91%	-111.34%
ASC	46 Neutral	£360.43M	―	-62.59%	―	-15.86%	-18.46%
THG	46 Neutral	£477.22M	―	-27.20%	―	-14.37%	-28.78%

THG Corporate Events

THG PLC Divests Claremont Ingredients for £103 Million

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.

THG PLC Sells Claremont Ingredients to Nactarome Group for £103 Million

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.

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.