Warpaint London (W7L) AI Stock Analysis

• Market Cap: £249.63M
• Dividend Yield: 3.73%
• Average Volume (3M): 242.46K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.14
• Revenue Growth: 13.41%
• EPS Growth: 30.17%
• Country: UK
• Employees: 155
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 0.13
• Shares Outstanding: 80,787,320
• 10 Day Avg. Volume: 190,224
• 30 Day Avg. Volume: 242,457
• 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: £700.00
• Price Target Upside: 145.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: 392.00p ▲(37.54% Upside)

Warpaint London scores strongly on financial performance due to impressive growth and a solid balance sheet. However, technical indicators show bearish sentiment, and valuation metrics suggest the stock is fairly valued. Positive corporate events and strategic initiatives provide a promising outlook, potentially offsetting short-term technical weaknesses.

Warpaint London Business Overview & Revenue Model

Company Description

Warpaint London (W7L) is a cosmetics company based in the UK, specializing in high-performance, cruelty-free makeup products. The brand is particularly known for its innovative formulas and vibrant color palettes that cater to a diverse clientele. Warpaint London operates in the beauty and personal care sector, offering a range of products that include foundations, lipsticks, and eye makeup, aimed at both everyday consumers and professional makeup artists.

How the Company Makes Money

Warpaint London generates revenue primarily through the sale of its makeup products across various channels, including direct-to-consumer online sales, retail partnerships, and distribution in beauty supply stores. Key revenue streams include product sales from their e-commerce platform, wholesale agreements with retailers, and potential collaborations with beauty influencers and makeup artists to promote their products. Additionally, the company may benefit from seasonal promotions and limited-edition product launches that drive consumer interest and sales.

Warpaint London Financial Statement Overview

Summary

Warpaint London demonstrates strong financial performance with impressive revenue growth, solid profitability, and a stable financial structure. The company's robust income statement, healthy balance sheet, and consistent cash flow generation position it well for continued growth.

Income Statement

Warpaint London has demonstrated impressive revenue growth over recent years, with a strong top-line increase from £40.3 million in 2020 to £101.6 million in 2024. Gross profit margins have remained relatively stable, indicating a consistent ability to manage production costs effectively. The net profit margin has improved significantly, reflecting greater operational efficiency and cost control. EBIT and EBITDA margins are also strong, showcasing the company's robust profitability. Overall, the income statement highlights Warpaint London's solid financial performance with substantial growth and profitability.

Balance Sheet

The company's balance sheet reveals a healthy financial position, with a significant increase in stockholders' equity from £37.8 million in 2022 to £73.3 million in 2024, indicating strong retained earnings and growth. The debt-to-equity ratio is low, signifying prudent leverage and risk management. Additionally, the equity ratio is high, reflecting strong asset backing by equity. However, there is a need to maintain this trajectory to ensure continued financial stability.

Cash Flow

Warpaint London has shown consistent free cash flow generation, with a positive free cash flow in recent years. The operating cash flow to net income ratio remains favorable, indicating effective cash generation from operations. Although free cash flow experienced slight fluctuations, the overall trend remains strong, supporting the company's ability to fund operations and growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	101.61M	89.59M	64.06M	50.00M	40.29M
Gross Profit	39.63M	33.77M	23.33M	16.91M	12.54M
EBITDA	26.34M	20.45M	11.69M	7.55M	2.79M
Net Income	18.23M	13.90M	6.25M	2.83M	-999.00K
Balance Sheet
Total Assets	85.56M	65.03M	51.35M	47.57M	45.97M
Cash, Cash Equivalents and Short-Term Investments	21.89M	9.05M	5.87M	4.07M	4.88M
Total Debt	4.25M	5.45M	5.86M	3.15M	3.96M
Total Liabilities	12.27M	18.22M	13.57M	11.42M	8.60M
Stockholders Equity	73.29M	46.80M	37.78M	36.15M	37.37M
Cash Flow
Free Cash Flow	6.90M	9.77M	7.59M	4.49M	6.58M
Operating Cash Flow	9.14M	10.29M	8.43M	5.09M	7.46M
Investing Cash Flow	-2.67M	-518.00K	-843.00K	-599.00K	-860.00K
Financing Cash Flow	6.39M	-6.67M	-5.80M	-5.29M	-4.45M

Warpaint London Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:W7L, the sentiment is Negative. The current price of 285 is below the 20-day moving average (MA) of 314.65, below the 50-day MA of 368.47, and below the 200-day MA of 422.21, indicating a bearish trend. The MACD of -20.10 indicates Negative momentum. The RSI at 25.00 is Positive, neither overbought nor oversold. The STOCH value of 23.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:W7L.

Warpaint London Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRL	75 Outperform	£22.27M	9.08	10.60%	2.97%	1.64%	―
MCB	70 Outperform	£199.73M	5.00	64.21%	―	0.81%	125.55%
W7L	65 Neutral	£249.63M	13.17	30.36%	3.73%	13.41%	30.17%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
REVB	59 Neutral	£10.69M	―		―	-25.46%	-260.71%
PZC	50 Neutral	£280.64M	―	-2.48%	2.19%	-16.16%	80.50%
CLAI	39 Underperform	$940.53K	―	-130.38%	―	-100.00%	37.84%

Warpaint London Corporate Events

Warpaint London PLC Successfully Passes All AGM Resolutions

Warpaint London PLC announced that all resolutions were passed at their Annual General Meeting, reflecting strong shareholder support. This includes the approval of the director’s remuneration report, re-election of key directors, re-appointment of auditors, and the declaration of a final dividend of 7.5 pence per share. The successful passing of these resolutions indicates stability and continued confidence in the company’s leadership and strategic direction, potentially reinforcing its market position and stakeholder trust.

Warpaint London Projects Strong Growth Amid New Acquisitions and Product Rollouts

Warpaint London PLC announced at its AGM that it expects robust trading for the first half of 2025, with sales projected between £50 million and £52 million, despite a slowdown in its US business due to higher tariffs. The company anticipates significant growth opportunities in the second half of the year, driven by new product rollouts and a strong Christmas order book, with Brand Architekts, acquired in February 2025, contributing to this growth. Warpaint maintains a strong balance sheet with no debt and a substantial cash reserve, and plans to pay a final dividend of 7.5 pence per share, reflecting confidence in meeting market expectations for the year.

Warpaint London PLC Announces Change in Major Holdings

Warpaint London PLC has announced a change in its major holdings, with Rathbones Investment Management Ltd acquiring or disposing of voting rights. This adjustment results in Rathbones holding a total of 5.5757% of Warpaint’s voting rights, reflecting a significant stake in the company. This shift in holdings could impact Warpaint’s strategic decisions and influence its market positioning, as stakeholders like Rathbones play a crucial role in the company’s governance.

Warpaint London Announces Shareholding Changes with Schroders PLC

Warpaint London PLC has announced a change in its shareholding structure as Schroders PLC has adjusted its holdings in the company. The notification indicates that Schroders PLC now holds 10.990287% of Warpaint London’s shares, a slight decrease from the previous 11.243425%. This adjustment in shareholding could impact Warpaint London’s market dynamics and stakeholder interests, reflecting Schroders’ strategic investment decisions.

Warpaint London PLC Announces Annual Report and AGM Details

Warpaint London PLC has announced the posting of its Annual Report for the year ending 31 December 2024, along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for 17 June 2025. This announcement may impact the company’s operations by keeping stakeholders informed and engaged, potentially influencing its market positioning and stakeholder relations.