Warpaint London (W7L) AI Stock Analysis

• Market Cap: £181.77M
• Dividend Yield: 5.48%
• Average Volume (3M): 769.02K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.08
• Revenue Growth: 6.38%
• EPS Growth: -10.55%
• Country: UK
• Employees: 155
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.09
• Shares Outstanding: 80,787,320
• 10 Day Avg. Volume: 287,147
• 30 Day Avg. Volume: 769,020
• PEG Ratio: 0.80
• Price to Book (P/B): 5.51
• Price to Sales (P/S): 3.98
• P/FCF Ratio: 58.54
• 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: £475.00
• Price Target Upside: 126.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 233.00p ▲(10.95% Upside)

Warpaint London demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The valuation is attractive, with a low P/E ratio and high dividend yield, offering potential for price appreciation and income. However, technical analysis indicates some caution with long-term price trends, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product acceptance, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with increasing equity and low leverage enhances financial stability and provides capacity for future investments.

Cash Generation Ability

Effective cash generation supports operational funding and growth initiatives, ensuring the company can sustain and expand its business activities.

Negative Factors

Earnings Per Share Decline

A decline in earnings per share may indicate challenges in maintaining profitability, potentially affecting investor confidence and future growth.

Technical Analysis Concerns

Technical indicators pointing to potential long-term weakness could reflect underlying business challenges or market perception issues.

Profit Margin Volatility

While margins have improved, maintaining this trend is crucial. Any volatility could impact financial health and strategic flexibility.

Warpaint London Business Overview & Revenue Model

Company Description

Warpaint London PLC, together with its subsidiaries, provides color cosmetics. It operates through two segments, Branded and Close-Out. It provides supply chain management services; and operates as a wholesaler. The company provides its products under the W7, Technic, Man'stuff, Body Collection, Vintage, Very Vegan, and Chit Chat brand names. Warpaint London PLC sells its products to retailers, distributors, and retail chains, as well as through online. The company operates in the United Kingdom, rest of Europe, Spain, Denmark, the United States, Australia, New Zealand, and internationally. The company was founded in 1992 and is based in Iver, the United Kingdom.

How the Company Makes Money

Warpaint London generates revenue through the sale of its diverse range of makeup products across multiple channels, including online retail, brick-and-mortar stores, and partnerships with beauty retailers. Key revenue streams include direct-to-consumer sales via its e-commerce platform, wholesale distribution to beauty retailers, and collaborations with influencers and beauty professionals to enhance brand visibility and drive sales. The company's commitment to sustainability and cruelty-free practices also attracts a niche market willing to pay premium prices, contributing to its overall profitability.

Warpaint London Financial Statement Overview

Summary

Warpaint London exhibits strong financial performance with impressive revenue growth, solid profitability, and a stable financial structure. The company effectively manages its operations, generating significant cash flows and maintaining a healthy balance sheet with low leverage.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.06M	101.61M	89.59M	64.06M	50.00M	40.29M
Gross Profit	41.47M	39.63M	33.77M	23.33M	16.91M	12.54M
EBITDA	22.98M	26.34M	20.45M	11.69M	7.55M	2.79M
Net Income	15.65M	18.23M	13.90M	6.25M	2.83M	-999.00K
Balance Sheet
Total Assets	105.19M	85.56M	65.03M	51.35M	47.57M	45.97M
Cash, Cash Equivalents and Short-Term Investments	17.02M	21.89M	9.05M	5.87M	4.07M	4.88M
Total Debt	10.42M	4.25M	5.45M	5.86M	3.15M	3.96M
Total Liabilities	31.72M	12.27M	18.22M	13.57M	11.42M	8.60M
Stockholders Equity	73.47M	73.29M	46.80M	37.78M	36.15M	37.37M
Cash Flow
Free Cash Flow	14.03M	6.90M	9.77M	7.59M	4.49M	6.58M
Operating Cash Flow	16.01M	9.14M	10.29M	8.43M	5.09M	7.46M
Investing Cash Flow	-10.75M	-2.67M	-518.00K	-843.00K	-599.00K	-860.00K
Financing Cash Flow	6.33M	6.39M	-6.67M	-5.52M	-5.29M	-4.45M

Warpaint London Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.00
• 50DMA: Positive
• 100DMA: Negative
• 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:W7L, the sentiment is Positive. The current price of 210 is above the 20-day moving average (MA) of 207.02, above the 50-day MA of 209.58, and below the 200-day MA of 330.66, indicating a neutral trend. The MACD of -6.32 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:W7L.

Warpaint London Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
W7L	72 Outperform	£181.77M	11.35	25.14%	5.48%	6.38%	-10.55%
CRL	72 Outperform	£20.56M	8.38	9.67%	3.02%	2.83%	―
MCB	68 Neutral	£198.64M	5.82	42.11%	2.42%	-0.89%	1.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PZC	52 Neutral	£286.09M	-49.42	-2.51%	4.49%	-2.67%	89.86%
REVB	39 Underperform	£24.05M	-0.51	―	―	-31.02%	-4458.82%

Warpaint London Corporate Events

Warpaint London Strengthens Brokerage Team with New Appointment

Warpaint London PLC has appointed Joh. Berenberg, Gossler & Co KG as a joint corporate broker alongside its existing broker, Shore Capital. This strategic move is expected to enhance Warpaint’s market presence and potentially improve its financial advisory capabilities, signaling a commitment to strengthening its position in the cosmetics industry.

The most recent analyst rating on (GB:W7L) stock is a Buy with a £440.00 price target. To see the full list of analyst forecasts on Warpaint London stock, see the GB:W7L Stock Forecast page.

Warpaint London Reports 8% Sales Growth Amid Challenging Market Conditions

Warpaint London PLC reported an 8% increase in group sales to £49.3 million for the first half of 2025, driven by the acquisition of Brand Architekts and successful new product launches. Despite improved gross profit margins, the company faced a 41% decline in profit before tax due to non-cash losses on foreign exchange contracts and exceptional costs related to the acquisition. The company anticipates a strong second half with significant store rollouts and price increases, although it has lowered its full-year expectations due to challenging market conditions and a key customer entering administration.

The most recent analyst rating on (GB:W7L) stock is a Hold with a £392.00 price target. To see the full list of analyst forecasts on Warpaint London stock, see the GB:W7L Stock Forecast page.

Warpaint London to Announce Interim Results Amid Recent Acquisitions

Warpaint London PLC announced that it will release its unaudited interim results for the first half of 2025 on September 10, 2025. This announcement is significant as it follows the company’s recent acquisition of several health and beauty brands, which may impact its market positioning and stakeholder interests.

The most recent analyst rating on (GB:W7L) stock is a Hold with a £392.00 price target. To see the full list of analyst forecasts on Warpaint London stock, see the GB:W7L Stock Forecast page.