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QVC Group (QVCGB)
NASDAQ:QVCGB
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QVC Group
(NASDAQ:QVCGB)
Rating:41Neutral
Price Target:
$5.00
▲( 5.71% Upside)
QVC Group (QVCGB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.09M
Dividend YieldN/A
Average Volume (3M)24.02K
Price to Earnings (P/E)―
Beta (1Y)-0.84
Revenue Growth-7.66%
EPS Growth-735.19%
CountryUS
Employees18,984
SectorConsumer Cyclical
Sector Strength74
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.25
Shares Outstanding9,114,716
10 Day Avg. Volume50,875
30 Day Avg. Volume24,017
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)-2.16
Price to Sales (P/S)0.00
P/FCF Ratio0.55
Enterprise Value/Market Cap55.71
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda10.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
QVC Group Business Overview & Revenue Model
Company DescriptionQVC Group (QVCGB) is a global leader in video commerce, combining the best of retail, media, and social to create a highly engaging shopping experience. It operates through broadcast networks, e-commerce sites, streaming services, and social platforms to offer a broad range of products including home goods, fashion, beauty, electronics, and jewelry. With a focus on storytelling and customer interaction, QVC connects with millions of consumers worldwide.
How the Company Makes MoneyQVC Group generates revenue through multiple streams, primarily focusing on direct-to-consumer sales via its television broadcast channels, online e-commerce platforms, and mobile applications. The company leverages its high-quality video content to engage viewers and drive sales, utilizing a blend of live and recorded programming. Key revenue streams include product sales, advertising, and strategic partnerships with various brands and suppliers. QVC's business model capitalizes on its ability to offer unique and exclusive products, fostering customer loyalty and repeat purchases. Additionally, the company benefits from its extensive customer data and analytics, which help tailor marketing strategies and optimize inventory management.
QVC Group Financial Statement Overview
Summary
QVC Group's financial performance is under significant stress, with declining revenues, persistent losses, and negative equity indicating severe profitability and solvency issues. Despite some ability to generate operating cash flow, the high leverage and negative equity position present significant risks.Income Statement
QVC Group's income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) shows a declining revenue trend, with a revenue decrease from $10.037 billion to $9.8 billion. The gross profit margin stands at 34.7%, indicating some ability to manage cost of goods sold. However, the net profit margin is concerning at -14.2%, reflecting substantial net losses. Both EBIT and EBITDA margins are negative, further highlighting operational inefficiencies and profitability issues.35
Negative
Balance Sheet
The balance sheet presents a precarious financial position. The debt-to-equity ratio is not calculable due to negative equity, reflecting excessive leverage and financial instability. Stockholders' equity is negative, primarily due to accumulated losses, which is a critical red flag. The equity ratio is also negative, indicating that liabilities exceed assets. This indicates potential solvency risks and vulnerability to economic fluctuations.25
Negative
Cash Flow
Cash flow statements provide a mixed view. Operating cash flow is positive at $439 million, suggesting some ability to generate cash from operations. However, free cash flow has decreased significantly over the years, from $794 million in 2021 to $168 million in the TTM. The operating cash flow to net income ratio is positive due to negative net income, but this is not a strength given the losses. Free cash flow to net income ratio is not meaningful due to negative net income.45
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.80B | 10.04B | 10.91B | 12.11B | 14.04B | 14.18B | Gross Profit |
| 3.40B | 3.51B | 3.69B | 3.69B | 4.81B | 4.89B | EBIT |
| -940.00M | -809.00M | 590.00M | 1.10B | 1.09B | 1.57B | EBITDA |
| -576.00M | -440.00M | 924.00M | -1.37B | 1.99B | 2.13B | Net Income Common Stockholders |
| -1.39B | -1.29B | -145.00M | -2.53B | 340.00M | 1.20B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 833.00M | 905.00M | 1.12B | 1.27B | 587.00M | 806.00M | Total Assets |
| 8.98B | 9.24B | 11.37B | 12.57B | 16.25B | 17.00B | Total Debt |
| 5.59B | 5.57B | 7.27B | 6.87B | 6.99B | 6.94B | Net Debt |
| 4.76B | 4.66B | 6.13B | 5.60B | 6.40B | 6.13B | Total Liabilities |
| 9.87B | 10.13B | 10.88B | 12.05B | 13.22B | 13.27B | Stockholders Equity |
| -981.00M | -971.00M | 385.00M | 412.00M | 2.89B | 3.60B |
| Cash Flow | Free Cash Flow | ||||
| 168.00M | 289.00M | 576.00M | -119.00M | 794.00M | 2.14B | Operating Cash Flow |
| 439.00M | 525.00M | 919.00M | 194.00M | 1.23B | 2.46B | Investing Cash Flow |
| -272.00M | -225.00M | -54.00M | 601.00M | -501.00M | -161.00M | Financing Cash Flow |
| -441.00M | -498.00M | -1.01B | -72.00M | -914.00M | -2.18B |
QVC Group Technical Analysis
Negative
4.73
Price Trends
5.86
Negative
4.77
Negative
4.17
Positive
Market Momentum
-0.15
Positive
39.72
Neutral
10.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGB, the sentiment is Negative. The current price of 4.73 is below the 20-day moving average (MA) of 5.68, below the 50-day MA of 5.86, and above the 200-day MA of 4.17, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 10.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QVCGB.
QVC Group Risk Analysis
QVC Group disclosed 38 risk factors in its most recent earnings report. QVC Group 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 2 New Risks
1.
Any further impairment of our goodwill or other intangible assets could have a material adverse effect on our business, results of operations and financial condition. Q3, 2022
2.
We have identified a material weakness in our internal control over financial reporting, that, if not properly remediated, could adversely affect our business and results of operations. Q3, 2022
QVC Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.47B | 28.50 | 11.97% | ― | 9.09% | 106.50% | |
62 Neutral | $6.97B | 11.36 | 2.77% | 3.91% | 2.66% | -22.00% | |
61 Neutral | $4.90B | 33.50 | -39.97% | ― | 2.18% | -32.87% | |
50 Neutral | $4.89B | ― | 17.86% | ― | -0.89% | 46.62% | |
48 Neutral | $276.08M | 43.11 | 2.59% | ― | -7.44% | ― | |
44 Neutral | $295.57M | ― | -42.08% | ― | -8.53% | -2070.29% | |
41 Neutral | $87.09M | ― | ― | -7.66% | -735.19% |
* Consumer Cyclical Sector Average
Performance Comparison
QVCGB
QVC Group
4.73
0.33
7.50%
FLWS
1-800 Flowers
4.49
-4.82
-51.77%
LE
Lands' End
8.64
-5.32
-38.11%
W
Wayfair
36.42
-25.01
-40.71%
ETSY
Etsy
46.49
-15.59
-25.11%
RVLV
Revolve Group
20.03
0.63
3.25%
QVC Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -31.55%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call highlights challenges faced by QVC due to macroeconomic factors, declining linear TV viewership, and reduced consumer confidence, leading to declines in revenue and customer count. However, there are positive developments in social and streaming platforms, strategic partnerships, and customer spending, indicating potential growth areas. Despite the challenges, QVC is focused on transforming its business model to adapt to the changing market.Q1-2025 Updates
Positive Updates
Strategic Partnership with TikTok
QVC signed a strategic agreement with TikTok for the first 24/7 live shopping experience in the U.S., expanding its social shopping reach.
Growth in Social and Streaming Platforms
Streaming monthly active users grew 131%, and combined minutes watched on social and streaming platforms increased by 26%, reaching 1.4 billion minutes.
New Product Launch Success
Successful launches included Geoffrey Zakarian's Wine, which sold out, and continued interest in Floor Care from Dyson.
Improvement in Customer Spending
Existing customers spent an average of $1,635, with top customers purchasing 76 items and spending $3,975 on average, up 1% year-over-year.
Innovative Partnerships
Launched a new experience with American Airlines, allowing customers to watch QVC+ and HSN+ episodes on flights.
Negative Updates
Decline in Total Revenue
Total revenue declined 10% due to pressure from declining linear TV viewership and reduced consumer confidence.
Decreased Customer Count
Total customer count declined 10%, with existing customers down 9%, new customers down 17%, and reactivated customers down 13%.
Challenges in Key Markets
QVC International revenue declined 4% in constant currency, affected by factors like German elections and inflationary pressures in Japan.
Cornerstone Revenue Decline
Cornerstone revenue declined 13%, impacted by continued housing market stagnation.
Adjusted OIBDA Decline
Consolidated adjusted OIBDA declined 31% in constant currency due to continued sales deleverage.
Company Guidance
During the QVC Group's 2025 Q1 earnings call, guidance highlighted several important metrics and strategies aimed at addressing current challenges. Total revenue declined by 10%, attributed to a decrease in linear TV viewership and weakened consumer sentiment. Adjusted OIBDA fell by 31% in constant currency, reflecting sales deleverage. The company announced a reorganization plan, including the closure of the St. Petersburg facility and transitioning operations to West Chester, Pennsylvania by Q3 2025. Customer count decreased by 10%, with new and reactivated customers falling by 17% and 13%, respectively. However, existing customers maintained an average spend of $1,635, purchasing 32 items over 12 months. In the international segment, revenue declined by 4% in constant currency, while Cornerstone experienced a 13% revenue drop due to a sluggish housing market. The company also reported a strategic partnership with TikTok for a 24/7 live shopping experience, aiming to capture revenue growth in social and streaming platforms. Additionally, the company is pursuing $100 million in OIBDA opportunities through cost management and sourcing shifts to mitigate tariff impacts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.