boohoo group Plc (BOO) Stock AI Analysis

• Market Cap: £348.58M
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -16.32%
• EPS Growth: -202.39%
• Country: UK
• Employees: 5,079
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Retail - Discretionary
• EPS (TTM): -0.21
• Shares Outstanding: 1,397,216,600
• 10 Day Avg. Volume: 2,769,854
• 30 Day Avg. Volume: 2,198,331
• Standard Deviation: 0.18
• R-Squared: 0.23
• Alpha: -0.04
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.24
• Price to Cash Flow (P/CF): 7.60
• 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: 21.00p
• Price Target Upside: -18.60% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

The overall stock score reflects significant financial challenges with declining revenues and profitability issues. Technical indicators suggest bearish momentum, and the valuation shows limited investor confidence due to negative earnings. However, recent corporate events reveal positive insider sentiment and shareholder support, highlighting potential stability and future prospects.

Positive Factors

Leadership

The appointment of Dan Finley as CEO is seen as positive, given his successful track record in rapidly building Debenhams' business.

US Market Expansion

The group remains 'excited' about the opportunity in the US, with Nasty Gal recently launched in Nordstrom stores, and advanced talks with major US brands on new routes to market for other brands.

Negative Factors

Financial Performance

H1 revenue declined by 15% and H1 EBITDA margin was 3.4%, which is below current estimates.

boohoo group Plc Business Overview & Revenue Model

Company Description

Boohoo Group Plc (BOO) is a leading British online fashion retailer known for its fast fashion clothing and accessories. The company operates in the e-commerce sector, providing a wide range of affordable and trendy fashion items primarily targeted at young adults. Boohoo's core products include men's and women's clothing, footwear, and accessories, with a focus on delivering the latest fashion trends quickly and affordably to its global customer base.

How the Company Makes Money

Boohoo Group Plc makes money primarily through direct-to-consumer online sales of fashion products. The company's revenue model is centered around its e-commerce platform, where it leverages digital marketing strategies to drive traffic and sales. Key revenue streams include the sale of its own branded merchandise, as well as products from various subsidiary brands it has acquired over the years, such as PrettyLittleThing, Nasty Gal, and MissPap. Boohoo's ability to rapidly design, produce, and distribute new fashion collections allows it to capitalize on current trends, boosting sales and customer engagement. The company also benefits from economies of scale and efficient supply chain management, which help to maintain competitive pricing while maximizing profit margins.

boohoo group Plc Financial Statement Overview

Summary

The company's financials indicate a challenging period with declining revenues, profitability issues, and deteriorating cash flows. Despite a stable gross profit margin, the net profit margin has been negative for the last two years. The balance sheet shows a manageable debt level but declining equity, indicating financial stress.

Income Statement

The company's income statement reveals declining revenue over the past three years, with significant losses in net income and EBIT. The gross profit margin is relatively stable at over 50%, but the net profit margin has been negative for the last two years, indicating profitability challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a manageable level of debt. However, the decline in stockholders' equity suggests financial stress. The equity ratio remains positive, indicating some stability in its asset base.

Cash Flow

Cash flow analysis shows a significant drop in free cash flow, with negative values indicating cash outflows exceeding inflows. Operating cash flow has also decreased significantly, suggesting issues with cash generation from operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.46B	1.77B	1.98B	1.75B	1.23B	856.92M
	Gross Profit
756.10M	826.60M	987.30M	915.40M	641.59M	468.99M
	EBIT
-146.90M	-39.90M	30.60M	123.40M	91.92M	65.35M
	EBITDA
-53.30M	-10.20M	84.40M	153.20M	116.57M	73.92M
	Net Income Common Stockholders
-137.80M	-75.60M	-4.00M	90.70M	63.70M	37.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
230.00M	332.00M	115.50M	276.00M	245.45M	197.87M
	Total Assets
1.08B	1.23B	998.40M	775.90M	569.49M	439.78M
	Total Debt
446.90M	463.60M	151.90M	18.30M	20.92M	7.15M
	Net Debt
216.90M	132.70M	50.60M	-257.70M	-224.53M	-190.73M
	Total Liabilities
795.70M	825.70M	534.10M	303.40M	241.56M	169.37M
	Stockholders Equity
279.70M	400.00M	464.30M	472.50M	310.67M	262.02M
Cash Flow		Free Cash Flow
-62.90M	38.60M	-252.10M	41.20M	71.63M	57.93M
	Operating Cash Flow
1.90M	129.80M	9.40M	163.90M	117.19M	101.56M
	Investing Cash Flow
-54.80M	-106.00M	-261.50M	-284.60M	-45.56M	-45.56M
	Financing Cash Flow
-48.00M	205.80M	77.40M	151.30M	-24.05M	-706.00K

boohoo group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BOO, the sentiment is Negative. The current price of 25.8 is below the 20-day moving average (MA) of 27.92, below the 50-day MA of 29.57, and below the 200-day MA of 31.23, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 26.82 is Positive, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BOO.

boohoo group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	78 Outperform	£11.75B	15.08	53.07%	2.15%	12.83%	15.54%
JD	77 Outperform	£4.05B	12.55	21.94%	1.19%	2.85%	61.98%
MKS	70 Outperform	£7.17B	14.06	15.23%	0.84%	6.87%	22.36%
FRAS	70 Outperform	£2.60B	8.93	20.64%		-6.82%	-37.46%
Sector *	60 Neutral	$13.44B	10.76	0.82%	3.49%	1.54%	-22.61%
ASC	45 Neutral	£398.10M	―	-64.97%	―	-18.15%	-30.29%
BOO	43 Neutral	£348.58M	―	-49.27%	―	-16.32%	-202.39%

boohoo group Plc Corporate Events

boohoo Group Grants Shares to Executives and Directors

boohoo group plc announced the grant of options over 8,293,104 ordinary shares to its top executives, Dan Finley and Stephen Morana, as part of their compensation and appointment agreements. Additionally, the company issued 275,864 shares to its non-executive directors as part of their compensation package. These actions are part of boohoo’s strategy to align management incentives with company performance, enhancing its operational and strategic positioning. The issuance of new shares will not dilute existing shareholders’ interests, maintaining the company’s focus on sustainable growth.

boohoo Co-Founder Increases Stake with Share Purchase

Carol Kane, Co-Founder and Executive Director of boohoo group plc, has purchased 330,295 ordinary shares, increasing her stake to approximately 1.50% of the company’s issued share capital. This transaction reflects insider confidence and may influence shareholder perspectives on the company’s stability and future prospects.

Boohoo Shareholders Reject Frasers’ Proposal to Remove Director

Boohoo Group plc announced that shareholders overwhelmingly rejected the proposal by Frasers Group plc to remove Mahmud Kamani as a director. With over 63% of votes against the resolution, the Board emphasized its commitment to creating shareholder value and urged Frasers to cease its destabilizing efforts. The outcome reflects strong support from shareholders, aligning with a previous rejection of Frasers’ attempts in December, reinforcing the Board’s mandate to focus on maximizing shareholder value.

Glass Lewis Advises Against Removing Mahmud Kamani from Boohoo’s Board

Boohoo group plc faces a recommendation from independent proxy adviser Glass Lewis for shareholders to vote against a resolution to remove Mahmud Kamani as a director at the upcoming General Meeting. Glass Lewis acknowledges the company’s recent strategic actions, including a business review and leadership changes, which they believe will retain Kamani’s expertise while empowering new leadership to enhance performance. The recommendation aligns with the company’s Independent Committee and Institutional Shareholder Services Inc., indicating significant support for the current leadership strategy.

boohoo Board Urges Rejection of Frasers’ Resolution

The Independent Committee of boohoo group plc is urging shareholders to vote against the resolution proposed by Frasers Group plc at the upcoming General Meeting, which seeks to remove Mahmud Kamani as a director. This recommendation is supported by Institutional Shareholder Services Inc. (ISS) and stems from concerns that Frasers’ actions aim to destabilize boohoo’s operations for its own commercial gain. The committee highlights the strategic steps taken by the board to enhance shareholder value, such as appointing Dan Finley as CEO, implementing cost savings, and raising equity capital.

boohoo’s Co-Founder Increases Shareholding, Signaling Confidence

boohoo group plc announced that Carol Kane, Co-Founder and Executive Director, has purchased 320,943 ordinary shares at a price of 31.08 pence per share, increasing her beneficial interest to approximately 1.47% of the company’s issued share capital. This transaction could signify confidence in the company’s future prospects and may influence the perception of stakeholders regarding the company’s market position and leadership stability.

Boohoo Group Strengthens Balance Sheet with London Office Sale

Boohoo group plc has announced the sale of its London office on Great Pulteney Street, Soho, for £49.5 million to Global Holdings UK Limited. This move is intended to strengthen the company’s balance sheet by disposing of a non-core asset, and part of the proceeds will be used to fully repay a term loan due in August 2025, leaving boohoo with a £125 million revolving credit facility to meet its future needs.

Boohoo Group Strengthens Leadership with New Board Appointment

Boohoo group plc announced the formal appointment of Dan Finley as a director and member of its Board of Directors, following his previous appointment as Chief Executive Officer. This strategic move underscores the company’s continuous efforts to strengthen its leadership team as it focuses on sustainable growth and expanding its market presence in the fashion eCommerce industry.

Boohoo Shareholders Reject Frasers’ Director Proposals

Boohoo Group plc announced that its shareholders overwhelmingly rejected proposals by Frasers Group plc to appoint Mike Ashley and Mike Lennon as directors during their recent General Meeting. The decision reinforces boohoo’s commitment to its current strategic direction, as the company’s leadership remains focused on maximizing shareholder value and recognizing significant opportunities in the business, emphasizing that the Group is undervalued and poised for growth.

Boohoo Group Rejects Frasers’ Board Appointments Amid Governance Concerns

Boohoo group plc has responded to an open letter from Frasers Group plc regarding shareholder voting recommendations that oppose certain board resolutions. Boohoo’s board has rejected the appointment of Mike Ashley and Mike Lennon to its board due to conflicts of interest and Frasers’ failure to agree to important governance commitments. The board is open to discussing board representation with Frasers if a suitable non-conflicted candidate is proposed. This ongoing dispute highlights concerns over governance and shareholder protection, impacting boohoo’s strategic positioning and stakeholder relations.

Boohoo CEO Increases Stake in Company with Share Purchase

Boohoo group plc has announced that Dan Finley, the Group Chief Executive Officer, has purchased 286,475 ordinary shares, increasing his total shareholding to 290,806 shares. This transaction, in compliance with EU Market Abuse Regulation, reflects a small portion of the company’s total issued share capital. With the acquisition of these shares, the company maintains a total of 1,396,912,394 ordinary shares and voting rights, providing a figure for shareholders to calculate their interests according to the Financial Conduct Authority’s Disclosure Rules.

Boohoo Group Urged to Reject Frasers’ Board Resolutions

Boohoo group plc has received a recommendation from Glass Lewis, a prominent proxy advisor, advising shareholders to vote against the resolutions for Frasers Group’s board representation at an upcoming General Meeting. This aligns with the board’s stance, emphasizing concerns over governance and potential conflicts of interest. The board believes Frasers’ actions could destabilize the company and acts in its self-interest, posing risks to shareholders. The recommendation supports boohoo’s strategic plan led by CEO Dan Finley to maximize shareholder value and protect the company’s independence.

Boohoo Urges Shareholders to Oppose Frasers’ Resolutions

Boohoo Group plc is urging shareholders to vote against resolutions proposed by Frasers Group plc, which aims to appoint Mike Ashley and Mike Lennon as directors. The board believes these appointments could conflict with the interests of other shareholders and highlights International Shareholder Services’ recommendation to oppose the resolutions. Boohoo has taken strategic actions such as appointing a new CEO, implementing cost-saving measures, and strengthening its business model to maximize shareholder value.

Boohoo Group Opposes Frasers’ Board Proposals

Boohoo Group is urging shareholders to reject resolutions proposed by Frasers Group at the upcoming General Meeting, backed by ISS’s recommendation. Concerns include Frasers’ lack of specific plans and potential conflicts of interest with board candidates, Mike Ashley and Mike Lennon. Boohoo’s board believes their current strategy and leadership under CEO Dan Finley will maximize shareholder value.

Boohoo Group Advises Against Frasers’ Board Proposals

Boohoo Group Plc is urging shareholders to vote against resolutions proposed by Frasers Group at an upcoming General Meeting. The independent proxy advisor, ISS, supports Boohoo’s stance, citing conflicts of interest and lack of clear plans from Frasers’ candidates. Boohoo’s Board believes their current strategic approach, led by CEO Dan Finley, will better maximize shareholder value.