boohoo group Plc (BOO) AI Stock Analysis

• Market Cap: $337.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -16.32%
• EPS Growth: -202.39%
• Country: UK
• Employees: 5,079
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): -0.21
• Shares Outstanding: 1,397,216,600
• 10 Day Avg. Volume: 1,573,905
• 30 Day Avg. Volume: 2,287,382
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.23
• 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: $25.33
• Price Target Upside: -2.58% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

The stock score reflects significant financial challenges, including declining revenues and cash flow issues, which are major concerns. However, recent corporate events signal potential strategic improvements, and insider confidence provides some encouragement. Technical indicators suggest bearish momentum, while valuation remains unattractive due to recent losses.

Positive Factors

Financial Performance

H2 EBITDA is expected to be stronger than H1, indicating potential improvement.

Financial Strategy

The refinancing with a new £225m facility reduces the overall interest payable by the group.

Leadership

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

Negative Factors

Earnings

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

Sales Performance

Core brands are facing ongoing declines in sales and profitability, limiting the potential for share price growth.

Youth Brands

Youth Brands, which make up over 80% of group revenue, are struggling due to over-investment in staff, stock, and infrastructure, leading to negative impacts on volumes.

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

Overall, the financials indicate a challenging period for the company with declining revenues, profitability issues, and deteriorating cash flows. While some aspects of the balance sheet are stable, the overall financial health is concerning and suggests the need for strategic adjustments to improve performance.

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

boohoo group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 26 is below the 20-day moving average (MA) of 26.06, below the 50-day MA of 27.21, and below the 200-day MA of 30.28, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, 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	77 Outperform	£13.13B	18.26	46.76%	1.92%	12.83%	15.54%
JD	77 Outperform	£3.49B	10.81	14.67%	1.38%	2.85%	61.98%
MKS	72 Outperform	£7.35B	14.39	17.19%	0.83%	6.87%	22.36%
FRAS	66 Neutral	£2.37B	8.07	16.46%	―	-6.82%	-37.46%
Sector *	59 Neutral	$11.22B	10.13	-1.22%	3.96%	1.32%	-18.57%
BOO	48 Neutral	$337.00M	―	-96.36%	―	-16.32%	-202.39%
ASC	42 Neutral	£315.08M	―	-48.80%	―	-18.15%	-30.29%

boohoo group Plc Corporate Events

Boohoo Group Rebrands to Debenhams Despite Shareholder Vote

Boohoo group plc announced the outcome of its General Meeting, where the proposal to change the corporate name to Debenhams Group plc was not passed. Despite this, the company will continue to operate under the Debenhams brand, with a new stock market identifier ‘DEBS’ effective from March 31, 2025. The board expressed satisfaction with the majority shareholder support and remains optimistic about the company’s future, emphasizing the successful turnaround of Debenhams as a model for the broader group’s strategy.

boohoo Group Rebrands as Debenhams Group Following Successful Turnaround

boohoo group Plc has successfully completed the turnaround of Debenhams, transforming it into a profitable and rapidly growing online department store. The company will now operate as Debenhams Group, focusing on a marketplace-led business model to enhance growth and profitability. This strategic shift is expected to drive the recovery of the wider group, including its youth brands, and strengthen its position in the global digital retail space. The group has also announced a new ESG strategy and leadership changes, including the appointment of Phil Ellis as the new CFO.

Frasers Group Increases Stake in Boohoo Group

Frasers Group Plc has increased its stake in Boohoo Group PLC, raising its voting rights from 28.008079% to 29.053700%. This acquisition of voting rights indicates a strategic move by Frasers Group to strengthen its influence within Boohoo, potentially impacting the company’s strategic decisions and market positioning.

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.