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Frasers Group (GB:FRAS)
LSE:FRAS

Frasers Group (FRAS) AI Stock Analysis

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GBFrasers Group
(LSE:FRAS)
68Neutral
Frasers Group's financial stability and operational efficiency are strong, with a solid equity base and impressive cash flow generation. However, negative revenue growth and strategic concerns from recent corporate events, such as halting the XXL ASA acquisition, temper the outlook. The stock's undervaluation and strategic expansion plans in the Gulf and Egypt present opportunities for future growth.
Positive Factors
Market Expansion
Frasers' investment will enable the group to grow its presence in Australia and New Zealand, a 'key' market in its global ambitions.
Strategic Investments
Frasers has announced the purchase of a c.15% investment in Accent Group, a 900-store listed performance/lifestyle retail and distribution business in Australia and NZ.
Negative Factors
Leadership Issues
Frasers has highlighted a 'leadership crisis' at boohoo in an Open Letter.

Frasers Group (FRAS) vs. S&P 500 (SPY)

Frasers Group Business Overview & Revenue Model

Company DescriptionFrasers Group (FRAS) is a leading British retail and intellectual property group that operates a diverse portfolio of globally recognized sports, lifestyle, and luxury brands. The company is headquartered in Shirebrook, United Kingdom. It encompasses various sectors, including retail, wholesale, and licensing of brands across sports and fashion. Key brands within its portfolio include Sports Direct, House of Fraser, Flannels, and Jack Wills, among others.
How the Company Makes MoneyFrasers Group generates revenue primarily through its retail operations, which involve the sale of sports equipment, apparel, and fashion products across its numerous store formats and online platforms. The company's revenue streams are diversified across several brands and geographic markets, providing a mix of price points and customer demographics. In addition to direct retail sales, Frasers Group also earns income through brand licensing agreements, which allow other businesses to produce and sell products under its owned brand names, thereby earning royalties. Furthermore, the company benefits from strategic acquisitions of distressed retail brands, enhancing its portfolio and market reach. Partnerships with international suppliers and exclusive product lines contribute significantly to its earnings by ensuring a competitive product offering.

Frasers Group Financial Statement Overview

Summary
Frasers Group demonstrates financial stability and operational efficiency, with strong cash flow generation and a solid equity base. While revenue growth has stalled, the company maintains stable profit margins and a manageable debt level. Continued focus on revenue growth and profit margins will be crucial for future performance.
Income Statement
65
Positive
Frasers Group's income statement reveals a mixed performance. The gross profit margin remains stable at 43.3%, indicating efficient cost management. However, the net profit margin has decreased to 6.9% from the previous year due to a drop in net income. Revenue growth is negative, declining by 0.34% compared to last year, which may be a concern. Despite these challenges, the company has improved its EBIT margin to 9.4%, suggesting better operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a robust position with an equity ratio of 41.4%, reflecting a strong equity base. The debt-to-equity ratio stands at 0.79, indicating a moderate level of leverage that is manageable. Return on equity is 20.6%, demonstrating effective utilization of shareholders' equity to generate profits. Overall, the balance sheet suggests financial stability with adequate equity and manageable debt levels.
Cash Flow
72
Positive
Cash flow analysis highlights an impressive operating cash flow to net income ratio of 1.79, indicating strong cash generation relative to net income. The free cash flow growth rate is 823.3%, driven by a significant increase in free cash flow, which reflects improved cash management. The free cash flow to net income ratio is 1.09, showcasing efficient conversion of profits into cash. These metrics point to a solid cash flow position with strong liquidity.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
5.54B5.56B4.69B3.51B3.96B
Gross Profit
2.40B2.37B2.04B1.48B1.37B
EBIT
520.60M339.70M450.80M200.90M165.70M
EBITDA
883.10M976.20M609.70M337.30M478.00M
Net Income Common Stockholders
380.80M491.70M249.80M-83.00M93.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
358.60M332.90M336.80M457.00M534.00M
Total Assets
4.45B4.29B4.14B3.79B3.87B
Total Debt
1.45B1.43B1.45B1.43B1.52B
Net Debt
1.09B1.10B1.11B971.60M990.10M
Total Liabilities
2.58B2.63B2.83B2.57B2.59B
Stockholders Equity
1.84B1.62B1.29B1.19B1.27B
Cash FlowFree Cash Flow
415.00M44.90M159.20M276.50M45.20M
Operating Cash Flow
682.20M514.30M482.40M496.90M368.70M
Investing Cash Flow
-387.40M-201.40M-123.50M-289.90M-203.70M
Financing Cash Flow
-297.60M-320.40M-479.20M-278.70M-84.00M

Frasers Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price619.00
Price Trends
50DMA
611.43
Positive
100DMA
674.35
Negative
200DMA
764.64
Negative
Market Momentum
MACD
1.26
Positive
RSI
47.82
Neutral
STOCH
62.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAS, the sentiment is Negative. The current price of 619 is below the 20-day moving average (MA) of 623.77, above the 50-day MA of 611.43, and below the 200-day MA of 764.64, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRAS.

Frasers Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBNXT
77
Outperform
£11.75B15.0853.07%2.13%12.83%15.54%
GBJD
77
Outperform
£4.05B12.5521.94%1.18%2.85%61.98%
GBMKS
70
Outperform
£7.60B14.9015.23%0.82%6.87%22.36%
68
Neutral
£2.57B8.7620.64%-6.82%-37.46%
60
Neutral
$13.01B10.450.79%3.53%1.60%-22.47%
GBASC
45
Neutral
£363.80M-64.97%-18.15%-30.29%
GBBOO
43
Neutral
£348.58M-49.27%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FRAS
Frasers Group
619.00
-181.00
-22.63%
GB:BOO
boohoo group Plc
25.80
-8.09
-23.87%
GB:MKS
Marks and Spencer
376.00
137.41
57.59%
GB:NXT
Next plc
9,990.00
1,764.54
21.45%
GB:JD
JD Sports Fashion
76.68
-39.44
-33.96%
GB:ASC
ASOS plc
305.40
-62.80
-17.06%

Frasers Group Corporate Events

Regulatory Filings and Compliance
Frasers Group Announces Updated Voting Rights and Capital Structure
Neutral
Mar 3, 2025

Frasers Group PLC has announced the total number of voting rights and capital in the company as of the end of February 2025. The company has issued 640,602,369 ordinary shares, with 190,286,334 held as treasury shares, resulting in 450,316,035 total voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and Strategy
Frasers Group Partners with GMG for Gulf and Egypt Expansion
Positive
Feb 27, 2025

Frasers Group has announced a strategic partnership with GMG to expand its retail presence in the Gulf region and Egypt, with plans to open 50 new Sports Direct stores over the next five years. This partnership leverages GMG’s extensive market knowledge and distribution capabilities, aiming to strengthen Frasers’ position in the sports retail industry and enhance its growth potential in these regions.

M&A TransactionsBusiness Operations and Strategy
Frasers Group Halts Acquisition Plan for XXL ASA
Negative
Feb 20, 2025

Frasers Group PLC announced that it will not proceed with its planned voluntary offer for XXL ASA shares it does not own, citing the inability to meet the condition of securing acceptance from a sufficient number of shareholders. This decision impacts Frasers’ expansion strategy, potentially altering its market position and influencing stakeholder expectations regarding future acquisition activities.

Regulatory Filings and Compliance
Frasers Group Updates Total Voting Rights for January 2025
Neutral
Feb 3, 2025

Frasers Group PLC has announced an update on its total voting rights as required by the FCA’s Disclosure Guidance and Transparency Rules. As of the end of January 2025, the company has 450,316,035 total voting rights, which shareholders can use to determine if they need to notify any changes in their interest in the company. This update is crucial for ensuring transparency and compliance with regulatory requirements.

Shareholder MeetingsBusiness Operations and Strategy
Frasers Group Raises Concerns in Open Letter to boohoo Shareholders
Negative
Jan 22, 2025

Frasers Group has issued an open letter to the shareholders of boohoo group plc, highlighting concerns about certain issues related to Mr. Umar Kamani. This development follows a recent general meeting of boohoo’s shareholders, the outcomes of which Frasers has acknowledged, indicating potential impacts on shareholder relations and corporate governance within the industry.

Frasers Group Updates on Total Voting Rights
Jan 2, 2025

Frasers Group PLC has announced the total number of voting rights and capital as of the end of the calendar month where changes occurred, in compliance with the FCA’s Disclosure Guidance and Transparency Rules. The company reports an issued share capital of 640,602,369 ordinary shares, with 190,286,334 held as treasury shares, resulting in a total of 450,316,035 voting rights. This information is crucial for shareholders to determine whether they need to notify the company of their interests or changes in interest, impacting how stakeholders engage with the company.

Frasers Group Responds to Boohoo’s Shareholder Meeting Outcome
Dec 23, 2024

Frasers Group plc, a prominent retailer, has acknowledged the outcome of the boohoo group plc’s shareholder meeting held on December 20, 2024. Frasers respects the shareholders’ decision and intends to propose a highly qualified board candidate for boohoo, expressing an expectation for boohoo’s board to honor their commitment promptly.

Frasers Group CEO Nominated to Hugo Boss Supervisory Board
Dec 17, 2024

Frasers Group PLC announced that its CEO, Michael Murray, has been nominated to join the Supervisory Board of Hugo Boss AG. Murray expressed enthusiasm for the nomination, highlighting the respect for Hugo Boss’s management and strategy, and looks forward to contributing his expertise in retail and transformation to the board. This nomination reflects Frasers Group’s strategic positioning and influence in the premium fashion industry, underscoring its commitment to industry collaboration and expansion.

Frasers Group Advocates for Board Appointments at Boohoo
Dec 12, 2024

In an open letter to shareholders of boohoo group plc, Frasers Group PLC addressed perceived conflicts and governance issues cited by boohoo’s board as reasons for not appointing Mike Ashley and Mike Lennon as directors. Frasers urges boohoo shareholders to support these appointments at the upcoming meeting, asserting that they are beneficial for boohoo and its stakeholders.

Frasers Group to Acquire Remaining XXL ASA Shares
Dec 6, 2024

Frasers Group PLC has announced its intention to make a voluntary cash offer for all shares of XXL ASA that it doesn’t already own, valuing the company at NOK 246 million. This move is part of Frasers’ strategic plan to leverage its industry expertise to help XXL overcome current challenges and realize its growth potential.

Frasers Group Directors Increase Stakes in Company
Dec 6, 2024

Frasers Group PLC has announced that two of its Non-Executive Directors, David Daly and Richard Bottomley, have purchased additional shares in the company, signaling confidence in its future performance. On December 5, 2024, Daly acquired 3,084 shares at £6.451 each, while Bottomley bought 7,390 shares at £6.725 each, both transactions taking place in London. This move may attract attention from investors monitoring insider activities for potential market insights.

Frasers Group Reports Growth Amid Strategic Expansion
Dec 5, 2024

Frasers Group has reported continued progress in its Elevation Strategy, showcasing growth in Sports Direct UK and international expansion efforts, despite a slight dip in adjusted profit before tax. The company has achieved significant cost savings through automation and integration of acquisitions, while also forming new global brand partnerships and expanding its property investments. However, a decrease in retail revenue and challenges in consumer confidence have led to adjustments in profit expectations for the fiscal year.

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.