Shoe Zone (SHOE) AI Stock Analysis

• Market Cap: £47.38M
• Dividend Yield: 16.98%
• Average Volume (3M): 22.86K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.37
• Revenue Growth: -2.62%
• EPS Growth: -43.46%
• Country: UK
• Employees: 2,374
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.16
• Shares Outstanding: 46,226,830
• 10 Day Avg. Volume: 9,637
• 30 Day Avg. Volume: 22,863
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.28
• Price to Cash Flow (P/CF): 0.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Shoe Zone's overall stock score reflects a combination of solid valuation, positive corporate events, and stable yet challenged financial performance. Despite a decline in revenue and profitability, the company's strong dividend yield and low P/E ratio suggest undervaluation. The corporate events highlight strong shareholder confidence, providing a positive outlook. However, caution is warranted due to mixed technical indicators and declining cash flow generation.

Shoe Zone Business Overview & Revenue Model

Company Description

Shoe Zone (SHOE) is a leading footwear retailer in the United Kingdom, specializing in providing a wide range of affordable shoes for the entire family. The company operates through a network of high street stores and an online platform, offering a variety of styles including casual, formal, and sports shoes. Shoe Zone's core mission is to deliver value-for-money products to its customers by maintaining a comprehensive selection of footwear at competitive prices.

How the Company Makes Money

Shoe Zone makes money primarily through the sale of footwear across its extensive network of retail stores and its online e-commerce platform. The company's revenue model is based on high-volume sales at low margins, ensuring affordability for customers while maintaining profitability. Key revenue streams include the sale of private-label shoes, which are sourced directly from manufacturers to keep costs low, and branded footwear, which is offered at discounted prices. Additionally, Shoe Zone benefits from strategic partnerships with well-known footwear brands, allowing it to offer a diverse product range. The company's ability to control costs through efficient supply chain management and economies of scale also contributes significantly to its earnings.

Shoe Zone Financial Statement Overview

Summary

Shoe Zone demonstrates stable financial performance with strong margins, but declining revenue and profitability pose challenges. The balance sheet is stable yet slightly leveraged, and cash flow generation has declined significantly, impacting overall financial health.

Income Statement

Shoe Zone has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 22.0%, which is stable but slightly below the previous year's 24.7%. The net profit margin has decreased to around 4.6% from 8.0% in the prior year, indicating reduced profitability. Revenue declined by about 2.6% year-over-year, which is a point of concern. However, the EBIT and EBITDA margins remain healthy at approximately 7.0% and 18.1% respectively, though both have declined year-over-year. The company should focus on improving revenue growth and maintaining profitability.

Balance Sheet

The balance sheet highlights a stable but slightly leveraged position for Shoe Zone. The debt-to-equity ratio is approximately 1.07, indicating a moderate level of leverage. Return on equity (ROE) stands at roughly 22.7%, which is strong and suggests effective utilization of equity. The equity ratio is about 32.5%, showing a solid but not overly conservative financial structure. Continued focus on debt management and improving equity levels could enhance financial stability.

Cash Flow

Shoe Zone's cash flow statement presents a cautious outlook. The free cash flow growth rate has significantly declined by approximately 62.4%, reflecting reduced cash generation capacity. The operating cash flow to net income ratio is 2.85, indicating strong cash flow relative to earnings. However, the free cash flow to net income ratio is 1.29, which, while positive, shows a decrease from previous efficiency levels. The company needs to focus on improving free cash flow generation to bolster its cash position.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
166.74M	161.32M	165.66M	156.16M	119.14M	122.57M
	Gross Profit
41.95M	35.52M	40.85M	36.40M	32.90M	12.28M
	EBIT
17.97M	11.32M	17.05M	15.68M	13.46M	-8.16M
	EBITDA
28.75M	29.21M	33.70M	30.78M	29.67M	14.81M
	Net Income Common Stockholders
14.30M	7.42M	13.22M	10.85M	7.01M	-11.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.11M	3.64M	16.35M	24.43M	19.02M	13.27M
	Total Assets
68.65M	100.55M	98.84M	101.57M	97.93M	107.67M
	Total Debt
0.00	34.96M	35.29M	35.84M	47.38M	64.39M
	Net Debt
-9.11M	31.32M	18.94M	11.42M	28.36M	51.12M
	Total Liabilities
36.91M	67.91M	65.49M	64.33M	74.52M	95.27M
	Stockholders Equity
31.73M	32.64M	33.35M	37.24M	23.42M	12.40M
Cash Flow		Free Cash Flow
26.69M	9.61M	25.56M	24.55M	27.90M	12.23M
	Operating Cash Flow
37.96M	21.11M	36.93M	29.77M	29.30M	15.04M
	Investing Cash Flow
-11.20M	-11.51M	-10.89M	-1.64M	-1.41M	-2.81M
	Financing Cash Flow
-35.80M	-22.32M	-34.11M	-22.20M	-22.64M	-10.72M

Shoe Zone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.50
• 50DMA: Positive
• 100DMA: Positive
• 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:SHOE, the sentiment is Positive. The current price of 102.5 is above the 20-day moving average (MA) of 94.30, above the 50-day MA of 96.86, and below the 200-day MA of 127.91, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHOE.

Shoe Zone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	83 Outperform	£14.16B	19.73	46.76%	1.82%	11.42%	-7.03%
JD	77 Outperform	£4.04B	12.57	14.67%	1.20%	2.85%	61.98%
SHOE	73 Outperform	£47.38M	6.39	22.48%	16.98%	-2.62%	-43.46%
FRAS	72 Outperform	£2.61B	9.19	16.46%	―	-6.82%	-37.46%
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%
ASC	52 Neutral	£377.02M	―	-48.80%	―	-18.15%	-30.29%
DEBS	48 Neutral	£310.87M	―	-96.36%	―	-16.32%	-202.39%

Shoe Zone Corporate Events

Shoe Zone PLC Successfully Passes All Resolutions at Annual General Meeting

Shoe Zone PLC held its Annual General Meeting where all resolutions were passed with significant shareholder support. The resolutions included re-elections of directors, re-appointment of auditors, and authorizations for directors to manage financial and operational aspects such as allotting securities and purchasing company shares. This outcome reflects strong shareholder confidence in the company’s leadership and strategic direction.

Shoe Zone PLC Announces AGM and Annual Report Release

Shoe Zone PLC has announced the posting of its Annual Report & Accounts and the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled to take place on March 11, 2025, in Leicester, indicating the company’s commitment to transparency and shareholder engagement. This dissemination of annual reports and AGM notice is a routine but crucial aspect of corporate governance, impacting the company’s operational transparency and stakeholder relations.