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Qvc Group, Inc. (QVCGB)
:QVCGB
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QVC Group
(NASDAQ:QVCGB)
41Neutral
QVC Group (QVCGB) vs. S&P 500 (SPY)
Market Cap
$128.85M
Dividend YieldN/A
Average Volume (3M)377.50K
Price to Earnings (P/E)―
Beta (1Y)-0.31
Revenue Growth-9.40%
EPS Growth-461.92%
CountryUS
Employees18,984
SectorConsumer Cyclical
Sector Strength46
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-3.31
Shares Outstanding9,114,716
10 Day Avg. Volume49,244
30 Day Avg. Volume377,497
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.01
Price to Cash Flow (P/CF)9.90
P/FCF Ratio0.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
QVC Group Business Overview & Revenue Model
Company DescriptionQurate Retail, Inc. (QRTEB) is a leading global retailer primarily engaged in video and e-commerce retailing. The company operates several well-known brands, including QVC, HSN, and Zulily, which offer a wide range of products such as home goods, apparel, beauty products, and electronics. Qurate Retail is recognized for its unique blend of entertainment, shopping, and digital marketing, delivered through multiple platforms including television, online, and mobile applications.
How the Company Makes MoneyQurate Retail generates revenue primarily through the sale of consumer products across its various platforms, including television broadcasts, websites, and mobile applications. The company leverages its extensive reach and brand recognition to engage consumers through live video presentations, personalized shopping experiences, and curated product selections. Key revenue streams include direct sales to customers and partnerships with third-party vendors who pay fees or commissions to Qurate for showcasing and selling their products. Additionally, Qurate Retail benefits from its strategic use of data analytics to enhance customer engagement and optimize its sales channels, contributing to its overall earnings.
QVC Group Financial Statement Overview
Summary
Qurate Retail is facing significant financial challenges with declining revenue, shrinking margins, and heavy debt reliance. The income statement reveals declining profitability, while the balance sheet is burdened by high leverage. Cash flow trends show some improvement, but ongoing losses hinder stronger performance. The company's financial health indicates a need for strategic restructuring to improve profitability and reduce debt.Income Statement
Qurate Retail has experienced declining revenue, with a significant drop from $14.04 billion in 2021 to $10.24 billion in TTM 2024. Gross profit margin fell to 26.57% in TTM 2024 from 34.27% in 2020. The net profit margin is negative, at -2.71% in TTM 2024, indicating the company is not profitable currently. Additionally, both EBIT and EBITDA margins have decreased, with EBITDA margin at 7.13% in TTM 2024, down from 15.05% in 2020. These trends reflect decreasing profitability and growth challenges.48
Neutral
Balance Sheet
Qurate Retail's balance sheet indicates financial stress, with a high debt-to-equity ratio of 14.29 in TTM 2024, showing heavy reliance on debt financing. Stockholders' equity is very low at $397 million, reflecting potential risk. The equity ratio is just 3.69%, highlighting a weak capital structure. However, total liabilities have decreased marginally from $13.22 billion in 2020 to $10.29 billion in TTM 2024, indicating some improvement in debt management.42
Neutral
Cash Flow
The company has shown improvement in free cash flow, growing from negative values in 2022 to $301 million in TTM 2024. The operating cash flow to net income ratio is positive at 2.27, indicating some efficiency in converting income to cash. However, the free cash flow to net income ratio is negative due to net losses, reflecting ongoing profitability issues.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.24B | 10.91B | 12.11B | 14.04B | 14.18B | 13.46B | Gross Profit |
| 2.72B | 3.69B | 3.69B | 4.81B | 4.89B | 4.56B | EBIT |
| 708.00M | 590.00M | 1.10B | 1.09B | 1.57B | 1.17B | EBITDA |
| 730.00M | 924.00M | -1.37B | 1.99B | 2.13B | 358.00M | Net Income Common Stockholders |
| -277.00M | -145.00M | -2.53B | 340.00M | 1.20B | -405.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 653.00M | 1.12B | 1.27B | 587.00M | 806.00M | 673.00M | Total Assets |
| 17.84B | 11.37B | 12.57B | 16.25B | 17.00B | 17.30B | Total Debt |
| 7.37B | 7.27B | 6.87B | 6.99B | 6.94B | 7.41B | Net Debt |
| 6.72B | 6.13B | 5.60B | 6.40B | 6.13B | 6.74B | Total Liabilities |
| 12.10B | 10.88B | 12.05B | 13.22B | 13.27B | 12.33B | Stockholders Equity |
| 5.62B | 385.00M | 412.00M | 2.89B | 3.60B | 4.84B |
| Cash Flow | Free Cash Flow | ||||
| 301.00M | 576.00M | -119.00M | 794.00M | 2.14B | 825.00M | Operating Cash Flow |
| 630.00M | 919.00M | 194.00M | 1.23B | 2.46B | 1.28B | Investing Cash Flow |
| -221.00M | -54.00M | 601.00M | -501.00M | -161.00M | -600.00M | Financing Cash Flow |
| -646.00M | -1.01B | -72.00M | -914.00M | -2.18B | -661.00M |
QVC Group Technical Analysis
Positive
6.86
Price Trends
4.95
Positive
3.97
Positive
3.91
Positive
Market Momentum
0.52
Positive
56.90
Neutral
67.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGB, the sentiment is Positive. The current price of 6.86 is above the 20-day moving average (MA) of 6.36, above the 50-day MA of 4.95, and above the 200-day MA of 3.91, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
QVC Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.77B | 13.16 | 40.08% | 2.44% | 3.53% | 13.86% | |
70 Outperform | $14.89B | 30.24 | 42.55% | ― | 9.33% | 50.05% | |
69 Neutral | $4.38B | 16.55 | 186.35% | ― | 11.85% | ― | |
66 Neutral | $4.00B | 13.76 | 29.58% | 3.17% | 2.20% | 120.00% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | $739.19M | 6.82 | 2.83% | 24.47% | -7.18% | -65.92% | |
41 Neutral | $128.85M | ― | ― | -9.40% | -461.92% |
* Consumer Cyclical Sector Average
Performance Comparison
QVCGB
QVC Group
6.86
2.62
61.79%
DKS
Dick's Sporting Goods
182.87
-21.55
-10.54%
KSS
Kohl's
7.17
-16.00
-69.05%
JWN
Nordstrom
23.34
5.28
29.24%
BURL
Burlington Stores
231.50
31.59
15.80%
VVV
Valvoline
34.51
-8.76
-20.24%
QVC Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -19.29% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful completion of Project Athens, strong performance in QVC International, and a strategic shift towards social commerce to drive future growth. However, it also noted challenges such as revenue decline, customer count decrease, and significant impact from cord cutting. Overall, the call presents a mix of positive strategic direction and ongoing operational challenges.Highlights
Project Athens Success
QVC Group successfully completed Project Athens, achieving more than $500 million of run rate OIBDA improvement compared to the objective of $300 million to $600 million.
QVC International Performance
QVC International was the best-performing business in Q4, with OIBDA increasing 12% year-on-year and adjusted OIBDA margin expanding by 170 basis points.
Social Commerce Strategy
QVC Group introduced a new strategy to return to growth over the next 3 years by focusing on live social shopping, with a target of generating $1.5 billion of run rate revenue from social and streaming within this period.
Debt Reduction and Financial Stability
QVC Group reduced gross debt by $442 million, extended the maturity profile, and maintained a leverage ratio of 3.1 times, below the maximum covenant threshold of 4.5 times.
Lowlights
Revenue Decline
Total revenue declined by 6% in Q4, driven by linear television declines, a cautious consumer environment, and distractions from headline events.
Customer Count Decrease
QxH customer count declined 9% in Q4, with a 7% decrease in existing and reactivated customers and a 17% decline in new customers.
Cornerstone Performance Challenges
Cornerstone's OIBDA declined by $22 million, contributing significantly to the consolidated OIBDA decrease of $28 million or 8% year-over-year.
Cord Cutting Impact
Cord cutting reduced the number of linear homes reached by QVC and HSN's main channels by 44% and 47%, respectively, since 2018.
Impairment Charge
A $1.5 billion noncash impairment charge was recognized at QxH related to goodwill and trade names.
Company Guidance
During QVC Group's 2024 Q4 earnings call, the company provided detailed guidance on several key financial metrics and strategic initiatives. Total revenue declined by 6% in Q4, attributed to linear TV declines and a cautious consumer environment. However, QVC International maintained flat revenue and expanded its adjusted OIBDA margin by 170 basis points, with OIBDA increasing 12% year-over-year. Cornerstone brands experienced a significant $22 million decline in OIBDA, contributing to three-fourths of the company's total OIBDA decrease of $28 million or 8% year-over-year. The full year saw more than $500 million of run-rate OIBDA improvement, exceeding the Project Athens goal of $300 million to $600 million, and an expansion of OIBDA margins by 220 basis points. The company also improved free cash flow by over $500 million from 2022 to 2024, excluding insurance proceeds. QVC Group reduced operating expenses by 8% and SG&A costs by 9% through lower commissions and personnel costs. Additionally, QVC International increased its adjusted OIBDA margin by 70 basis points for the year. QVC Group aims to generate $1.5 billion in run-rate revenue from social and streaming within the next three years, maintaining a stable double-digit adjusted OIBDA margin and a long-term leverage target of 2.5 times or better.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.