AIM:BOO

Stock Analysis Report

Executive Summary

boohoo group plc, through its subsidiaries, operates as an online fashion retailer in the United Kingdom, rest of Europe, the United States, and internationally.

Rewards

Earnings are forecast to grow 23.28% per year

Earnings grew by 50.9% over the past year

Risk Analysis

No risks detected for BOO from our risk checks.


Snowflake Analysis

Exceptional growth potential with outstanding track record.


Similar Companies

Share Price & News

How has boohoo group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BOO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

BOO

-2.9%

GB Online Retail

-4.4%

GB Market


1 Year Return

74.5%

BOO

11.9%

GB Online Retail

1.4%

GB Market

Return vs Industry: BOO exceeded the UK Online Retail industry which returned 11.9% over the past year.

Return vs Market: BOO exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

BOOIndustryMarket
7 Day-3.5%-2.9%-4.4%
30 Day-2.3%-7.6%-6.3%
90 Day-1.6%0.3%-2.7%
1 Year74.5%74.5%12.6%11.9%6.7%1.4%
3 Year101.0%101.0%39.9%37.1%12.6%-1.5%
5 Year1220.9%1220.9%88.6%80.3%28.8%-0.7%

Price Volatility Vs. Market

How volatile is boohoo group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is boohoo group undervalued compared to its fair value and its price relative to the market?

69.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BOO (£3.07) is trading above our estimate of fair value (£1.03)

Significantly Below Fair Value: BOO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BOO is poor value based on its PE Ratio (69.8x) compared to the Online Retail industry average (24.9x).

PE vs Market: BOO is poor value based on its PE Ratio (69.8x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: BOO is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: BOO is overvalued based on its PB Ratio (14.6x) compared to the GB Online Retail industry average (4x).


Next Steps

Future Growth

How is boohoo group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOO's forecast earnings growth (23.3% per year) is above the savings rate (0.5%).

Earnings vs Market: BOO's earnings (23.3% per year) are forecast to grow faster than the UK market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BOO's revenue (21.7% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: BOO's revenue (21.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOO's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has boohoo group performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOO has high quality earnings.

Growing Profit Margin: BOO's current net profit margins (5%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: BOO's earnings have grown significantly by 33.9% per year over the past 5 years.

Accelerating Growth: BOO's earnings growth over the past year (50.9%) exceeds its 5-year average (33.9% per year).

Earnings vs Industry: BOO earnings growth over the past year (50.9%) exceeded the Online Retail industry -7.2%.


Return on Equity

High ROE: BOO's Return on Equity (23.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is boohoo group's financial position?


Financial Position Analysis

Short Term Liabilities: BOO's short term assets (£346.9M) exceed its short term liabilities (£221.9M).

Long Term Liabilities: BOO's short term assets (£346.9M) exceed its long term liabilities (£30.1M).


Debt to Equity History and Analysis

Debt Level: BOO's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: BOO's debt to equity ratio has increased from 0.2% to 2.2% over the past 5 years.

Debt Coverage: BOO's debt is well covered by operating cash flow (1720.8%).

Interest Coverage: BOO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BOO has a high level of physical assets or inventory.

Debt Coverage by Assets: BOO's debt is covered by short term assets (assets are 58.3x debt).


Next Steps

Dividend

What is boohoo group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%5.3%industryaverage3.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BOO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BOO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BOO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BOO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BOO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BOO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

John Lyttle (51yo)

0.9yrs

Tenure

0

Mr. John William Lyttle is the Chief Executive Officer and Director at boohoo group plc since March 15, 2019. M. Lyttle was the Chief Operating Officer of Primark Stores Ltd., a division of Associated Brit ...


Leadership Team

NamePositionTenureCompensationOwnership
Mahmud Kamani
Co-Founder & Group Executive Chairman0.9yrsUK£1.06m17.37% £621.9m
Carol Kane
Group Co-Founder & Executive Director0yrsUK£1.07m2.69% £96.2m
Neil Catto
CFO & Executive Director0yrsUK£1.24m0.0056% £199.0k
John Lyttle
CEO & Director0.9yrsno datano data
Jo Graham
Chief Information Officer0.8yrsno datano data
Keri Devine
Company Secretary & General Counsel5.4yrsno datano data
Lucy Clough
HR Director2.1yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: BOO's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mahmud Kamani
Co-Founder & Group Executive Chairman0.9yrsUK£1.06m17.37% £621.9m
Carol Kane
Group Co-Founder & Executive Director0yrsUK£1.07m2.69% £96.2m
Neil Catto
CFO & Executive Director0yrsUK£1.24m0.0056% £199.0k
John Lyttle
CEO & Director0.9yrsno datano data
Iain McDonald
Independent Non-Executive Director2.4yrsUK£50.00k0.040% £1.4m
Brian Small
Independent Deputy Chairman of the Board0.08yrsno data0.0034% £122.8k
Pierre Marie Cuilleret
Independent Non-Executive Director2.4yrsUK£50.00k0.018% £648.2k
Sara Murray
Senior Independent Director1.3yrsUK£50.00k0.010% £362.2k

1.1yrs

Average Tenure

52yo

Average Age

Experienced Board: BOO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

boohoo group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: boohoo group plc
  • Ticker: BOO
  • Exchange: AIM
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£3.579b
  • Shares outstanding: 1.17b
  • Website: https://www.boohooplc.com

Number of Employees


Location

  • boohoo group plc
  • 49-51 Dale Street
  • Manchester
  • Greater Manchester
  • M1 2HF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2014
1B9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2014
BHHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2014
BHOO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 2014

Biography

boohoo group plc, through its subsidiaries, operates as an online fashion retailer in the United Kingdom, rest of Europe, the United States, and internationally. The company designs, sources, markets, and sells clothing, shoes, accessories, and beauty products for 16-30 year old men and women. boohoo group plc provides its products under the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, and Miss Pap brands. The company was formerly known as boohoo.com plc and changed its name to boohoo group plc in July 2018. boohoo group plc was founded in 2006 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:56
End of Day Share Price2020/02/25 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.