In The Style Group (AIM:ITS) - Share price, News & Analysis

Q: What is the Fair Price of ITS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ITS (£0.77) is trading below our estimate of [[fair value]] (£2.24)

ITS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

ITS Stock Overview

In The Style Group Plc, together with its subsidiaries, operates as an e-commerce womenswear fashion brand in the United Kingdom, the rest of Europe, and internationally.

Rewards

Trading at 65.9% below our estimate of its fair value

Revenue is forecast to grow 16.82% per year

Earnings have grown 33.4% per year over the past 5 years

Risk Analysis

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (£40M)

In The Style Group Competitors

Smoove

AIM:SMV

UK£38.1m

musicMagpie

AIM:MMAG

UK£44.4m

Ten Lifestyle Group

AIM:TENG

UK£46.6m

MySale Group

AIM:MYSL

UK£31.4m

Price History & Performance

Summary of all time highs, changes and price drops for In The Style Group
Historical stock prices
Current Share Price	UK£0.77
52 Week High	UK£2.30
52 Week Low	UK£0.71
Beta	0
1 Month Change	-13.07%
3 Month Change	0.66%
1 Year Change	-65.62%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-67.72%

Recent News & Updates

Apr 13

We Think In The Style Group (LON:ITS) Can Easily Afford To Drive Business Growth

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

Nov 30

Is There An Opportunity With In The Style Group Plc's (LON:ITS) 45% Undervaluation?

In this article we are going to estimate the intrinsic value of In The Style Group Plc ( LON:ITS ) by projecting its...

Shareholder Returns

	ITS	GB Online Retail	GB Market
7D	-11.0%	-0.9%	-1.1%
1Y	-65.6%	-76.5%	-9.7%

Return vs Industry: ITS exceeded the UK Online Retail industry which returned -76.5% over the past year.

Return vs Market: ITS underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is ITS's price volatile compared to industry and market?
ITS volatility
ITS Average Weekly Movement	4.6%
Online Retail Industry Average Movement	9.5%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: ITS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ITS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	133	Sam Perkins	https://corporate.inthestyle.com

In The Style Group Plc, together with its subsidiaries, operates as an e-commerce womenswear fashion brand in the United Kingdom, the rest of Europe, and internationally. It sells various fashion items through its e-commerce websites and proprietary In The Style app, as well as through digital retail wholesale partners. The company was incorporated in 2013 and is headquartered in Salford, the United Kingdom.

In The Style Group Fundamentals Summary

How do In The Style Group's earnings and revenue compare to its market cap?
ITS fundamental statistics
Market Cap	UK£40.16m
Earnings (TTM)	-UK£312.00k
Revenue (TTM)	UK£53.04m

0.8x

P/S Ratio

-128.8x

P/E Ratio

Is ITS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITS income statement (TTM)
Revenue	UK£53.04m
Cost of Revenue	UK£29.33m
Gross Profit	UK£23.72m
Other Expenses	UK£24.03m
Earnings	-UK£312.00k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0059
Gross Margin	44.71%
Net Profit Margin	-0.59%
Debt/Equity Ratio	0%

How did ITS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ITS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ITS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ITS. This is calculated by dividing ITS's market cap by their current preferred multiple.
What is ITS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£40.16m

ITS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	-49.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ITS's PS Ratio compare to its peers?

ITS PS Ratio vs Peers

The above table shows the PS ratio for ITS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1x
SMV Smoove	1.9x	n/a	UK£38.1m
MMAG musicMagpie	0.3x	6.9%	UK£44.4m
TENG Ten Lifestyle Group	1.2x	13.6%	UK£46.6m
MYSL MySale Group	0.5x	n/a	UK£31.4m
ITS In The Style Group	0.8x	16.8%	UK£40.2m

Forward PS

Price-To-Sales vs Peers: ITS is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1x).

Price to Earnings Ratio vs Industry

How does ITS's PE Ratio compare vs other companies in the GB Online Retail Industry?

Price-To-Sales vs Industry: ITS is expensive based on its Price-To-Sales Ratio (0.8x) compared to the UK Online Retail industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is ITS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ITS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: ITS is expensive based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

Share Price vs Fair Value

What is the Fair Price of ITS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ITS (£0.77) is trading below our estimate of fair value (£2.24)

Significantly Below Fair Value: ITS is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ITS's PEG Ratio to determine if it is good value.

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Future Growth

How is In The Style Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ITS's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if ITS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if ITS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITS's revenue (16.8% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: ITS's revenue (16.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ITS's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has In The Style Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ITS is currently unprofitable.

Growing Profit Margin: ITS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ITS is unprofitable, but has reduced losses over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare ITS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ITS is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-14.5%).

Return on Equity

High ROE: ITS has a negative Return on Equity (-2.58%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is In The Style Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ITS's short term assets (£19.3M) exceed its short term liabilities (£10.0M).

Long Term Liabilities: ITS's short term assets (£19.3M) exceed its long term liabilities (£843.0K).

Debt to Equity History and Analysis

Debt Level: ITS is debt free.

Reducing Debt: ITS had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ITS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ITS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is In The Style Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ITS has not reported any payouts.

Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure

CEO

Sam Perkins (43 yo)

0.50

Tenure

Mr. Sam Perkins is Group Chief Executive Officer of In The Style Group Plc from January 17, 2022. Mr. Perkins has a successful and proven track record of delivering strategic and commercial success across...

Leadership Team

Experienced Management: ITS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: ITS's board of directors are considered experienced (5.3 years average tenure).

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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31