company background image
AO.

AO World LSE:AO. Stock Report

Last Price

UK£0.77

Market Cap

UK£368.2m

7D

5.3%

1Y

-70.4%

Updated

25 May, 2022

Data

Company Financials +
AO. fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

AO. Stock Overview

AO World plc, together with its subsidiaries, operates as an online retailer of domestic appliances and consumer electronics in the United Kingdom and Europe.

AO World Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AO World
Historical stock prices
Current Share PriceUK£0.77
52 Week HighUK£2.72
52 Week LowUK£0.65
Beta0.64
1 Month Change-8.76%
3 Month Change-10.82%
1 Year Change-70.37%
3 Year Change-31.81%
5 Year Change-46.49%
Change since IPO-79.62%

Recent News & Updates

Apr 22
Estimating The Fair Value Of AO World plc (LON:AO.)

Estimating The Fair Value Of AO World plc (LON:AO.)

Does the April share price for AO World plc ( LON:AO. ) reflect what it's really worth? Today, we will estimate the...

Feb 03
Investors Will Want AO World's (LON:AO.) Growth In ROCE To Persist

Investors Will Want AO World's (LON:AO.) Growth In ROCE To Persist

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

Shareholder Returns

AO.GB Online RetailGB Market
7D5.3%3.2%1.0%
1Y-70.4%-68.6%-2.8%

Return vs Industry: AO. matched the UK Online Retail industry which returned -69.5% over the past year.

Return vs Market: AO. underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is AO.'s price volatile compared to industry and market?
AO. volatility
AO. Average Weekly Movement8.5%
Online Retail Industry Average Movement9.8%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.4%
10% least volatile stocks in GB Market3.0%

Stable Share Price: AO. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AO.'s weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20004,400John Robertshttps://www.ao-world.com

AO World plc, together with its subsidiaries, operates as an online retailer of domestic appliances and consumer electronics in the United Kingdom and Europe. The company retails fridge freezers, cookers and washing machines, and audiovisual equipment, as well as computing, mobile, and gaming products. It also provides logistics and transport services.

AO World Fundamentals Summary

How do AO World's earnings and revenue compare to its market cap?
AO. fundamental statistics
Market CapUK£368.23m
Earnings (TTM)-UK£6.30m
Revenue (TTM)UK£1.70b

0.2x

P/S Ratio

-58.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AO. income statement (TTM)
RevenueUK£1.70b
Cost of RevenueUK£1.40b
Gross ProfitUK£303.20m
Other ExpensesUK£309.50m
Earnings-UK£6.30m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 15, 2022

Earnings per share (EPS)-0.013
Gross Margin17.79%
Net Profit Margin-0.37%
Debt/Equity Ratio22.2%

How did AO. perform over the long term?

See historical performance and comparison

Valuation

Is AO World undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


4.03x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: AO. (£0.77) is trading above our estimate of fair value (£0.76)

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


Price To Earnings Ratio

PE vs Industry: AO. is unprofitable, so we can't compare its Price-To-Earnings Ratio to the European Online Retail industry average.

PE vs Market: AO. is unprofitable, so we can't compare its Price-To-Earnings Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AO. is overvalued based on its Price-To-Book Ratio (4x) compared to the GB Online Retail industry average (2x).


Future Growth

How is AO World forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


53.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AO. is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AO. is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AO. is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AO.'s revenue (2% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: AO.'s revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AO. is forecast to be unprofitable in 3 years.


Past Performance

How has AO World 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


37.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AO. is currently unprofitable.

Growing Profit Margin: AO. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AO. is unprofitable, but has reduced losses over the past 5 years at a rate of 37.7% per year.

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

Earnings vs Industry: AO. is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (0%).


Return on Equity

High ROE: AO. has a negative Return on Equity (-7.21%), as it is currently unprofitable.


Financial Health

How is AO World's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AO.'s short term assets (£304.2M) do not cover its short term liabilities (£371.2M).

Long Term Liabilities: AO.'s short term assets (£304.2M) exceed its long term liabilities (£84.7M).


Debt to Equity History and Analysis

Debt Level: AO.'s net debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: AO.'s debt to equity ratio has increased from 1.1% to 22.2% over the past 5 years.


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 AO. has enough cash runway based on its current free cash flow.

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


Dividend

What is AO World 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 AO.'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AO.'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 AO.'s dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AO.'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 AO. has not reported any payouts.


Discover strong dividend paying companies

Management

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

11.9yrs

Average management tenure


CEO

John Roberts (47 yo)

22.33yrs

Tenure

UK£976,655

Compensation

Mr. John Roberts founded AO World Plc in 2000 and has been its Executive Director since August 02, 2005. Mr. Roberts is responsible for innovation and inspiring AO’s people. Mr. Roberts served as the Chief...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.23M) is about average for companies of similar size in the UK market ($USD1.02M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AO.'s management team is seasoned and experienced (11.9 years average tenure).


Board Members

Experienced Board: AO.'s board of directors are considered experienced (7.5 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.


Top Shareholders

Company Information

AO World plc's employee growth, exchange listings and data sources


Key Information

  • Name: AO World plc
  • Ticker: AO.
  • Exchange: LSE
  • Founded: 2000
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Implied Market Cap: UK£368.231m
  • Shares outstanding: 477.91m
  • Website: https://www.ao-world.com

Number of Employees


Location

  • AO World plc
  • AO, 5A The Parklands
  • Lostock
  • Bolton
  • Greater Manchester
  • BL6 4SD
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.