AO World plc, together with its subsidiaries, operates as an online retailer of domestic appliances and consumer electronics in the United Kingdom, Germany, and rest of Europe. More Details
High growth potential with mediocre balance sheet.
Share Price & News
How has AO World's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AO.'s share price has been volatile over the past 3 months.
7 Day Return
GB Online Retail
1 Year Return
GB Online Retail
Return vs Industry: AO. exceeded the UK Online Retail industry which returned 63.2% over the past year.
Return vs Market: AO. exceeded the UK Market which returned -14.3% over the past year.
Price Volatility Vs. Market
How volatile is AO World's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StIs AO World (LON:AO.) A Risky Investment?
3 weeks ago | Simply Wall StWe Think AO World's (LON:AO.) Statutory Profit Might Understate Its Earnings Potential
1 month ago | Simply Wall StIf You Had Bought AO World (LON:AO.) Stock A Year Ago, You Could Pocket A 136% Gain Today
Is AO World undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AO. (£1.89) is trading above our estimate of fair value (£1.81)
Significantly Below Fair Value: AO. is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AO. is poor value based on its PE Ratio (525.3x) compared to the GB Online Retail industry average (27.7x).
PE vs Market: AO. is poor value based on its PE Ratio (525.3x) compared to the UK market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: AO. is poor value based on its PEG Ratio (7.7x)
Price to Book Ratio
PB vs Industry: AO. is overvalued based on its PB Ratio (11.1x) compared to the GB Online Retail industry average (3.7x).
How is AO World forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AO.'s forecast earnings growth (68.4% per year) is above the savings rate (1.2%).
Earnings vs Market: AO.'s earnings (68.4% per year) are forecast to grow faster than the UK market (23.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AO.'s revenue (10.7% per year) is forecast to grow faster than the UK market (6.3% per year).
High Growth Revenue: AO.'s revenue (10.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AO.'s Return on Equity is forecast to be high in 3 years time (28.4%)
How has AO World performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AO. has a large one-off loss of £3.4M impacting its March 31 2020 financial results.
Growing Profit Margin: AO. became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: AO. has become profitable over the past 5 years, growing earnings by -15.4% per year.
Accelerating Growth: AO. has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: AO. has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-9.5%).
Return on Equity
High ROE: AO.'s Return on Equity (1.8%) is considered low.
How is AO World's financial position?
Financial Position Analysis
Short Term Liabilities: AO.'s short term assets (£218.0M) do not cover its short term liabilities (£271.8M).
Long Term Liabilities: AO.'s short term assets (£218.0M) exceed its long term liabilities (£97.5M).
Debt to Equity History and Analysis
Debt Level: AO.'s debt to equity ratio (27.5%) is considered satisfactory.
Reducing Debt: AO.'s debt to equity ratio has increased from 2.5% to 27.5% over the past 5 years.
Debt Coverage: AO.'s debt is well covered by operating cash flow (64.4%).
Interest Coverage: Insufficient data to determine if AO.'s interest payments on its debt are well covered by EBIT.
What is AO World current dividend yield, its reliability and sustainability?
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.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AO.'s dividend in 3 years as they are not forecast to pay a notable one for the UK market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Roberts (46 yo)
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 ($USD941.42K) is about average for companies of similar size in the UK market ($USD1.24M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
|Group CFO & Executive Director||5.08yrs||UK£728.42k||0.018% |
|Director of Group Legal & Company Secretary||no data||no data||no data|
|Chief Brand and People Officer||no data||no data||no data|
|Managing Director of Expert Logistics||14.25yrs||no data||no data|
Experienced Management: AO.'s management team is seasoned and experienced (5.1 years average tenure).
|Group CFO & Executive Director||5.08yrs||UK£728.42k||0.018% |
|Senior Independent Non-Executive Director||1.17yrs||UK£72.81k||0.011% |
|Independent Non-Executive Chairman||4.17yrs||UK£200.00k||no data|
|Independent Non-Executive Director||1.67yrs||UK£66.37k||no data|
|Non-Executive Director||14.75yrs||UK£55.00k||4.83% |
|Independent Non-Executive Director||2.17yrs||UK£55.00k||no data|
Experienced Board: AO.'s board of directors are considered experienced (4.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AO. insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AO World plc's company bio, employee growth, exchange listings and data sources
- Name: AO World plc
- Ticker: AO.
- Exchange: LSE
- Founded: 2000
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Market Cap: UK£891.860m
- Shares outstanding: 471.88m
- Website: https://www.ao-world.com
Number of Employees
- AO World plc
- AO Park
- 5A The Parklands
- Greater Manchester
- BL6 4SD
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AO.||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||Feb 2014|
|AOL||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||GBP||Feb 2014|
|81A||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Feb 2014|
|AOWD.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Feb 2014|
AO World plc, together with its subsidiaries, operates as an online retailer of domestic appliances and consumer electronics in the United Kingdom, Germany, and rest of Europe. The company retails fridge f ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/22 03:12|
|End of Day Share Price||2020/09/21 00:00|
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.