LSE:THG

Stock Analysis Report

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Executive Summary

THG Holdings plc operates as an online retailer and technology company in the United Kingdom, Europe, and internationally. More Details


Snowflake Analysis

Imperfect balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: Insufficient data to determine THG's volatility change over the past year.


Market Performance


7 Day Return

-7.7%

THG

-5.8%

GB Online Retail

1.2%

GB Market


1 Year Return

n/a

THG

66.5%

GB Online Retail

4.6%

GB Market

Return vs Industry: Insufficient data to determine how THG performed against the UK Online Retail industry.

Return vs Market: Insufficient data to determine how THG performed against the UK Market.


Shareholder returns

THGIndustryMarket
7 Day-7.7%-5.8%1.2%
30 Day-11.2%-14.5%0.9%
90 Day0.7%-0.8%2.4%
1 Yearn/a66.5%66.5%10.6%4.6%
3 Yearn/a50.6%49.2%8.6%-4.5%
5 Yearn/a208.6%194.5%39.5%12.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.054x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate THG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate THG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: THG is unprofitable, so we can't compare its PE Ratio to the GB Online Retail industry average.

PE vs Market: THG is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: THG is good value based on its PB Ratio (0.1x) compared to the GB Online Retail industry average (6x).


Next Steps

Future Growth

How is THG forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

65.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: THG's revenue (21% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: THG's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THG's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has THG performed over the past 5 years?

-5,451.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: THG is currently unprofitable.

Growing Profit Margin: THG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if THG's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: THG is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (30.7%).


Return on Equity

High ROE: THG has a negative Return on Equity (-9.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is THG's financial position?


Financial Position Analysis

Short Term Liabilities: THG's short term assets (£650.4M) exceed its short term liabilities (£512.0M).

Long Term Liabilities: THG's short term assets (£650.4M) exceed its long term liabilities (£635.4M).


Debt to Equity History and Analysis

Debt Level: THG's debt to equity ratio (156.3%) is considered high.

Reducing Debt: THG's debt to equity ratio has increased from 87.3% to 156.3% 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 THG has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is THG current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if THG'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 THG'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?

2.7yrs

Average board tenure


CEO

Matt Moulding (47 yo)

no data

Tenure

Mr. Matthew J. Moulding, also known as Matt, serves as Chief Executive Officer and Executive Chairman of the Hut Group Limited, which he founded in 2004 and serves as its Executive Director since June 24, ...


Board Members

NamePositionTenureCompensationOwnership
Matthew Moulding
CEO & Executive Chairmanno datano data7.86%
£ 555.0m
John Gallemore
CFO & Executive Director12.75yrsno data0.0097%
£ 681.2k
James Pochin
General Counsel2.92yrsno datano data
Steven Whitehead
Group Commercial Director & Executive Director2.08yrsno datano data
Viki Tahmasebi
Group Communications & Portfolio CEO and Executive Director2.08yrsno datano data
Rachel Horsefield
THG Beauty CEO & Executive Director2.42yrsno datano data
Dominic Murphy
Non-Executive Director6.58yrsno data1.35%
£ 95.2m
Edward Koopman
Non-Executive Director4.83yrsno datano data
Iain McDonald
Non-Executive Director11yrsno data0.20%
£ 14.3m
Zillah Byng-Thorne
Independent Non-Executive Director2.33yrsno datano data
Damian Sanders
Independent Non-Executive Director0.33yrno datano data
W. Evans
Non-Executive Directorno datano datano data

2.7yrs

Average Tenure

46yo

Average Age

Experienced Board: THG's board of directors are not considered experienced ( 2.7 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.


Ownership Breakdown

Dilution of Shares: THG only recently listed within the past 12 months.


Top Shareholders

Company Information

THG Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: THG Plc
  • Ticker: THG
  • Exchange: LSE
  • Founded: 2004
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£7.059b
  • Shares outstanding: 1.08b
  • Website: https://www.thg.com

Number of Employees


Location

  • THG Plc
  • Voyager House
  • 5th Floor
  • Manchester
  • Greater Manchester
  • M90 3DQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THGLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2020
HG0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2020
THGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2020

Biography

THG Holdings plc operates as an online retailer and technology company in the United Kingdom, Europe, and internationally. The company provides an end-to-end direct-to-consumer e-commerce solution for cons...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 20:06
End of Day Share Price2021/03/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.