THG (LSE:THG) - Share price, News & Analysis

THG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

THG Stock Overview

THG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally.

Rewards

Revenue is forecast to grow 15.18% per year

Risk Analysis

Highly volatile share price over the past 3 months

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

THG Competitors

boohoo group

AIM:BOO

UK£781.6m

Moonpig Group

LSE:MOON

UK£723.9m

ASOS

LSE:ASC

UK£984.6m

Auction Technology Group

LSE:ATG

UK£1.1b

Price History & Performance

Summary of all time highs, changes and price drops for THG
Historical stock prices
Current Share Price	UK£0.70
52 Week High	UK£6.87
52 Week Low	UK£0.60
Beta	0
1 Month Change	-7.15%
3 Month Change	-41.18%
1 Year Change	-88.03%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-88.87%

Shareholder Returns

	THG	GB Online Retail	GB Market
7D	6.0%	-0.6%	0.4%
1Y	-88.0%	-76.6%	-9.0%

Return vs Industry: THG underperformed the UK Online Retail industry which returned -76.6% over the past year.

Return vs Market: THG underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is THG's price volatile compared to industry and market?
THG volatility
THG Average Weekly Movement	14.2%
Online Retail Industry Average Movement	10.0%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: THG is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: THG's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2004	10,046	Matt Moulding	https://www.thg.com

THG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally. The company operates pure-play sites, such as Lookfantastic, Cult Beauty, and Dermstore that offers approximately 1,300 premium brands across the skincare, haircare, cosmetics, and fragrance categories; Myprotein, a D2C sport nutrition provider that offers products across various categories, including vegan, protein, vitamin, athleisure, and healthy snacks; and THG Ingenuity, an end-to-end platform that powers businesses and brands, which offers hosting, analytics, fraud detection, logistics, and warehousing services, as well as digital brand management, including marketing, translation, and global customer services. It also engages in the online beauty and haircare businesses; and provision of skincare, haircare and cosmetics products.

THG Fundamentals Summary

How do THG's earnings and revenue compare to its market cap?
THG fundamental statistics
Market Cap	UK£866.83m
Earnings (TTM)	-UK£138.07m
Revenue (TTM)	UK£2.18b

0.4x

P/S Ratio

-6.3x

P/E Ratio

Is THG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
THG income statement (TTM)
Revenue	UK£2.18b
Cost of Revenue	UK£1.23b
Gross Profit	UK£954.40m
Other Expenses	UK£1.09b
Earnings	-UK£138.07m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.11
Gross Margin	43.78%
Net Profit Margin	-6.33%
Debt/Equity Ratio	27.9%

How did THG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for THG. This is calculated by dividing THG's market cap by their current preferred multiple.
What is THG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£866.83m

THG 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	0.5x
Enterprise Value/EBITDA	16.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

THG PS Ratio vs Peers

The above table shows the PS ratio for THG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.8x
BOO boohoo group	0.4x	9.1%	UK£781.6m
MOON Moonpig Group	2.4x	12.0%	UK£723.9m
ASC ASOS	0.2x	10.7%	UK£984.6m
ATG Auction Technology Group	12.2x	17.6%	UK£1.1b
THG THG	0.4x	15.2%	UK£866.8m

Price-To-Sales vs Peers: THG is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (3.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: THG is expensive based on its Price-To-Sales Ratio (0.4x) compared to the UK Online Retail industry average (0.4x)

Price to Sales Ratio vs Fair Ratio

What is THG'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.

THG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	1.1x

Price-To-Sales vs Fair Ratio: THG is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate THG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate THG's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is THG forecast to perform in the next 1 to 3 years based on estimates from 11 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

23.6%

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 (15.2% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: THG's revenue (15.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has THG 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

-41.6%

Historical annual 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: THG is unprofitable, and losses have increased over the past 5 years at a rate of 41.6% per year.

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 (-14.5%).

Return on Equity

High ROE: THG has a negative Return on Equity (-7.86%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is THG's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: THG's short term assets (£1.3B) exceed its short term liabilities (£783.7M).

Long Term Liabilities: THG's short term assets (£1.3B) exceed its long term liabilities (£884.3M).

Debt to Equity History and Analysis

Debt Level: THG has more cash than its total debt.

Reducing Debt: THG's debt to equity ratio has reduced from 213.3% to 27.9% 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: THG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: THG has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 27.3% each year

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Dividend

What is THG 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
Cash Flow Coverage

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.

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 THG has not reported any payouts.

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Management

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

5.0yrs

Average board tenure

CEO

Matt Moulding (49 yo)

3.58yrs

Tenure

UK£453,000

Compensation

Mr. Matthew J. Moulding, also known as Matt, serves as Chief Executive Officer of THG Plc since 2008 and also serves as its Director. He had been Executive Chairman of THG Plc (formerly known as THG Holdin...

CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD549.17K) is below average for companies of similar size in the UK market ($USD1.38M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: THG's board of directors are considered experienced (5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: THG insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31