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Adore Beauty Group Ltd. (AU:ABY)
ASX:ABY
Australian Market
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Adore Beauty Group Ltd. (ABY) AI Stock Analysis

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AU:ABY

Adore Beauty Group Ltd.

(Sydney:ABY)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
AU$1.50
▲(32.74% Upside)
Adore Beauty Group Ltd. shows strong technical momentum and a stable financial foundation with robust revenue growth. However, the high P/E ratio and challenges in profitability and cash flow generation are significant concerns. The absence of earnings call insights and corporate events leaves these factors as the primary influences on the stock's score.

Adore Beauty Group Ltd. (ABY) vs. iShares MSCI Australia ETF (EWA)

Adore Beauty Group Ltd. Business Overview & Revenue Model

Company DescriptionAdore Beauty Group Limited operates an integrated content, marketing, and e-commerce retail platform in Australia and New Zealand. The company retails beauty and personal care products, including skincare, make-up, haircare, fragrance, and wellness products under various brands. It also offers editorial content platform that offers beauty news, reviews, tips, and expert how-to articles to educate the customers on purchasing decisions. Adore Beauty Group Limited was founded in 2000 and is based in Northcote, Australia.
How the Company Makes MoneyAdore Beauty generates revenue primarily through the sale of beauty and personal care products on its online platform. Key revenue streams include direct sales of branded products, private label offerings, and subscription services. The company benefits from a growing customer base and repeat purchases, driven by its loyalty program and targeted marketing strategies. Additionally, Adore Beauty may engage in partnerships with beauty brands for exclusive launches or promotions, which further enhances its revenue potential. Seasonal sales, promotions, and limited-time offers also contribute to spikes in sales, while the company's strong online presence and effective digital marketing campaigns help attract new customers.

Adore Beauty Group Ltd. Financial Statement Overview

Summary
Adore Beauty Group Ltd. demonstrates strong revenue growth and a solid equity position, indicating a stable financial foundation. However, the company faces challenges in profitability and cash flow generation, which require strategic focus to enhance operational efficiency and cash conversion. The balance sheet's low leverage is a positive aspect, providing financial flexibility. Overall, the company is on a growth trajectory but needs to address profitability and cash flow management to sustain long-term success.
Income Statement
75
Positive
Adore Beauty Group Ltd. has shown a strong revenue growth rate of 39.7% in the latest period, indicating robust sales expansion. The gross profit margin improved to 35.31%, reflecting efficient cost management. However, the net profit margin remains low at 0.38%, suggesting limited profitability after expenses. The EBIT margin of 2.05% and EBITDA margin of 2.32% indicate moderate operational efficiency. Overall, the income statement reflects strong sales growth but highlights the need for improved profitability.
Balance Sheet
70
Positive
The company's debt-to-equity ratio of 0.26 indicates a conservative leverage position, which is favorable for financial stability. The return on equity (ROE) is modest at 1.89%, suggesting limited returns to shareholders. The equity ratio of 48.03% shows a solid equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with low leverage but highlights the need for improved returns on equity.
Cash Flow
60
Neutral
Adore Beauty Group Ltd. experienced a significant decline in free cash flow growth, down by 1825.17%, indicating challenges in generating cash from operations. The operating cash flow to net income ratio of 0.23 suggests limited cash generation relative to net income. The free cash flow to net income ratio of 0.33 indicates moderate cash conversion efficiency. Overall, the cash flow statement highlights challenges in cash generation and conversion, necessitating improvements in operational cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue198.81M198.81M195.72M182.18M199.66M179.28M
Gross Profit70.21M70.21M65.47M38.51M44.64M39.56M
EBITDA4.62M4.62M5.45M883.00K5.36M1.67M
Net Income761.00K761.00K2.17M-559.00K2.38M845.00K
Balance Sheet
Total Assets83.81M83.81M67.67M62.41M59.23M56.39M
Cash, Cash Equivalents and Short-Term Investments12.67M12.67M32.85M27.76M29.77M29.00M
Total Debt10.45M10.45M1.72M624.00K1.17M1.35M
Total Liabilities43.55M43.55M28.02M26.19M21.91M22.13M
Stockholders Equity40.26M40.26M39.65M36.22M37.32M34.26M
Cash Flow
Free Cash Flow2.60M2.60M4.90M-1.42M1.26M2.12M
Operating Cash Flow7.94M7.94M8.32M820.00K3.15M4.12M
Investing Cash Flow-26.89M-26.89M-3.42M-2.24M-1.89M-1.99M
Financing Cash Flow-1.24M-1.24M195.00K-587.00K-494.00K10.31M

Adore Beauty Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.13
Price Trends
50DMA
1.10
Positive
100DMA
0.93
Positive
200DMA
0.85
Positive
Market Momentum
MACD
0.02
Negative
RSI
54.49
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABY, the sentiment is Positive. The current price of 1.13 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.10, and above the 200-day MA of 0.85, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ABY.

Adore Beauty Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
AU$60.76M9.3217.58%6.14%-13.36%14.09%
66
Neutral
AU$55.73M12.6612.71%7.82%8.39%3.21%
65
Neutral
AU$182.11M12.1316.91%7.39%-0.35%-1.96%
65
Neutral
AU$106.17M139.511.90%1.58%-65.09%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
AU$371.00M38.768.94%4.72%465.60%
46
Neutral
$313.81M-40.52%4.44%6.24%-23341.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ABY
Adore Beauty Group Ltd.
1.13
0.09
8.65%
AU:KGN
Kogan.com
3.15
-1.56
-33.12%
AU:DSK
Dusk Group Ltd.
0.90
-0.13
-12.62%
AU:SSG
Shaver Shop Group Ltd.
1.39
0.16
13.01%
AU:BBN
Baby Bunting Group Ltd.
2.74
1.03
60.23%
AU:SHM
Shriro Holdings Ltd.
0.78
0.05
6.85%

Adore Beauty Group Ltd. Corporate Events

Adore Beauty Appoints Jason Murray as Chair-elect
Oct 16, 2025

Adore Beauty Group Limited has appointed Jason Murray as an Independent Non-Executive Director and Chair-elect, effective November 1, 2025. Murray, who brings extensive retail experience from his previous roles at Just Group Ltd and Pepkor South East Asia, will replace Marina Go following the 2025 AGM. His appointment is expected to enhance Adore Beauty’s strategic direction and operational capabilities, potentially benefiting both customers and shareholders.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Announces Director Departure
Oct 1, 2025

Adore Beauty Group Ltd. has announced the cessation of James Height as an Alternate Non-Executive Director, effective September 30, 2025. Height held 10,400,000 fully paid ordinary shares, which he managed in concert with Kate Morris, indicating a significant change in the company’s board composition that could impact its strategic direction.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.25 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Announces Board Changes with Key Retirements
Sep 5, 2025

Adore Beauty Group Limited announced significant changes to its board, with Chair Marina Go and Co-Founder Kate Morris retiring from their positions. These leadership changes come as the company continues to focus on its growth strategy, with both Go and Morris expressing confidence in the company’s future. The board is in the process of identifying a new Chair, and the Founders retain the right to nominate a Director as long as they hold a significant shareholding.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Announces 2025 Annual General Meeting
Sep 3, 2025

Adore Beauty Group Limited has announced its 2025 Annual General Meeting, scheduled for November 21, 2025. This meeting will provide an opportunity for stakeholders to engage with the company’s leadership, and the closing date for director nominations is September 12, 2025, indicating a potential refresh in its board composition.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Group Ltd. Announces Cessation of Performance Rights
Aug 29, 2025

Adore Beauty Group Ltd. has announced the cessation of 140,757 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic positioning in the market.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Group Ltd. Unveils 2025 Corporate Governance Strategy
Aug 24, 2025

Adore Beauty Group Ltd. has released its 2025 Corporate Governance Statement, outlining its commitment to effective management and oversight, ethical practices, and responsible remuneration. The statement emphasizes the company’s focus on safeguarding corporate report integrity, timely disclosures, and risk management, which are crucial for maintaining stakeholder trust and enhancing board effectiveness.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Group Ltd. Achieves Record Profit Margins in FY25
Aug 24, 2025

Adore Beauty Group Ltd. has reported significant financial improvements for the fiscal year ending June 2025. The company achieved record EBIT and profit margins, with revenue reaching $198.8 million, a 1.6% increase from the previous year. The reported EBIT surged by 74.8%, and the EBITDA margin improved to 4.1%. Additionally, the company’s contactable database grew by 20.4%, indicating a strong market presence and potential for future growth.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Achieves Record Profitability and Expands Retail Presence
Aug 24, 2025

Adore Beauty Group Limited reported a record profitability for the fiscal year ending June 2025, with significant improvements in profit growth and gross margins. The company achieved a record EBITDA of $8.1 million, a 67.8% increase from the previous year, and a gross margin of 35.3%. Revenue increased by 1.6% to $198.8 million, with a focus on enhancing revenue quality. The company opened several new retail stores and plans further expansion, aiming to increase its addressable market and improve margins. Adore Beauty’s strategic initiatives, including the integration of iKOU and enhancements in online personalization, have driven growth and improved customer acquisition efficiency.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Sees Revenue Growth Amid Profit Decline Due to One-off Costs
Aug 24, 2025

Adore Beauty Group Limited reported a 1.6% increase in revenue to $198.8 million for the fiscal year ending June 30, 2025, despite a significant 65% drop in profit after tax to $761,000. The decline in profit is attributed to $2.5 million in one-off costs related to acquisitions and restructuring. The company’s Normalised EBIT, a key performance measure, stood at $4 million with a margin of 2.0%. The acquisition of iKOU Holdings Pty Ltd and its subsidiaries on July 31, 2024, impacted the company’s financials, particularly the net tangible assets, which saw a decrease due to cash outflow for the acquisition and increased lease liabilities.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty to Release FY25 Financial Results on August 25
Aug 6, 2025

Adore Beauty Group Limited announced it will release its financial results for the fiscal year ending June 30, 2025, on August 25, 2025. The company will hold a briefing for investors and analysts on the same day. This announcement is part of Adore Beauty’s ongoing efforts to maintain transparency with its stakeholders and could impact its market positioning by providing insights into its financial health and operational performance.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.30 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025