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Baby Bunting Group Ltd.
(Sydney:BBN)
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Rating:58Neutral
Price Target:
AU$1.50
▼(-39.02% Downside)
Action:Reiterated
Date:06/25/26
The score is primarily supported by improving gross margins and strong free cash flow growth, but it is held back by weak profitability (including negative EBIT margin) and higher leverage. Technicals add further pressure with the stock trading below key longer-term moving averages, while valuation appears relatively high with a P/E of 26.444 and no dividend yield.
Positive Factors
Gross Margin Improvement
A sustained jump in gross margin to 40.17% indicates durable improvements in pricing, product mix or supplier cost control. Higher gross margins provide a structural buffer to absorb operating cost pressure and support long‑term profitability if maintained across channels.
Negative Factors
Weak Profitability
Very low net margins and negative EBIT show operating leverage is not yet converting higher gross profit into bottom‑line results. Persistent weak profitability limits retained earnings, constrains investment capacity and raises sensitivity to cost or demand shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Improvement
A sustained jump in gross margin to 40.17% indicates durable improvements in pricing, product mix or supplier cost control. Higher gross margins provide a structural buffer to absorb operating cost pressure and support long‑term profitability if maintained across channels.
Read all positive factors
Baby Bunting Group Ltd. (BBN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$187.53M
Dividend YieldN/A
Average Volume (3M)315.55K
Price to Earnings (P/E)24.1
Beta (1Y)1.72
Revenue Growth6.88%
EPS Growth158.14%
CountryAU
Employees1,590
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding135,400,730
10 Day Avg. Volume441,528
30 Day Avg. Volume315,554
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.20
Price to Sales (P/S)0.48
P/FCF Ratio6.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.58Price Target Upside4.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.16
Revenue Forecast (FY)AU$607.99M
Baby Bunting Group Ltd. Business Overview & Revenue Model
Company Description
Baby Bunting Group Limited, along with its various subsidiaries, operates as a prominent specialist retailer providing goods for mothers and babies. The company primarily serves Australia through a network of 65 physical outlets and its e-commerce...
How the Company Makes Money
Baby Bunting primarily makes money by selling baby and nursery goods to consumers through its physical stores and e-commerce channels. Its core revenue stream is retail sales across key merchandise categories (e.g., travel systems like prams and c...
Baby Bunting Group Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 538.97M | 521.93M | 498.39M | 524.28M | 507.27M | 468.38M |
| Gross Profit | 177.90M | 209.66M | 183.65M | 159.72M | 164.00M | 144.76M |
| EBITDA | 61.29M | 56.11M | 43.28M | 65.18M | 67.05M | 62.92M |
| Net Income | 7.49M | 9.54M | 1.70M | 9.85M | 19.52M | 17.53M |
Balance Sheet | ||||||
| Total Assets | 372.21M | 340.41M | 332.20M | 343.89M | 350.67M | 301.42M |
| Cash, Cash Equivalents and Short-Term Investments | 5.17M | 12.38M | 9.53M | 5.00M | 12.24M | 10.88M |
| Total Debt | 292.94M | 166.42M | 175.41M | 175.56M | 169.18M | 135.24M |
| Total Liabilities | 253.49M | 227.76M | 231.58M | 235.95M | 235.95M | 193.66M |
| Stockholders Equity | 118.73M | 112.64M | 100.62M | 107.93M | 114.72M | 107.76M |
Cash Flow | ||||||
| Free Cash Flow | 23.81M | 38.97M | 31.45M | 34.21M | 39.75M | 24.81M |
| Operating Cash Flow | 53.70M | 51.89M | 40.06M | 43.01M | 52.37M | 36.92M |
| Investing Cash Flow | -34.31M | -12.92M | -8.60M | -8.79M | -12.62M | -12.11M |
| Financing Cash Flow | -26.18M | -36.12M | -26.93M | -41.45M | -38.39M | -27.26M |
Baby Bunting Group Ltd. Technical Analysis
Negative
2.46
Price Trends
1.46
Negative
1.59
Negative
2.13
Negative
Market Momentum
-0.04
Positive
37.67
Neutral
9.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBN, the sentiment is Negative. The current price of 2.46 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.46, and above the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 9.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BBN.
Baby Bunting Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$8.59B | 17.57 | 29.31% | 2.54% | 8.60% | 4.98% | |
63 Neutral | AU$5.94B | 10.40 | 11.55% | 3.73% | 9.50% | 29.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$404.77M | -10.24 | -69.14% | 4.00% | 4.41% | -2505.17% | |
61 Neutral | AU$262.56M | 14.01 | 8.37% | 5.85% | 5.66% | -42.42% | |
58 Neutral | AU$187.53M | 24.12 | 6.48% | ― | 6.88% | 158.14% | |
55 Neutral | AU$629.35M | 82.87 | 5.66% | ― | 18.85% | 20.89% |
* Consumer Cyclical Sector Average
AU:BBN
Baby Bunting Group Ltd.
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Baby Bunting Group Ltd. Corporate Events
Baby Bunting lifts profit and margins despite late-quarter sales softness
Jun 23, 2026
Baby Bunting Group expects FY26 pro forma NPAT of $16.0 million to $17.0 million, up 32% to 40% on the prior year, on total sales of about $553 million to $555 million, roughly 6% higher. The retailer is set to lift gross margins above 41% and del...
Baby Bunting Share Rights Lapse, Trimming Equity Incentive Pool
Mar 31, 2026
Baby Bunting Group Ltd. has announced the cessation of 129,655 share rights, listed under the ASX security code BBNAA, following their lapse on 31 March 2026. The rights expired because the conditions attached to these conditional securities were ...
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.