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Baby Bunting Group Ltd. (AU:BBN)
ASX:BBN
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Baby Bunting Group Ltd. (BBN) AI Stock Analysis

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AU:BBN

Baby Bunting Group Ltd.

(Sydney:BBN)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
AU$3.00
▲(6.01% Upside)
The overall stock score of 56 reflects the company's solid revenue growth and cash flow generation, which are offset by challenges in profitability and high leverage. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio and no dividend yield. The absence of earnings call data and corporate events leaves these areas unaddressed.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability.
Cash Flow Generation
Strong cash flow generation enhances the company's ability to invest in growth opportunities and manage debt, ensuring financial stability.
Gross Margin Improvement
Improved gross margins reflect effective cost management, which can drive profitability and competitive advantage over time.
Negative Factors
High Leverage
High leverage can increase financial risk, limiting the company's flexibility to respond to market changes and invest in growth.
Negative EBIT Margins
Negative EBIT margins indicate operational inefficiencies, which could hinder profitability and long-term business health if not addressed.
Low Net Profit Margin
A low net profit margin suggests limited profitability, which may affect the company's ability to reinvest in growth and compete effectively.

Baby Bunting Group Ltd. (BBN) vs. iShares MSCI Australia ETF (EWA)

Baby Bunting Group Ltd. Business Overview & Revenue Model

Company DescriptionBaby Bunting Group Limited, together with its subsidiaries, operates as specialty retailer of maternity and baby goods in Australia. The company's principal product categories include prams, cots and nursery furniture, car safety, toys, babywear, feeding, nappies, and Manchester and associated accessories. Its products primarily cater to parents with children from newborn to three years of age, and parents-to-be. The company operates a network of 65 stores in Australia; and one store in New Zealand, as well as sells products through babybunting.com.au, an online store. Baby Bunting Group Limited was founded in 1979 and is based in Dandenong, Australia.
How the Company Makes MoneyBaby Bunting generates revenue primarily through the sale of baby and parenting products in its retail stores and online. The company employs a multi-channel retail strategy, allowing customers to shop in-store or online, which broadens its customer reach. Key revenue streams include direct sales of merchandise, offering exclusive brands, and possibly online subscriptions for baby-related services. Additionally, partnerships with suppliers and manufacturers enable Baby Bunting to negotiate favorable terms, enhancing profit margins. Seasonal promotions and loyalty programs also contribute to revenue by encouraging repeat business among customers.

Baby Bunting Group Ltd. Financial Statement Overview

Summary
Baby Bunting Group Ltd. shows solid revenue growth and improved gross margins, but faces challenges with profitability and leverage. Strong cash flow generation is a positive sign, but high debt levels and negative EBIT margins could pose risks.
Income Statement
65
Positive
The company has shown a consistent revenue growth trend over the years, with a recent 5.04% increase. Gross profit margins have improved from 30.47% to 40.17%, indicating better cost management. However, the net profit margin remains low at 1.83%, and EBIT margins have turned negative, suggesting challenges in operational efficiency.
Balance Sheet
55
Neutral
The debt-to-equity ratio is relatively high at 1.48, indicating significant leverage, which could pose risks in a volatile market. Return on equity has decreased to 8.47%, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced asset structure.
Cash Flow
70
Positive
Free cash flow has grown by 20.14%, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.53, indicating decent cash conversion efficiency. However, the free cash flow to net income ratio has slightly decreased, suggesting potential cash flow management issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue521.93M521.93M498.39M524.28M507.27M468.38M
Gross Profit189.50M209.66M183.65M159.72M164.00M144.76M
EBITDA47.16M56.11M43.28M65.18M71.72M62.92M
Net Income9.54M9.54M1.70M9.85M19.52M17.53M
Balance Sheet
Total Assets340.41M340.41M332.20M343.89M350.67M301.42M
Cash, Cash Equivalents and Short-Term Investments12.38M12.38M9.53M5.00M12.24M10.88M
Total Debt166.42M166.42M175.41M175.56M169.18M135.24M
Total Liabilities227.76M227.76M231.58M235.95M235.95M193.66M
Stockholders Equity112.64M112.64M100.62M107.93M114.72M107.76M
Cash Flow
Free Cash Flow43.39M38.97M31.45M34.21M39.75M24.81M
Operating Cash Flow51.89M51.89M40.06M43.01M52.37M36.92M
Investing Cash Flow-12.92M-12.92M-8.60M-8.79M-12.62M-12.11M
Financing Cash Flow-36.12M-36.12M-26.93M-41.45M-38.39M-27.26M

Baby Bunting Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.83
Price Trends
50DMA
2.92
Negative
100DMA
2.37
Positive
200DMA
2.05
Positive
Market Momentum
MACD
-0.05
Positive
RSI
48.02
Neutral
STOCH
74.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBN, the sentiment is Positive. The current price of 2.83 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 2.92, and above the 200-day MA of 2.05, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BBN.

Baby Bunting 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
AU$187.35M12.4816.91%7.18%-0.35%-1.96%
AU$56.04M12.8012.71%7.65%8.39%3.21%
AU$100.53M132.101.90%1.58%-65.09%
$18.38B12.79-2.54%3.03%1.52%-15.83%
€393.69M15.4711.70%4.91%3.99%-18.35%
AU$373.71M39.048.94%4.72%465.60%
$324.77M-40.52%4.29%6.24%-23341.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BBN
Baby Bunting Group Ltd.
2.83
1.03
57.22%
AU:KGN
Kogan.com
3.26
-1.25
-27.67%
AU:ADH
Adairs Ltd.
2.14
-0.40
-15.81%
AU:DSK
Dusk Group Ltd.
0.92
-0.19
-17.12%
AU:ABY
Adore Beauty Group Ltd.
1.14
0.08
7.55%
AU:SSG
Shaver Shop Group Ltd.
1.43
0.14
10.85%

Baby Bunting Group Ltd. Corporate Events

Director’s Share Acquisition Signals Confidence in Baby Bunting’s Market Position
Oct 16, 2025

The recent announcement from Baby Bunting Group Ltd. details a change in the director’s interest, specifically for Fran Ereira, who acquired 2,433 fully paid ordinary shares through an on-market trade, increasing her total holdings to 40,147 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could reassure stakeholders and investors about the company’s market position.

The most recent analyst rating on (AU:BBN) stock is a Hold with a A$2.70 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Group Ltd. Announces Successful AGM Results
Oct 14, 2025

Baby Bunting Group Ltd. announced the results of its 2025 Annual General Meeting, with all resolutions passed. The successful resolutions, including the re-election of directors and approval of remuneration reports, indicate strong shareholder support and are likely to positively impact the company’s governance and strategic direction.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.04 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Reports Steady Growth and Expands ‘Store of the Future’ Initiative
Oct 13, 2025

Baby Bunting Group Ltd. has reported a year-to-date total sales growth of 3.5% and comparable store sales growth of 2.2%, with New Zealand stores showing a 13% growth. The company is expanding its ‘Store of the Future’ initiative, planning several refurbishments and new store openings, including large format and small pilot stores. The FY26 earnings guidance remains unchanged, with expectations of a 4%-6% growth in comparable store sales and a gross margin of 41%. The company anticipates some sales pattern disruptions due to refurbishments but remains optimistic about post-refurbishment sales growth.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Announces Director’s Interest Change
Oct 13, 2025

Baby Bunting Group Ltd. announced a change in the director’s interest, specifically concerning Mark Teperson, who has adjusted his holdings of the company’s securities. The change involved the conversion of 155,763 rights into fully paid ordinary shares, reflecting a strategic move in Teperson’s investment in the company. This adjustment in director’s interest is part of the company’s ongoing governance and compliance with ASX regulations, ensuring transparency and alignment with shareholder interests.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Announces Quotation of New Securities
Oct 13, 2025

Baby Bunting Group Ltd. has announced the quotation of 480,763 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move, part of an employee incentive scheme, is expected to enhance the company’s market presence and potentially improve liquidity, benefiting stakeholders by aligning employee interests with company performance.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Director Increases Stake in Baby Bunting Group
Sep 9, 2025

Baby Bunting Group Limited announced a change in the director’s interest, with Stephen Roche acquiring an additional 22,000 fully paid ordinary shares through on-market trades, bringing his total to 100,000 shares. This acquisition reflects a significant increase in personal investment by the director, potentially signaling confidence in the company’s future performance and stability.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Director’s Share Acquisition at Baby Bunting Group Ltd.
Sep 1, 2025

Baby Bunting Group Ltd. announced a change in the director’s interest, with Debra Singh acquiring 20,000 fully paid ordinary shares through an on-market trade at $2.63 per share. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and aligning her interests with those of the shareholders.

The most recent analyst rating on (AU:BBN) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Director Increases Shareholding
Sep 1, 2025

Baby Bunting Group Limited announced a change in the director’s interest, with Francine Ereira acquiring an additional 1,000 fully paid ordinary shares through an on-market trade. This acquisition reflects a modest increase in her indirect interest via the Ereira Super Trust, indicating a continued confidence in the company’s prospects.

The most recent analyst rating on (AU:BBN) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Director Increases Shareholding
Aug 25, 2025

Baby Bunting Group Ltd. announced a change in the director’s interest, with Donna Player acquiring an additional 14,000 shares, bringing her total to 60,000 fully paid ordinary shares. This acquisition was conducted through an on-market trade at $2.44 per share, indicating a strategic move that may reflect confidence in the company’s future performance.

The most recent analyst rating on (AU:BBN) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Affirms Financial Performance Within Expectations
Aug 21, 2025

Baby Bunting Group Ltd. responded to an ASX inquiry regarding its financial performance, stating that its pro forma NPAT of $12.1 million, record total sales of $521.9 million, and a gross margin of 40.2% were within expected guidance ranges and not materially impactful on its stock value. The company emphasized that these results were anticipated based on prior market guidance and analyst forecasts, and that initial sales growth in FY26, while positive, is not considered material due to the short time frame.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Releases 2025 Sustainability Report
Aug 14, 2025

Baby Bunting Group Limited has released its 2025 Sustainability Report, highlighting its ongoing commitment to sustainable practices. The report’s release, authorized by the company’s Board, underscores Baby Bunting’s focus on integrating sustainability into its operations, which could enhance its market position and appeal to environmentally conscious stakeholders.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$1.95 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN Stock Forecast page.

Baby Bunting Reports Strong Profit Growth but Withholds Dividend
Aug 14, 2025

Baby Bunting Group Ltd. reported a significant increase in net profit for the fiscal year ending June 29, 2025, with statutory net profit rising by 462% and pro forma net profit increasing by 228% compared to the previous year. Despite this financial growth, the company announced that it will not be paying a final dividend for FY2025, reflecting a cautious approach in its financial strategy amidst ongoing restructuring and transformation projects.

The most recent analyst rating on (AU:BBN) stock is a Buy with a A$1.95 price target. To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock, see the AU:BBN 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 24, 2025