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AO World
(LSE:AO)
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Rating:70Outperform
Price Target:
108.00 p
▲(15.14% Upside)
Action:Upgraded
Date:06/18/26
The score is driven primarily by improved financial performance—stronger profitability, healthier leverage, and robust free cash flow—tempered by the company’s historical volatility. Technicals are neutral-to-mixed with price below longer-term averages, while valuation is moderately supportive on a ~14.3 P/E (with no dividend yield data).
Positive Factors
Improved profitability
Sustained net income growth and margin expansion indicate the company has rebuilt earnings power versus prior loss years. Stronger profitability increases internal funding for growth, reduces refinance dependence and supports durable operational resilience over the next several quarters.
Negative Factors
Revenue volatility
Multi‑year swings in revenue and episodic declines reduce visibility and make planning harder. Cyclical demand for domestic appliances can quickly reverse margins and cash flow, increasing execution risk and making growth outcomes less predictable over a 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Sustained net income growth and margin expansion indicate the company has rebuilt earnings power versus prior loss years. Stronger profitability increases internal funding for growth, reduces refinance dependence and supports durable operational resilience over the next several quarters.
Read all positive factors
AO World (AO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£506.79M
Dividend Yield0.02%
Average Volume (3M)682.27K
Price to Earnings (P/E)14.0
Beta (1Y)1.07
Revenue Growth11.35%
EPS Growth247.54%
CountryUK
Employees2,842
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding566,725,650
10 Day Avg. Volume752,309
30 Day Avg. Volume682,269
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.79
Price to Sales (P/S)0.39
P/FCF Ratio5.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£160.00Price Target Upside70.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£1.35B
AO World Business Overview & Revenue Model
Company Description
Operating across the United Kingdom and Europe, AO World plc functions as an online retail giant for a diverse range of domestic appliances and consumer electronics. Its extensive product catalog includes major white goods such as refrigerators, f...
How the Company Makes Money
AO primarily generates revenue by selling products directly to consumers online, with major domestic appliances forming the core of its sales. Revenue is also supported by service and ancillary income linked to those product sales, such as paid-fo...
AO World Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.27B | 1.14B | 1.04B | 1.14B | 1.56B |
| Gross Profit | 316.10M | 276.00M | 243.30M | 238.30M | 269.40M |
| EBITDA | 78.80M | 51.30M | 63.30M | 44.50M | 23.70M |
| Net Income | 35.90M | 10.50M | 24.70M | -2.60M | -30.40M |
Balance Sheet | |||||
| Total Assets | 485.40M | 426.60M | 441.80M | 460.30M | 549.20M |
| Cash, Cash Equivalents and Short-Term Investments | 81.30M | 27.40M | 40.10M | 19.10M | 19.50M |
| Total Debt | 64.80M | 63.30M | 70.90M | 95.30M | 153.60M |
| Total Liabilities | 308.60M | 282.10M | 304.00M | 354.60M | 476.80M |
| Stockholders Equity | 175.50M | 144.50M | 137.80M | 105.70M | 73.40M |
Cash Flow | |||||
| Free Cash Flow | 91.30M | 49.10M | 53.30M | 22.30M | -62.00M |
| Operating Cash Flow | 96.50M | 58.00M | 61.60M | 24.40M | -52.40M |
| Investing Cash Flow | -6.00M | -13.50M | -7.60M | 7.70M | -9.60M |
| Financing Cash Flow | -36.60M | -57.20M | -33.00M | -32.30M | 14.40M |
AO World Technical Analysis
Negative
93.80
Price Trends
94.32
Negative
91.39
Negative
95.31
Negative
Market Momentum
-1.07
Positive
34.03
Neutral
29.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AO, the sentiment is Negative. The current price of 93.8 is below the 20-day moving average (MA) of 93.95, below the 50-day MA of 94.32, and below the 200-day MA of 95.31, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 34.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AO.
AO World Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £506.79M | 14.00 | 21.65% | 0.02% | 11.35% | 247.54% | |
68 Neutral | £1.54B | 9.79 | 7.10% | 1.98% | 6.29% | 55.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £512.10M | -2.16 | -155.17% | ― | -15.00% | 21.71% | |
50 Neutral | £587.05M | -4.82 | 12.75% | ― | -1.91% | ― | |
49 Neutral | £334.29M | -2.80 | 415.28% | ― | 16.03% | 69.50% | |
38 Underperform | £563.27M | -3.67 | -90.46% | 4.62% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
GB:AO
AO World
89.30
6.86
8.32%
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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.