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AO World
(LSE:AO)
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Rating:67Neutral
Price Target:
99.00 p
▲(5.54% Upside)
Action:Downgraded
Date:09/18/26
The score is driven primarily by improving financial performance—stronger profitability, improved leverage, and robust free cash flow—tempered by a weak-to-neutral technical backdrop and only moderate valuation support (P/E ~14.3 with no dividend yield data).
Positive Factors
Improved Profitability
The sharp improvement in net income and margin indicates that AO is converting a larger share of sales into earnings. If maintained, stronger profitability can support reinvestment, improve resilience, and provide a more durable foundation for growth than the company had in prior loss-making periods.
Negative Factors
Cash-Flow Volatility
Although current cash generation is strong, the history of negative operating and free cash flow shows that performance can weaken materially across the cycle. This variability makes internally generated funding less dependable and could constrain investment or balance-sheet progress during a downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The sharp improvement in net income and margin indicates that AO is converting a larger share of sales into earnings. If maintained, stronger profitability can support reinvestment, improve resilience, and provide a more durable foundation for growth than the company had in prior loss-making periods.
Read all positive factors
AO World (AO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£497.29M
Dividend Yield0.02%
Average Volume (3M)966.27K
Price to Earnings (P/E)14.1
Beta (1Y)1.06
Revenue Growth11.35%
EPS Growth247.54%
CountryUK
Employees2,842
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding562,969,200
10 Day Avg. Volume1,108,882
30 Day Avg. Volume966,267
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
£155.00Price Target Upside65.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£1.34B
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 | 44.40M | 22.90M |
| 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
91.30
Negative
92.32
Negative
92.37
Negative
Market Momentum
0.25
Positive
44.19
Neutral
47.76
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 above the 20-day moving average (MA) of 91.19, above the 50-day MA of 91.30, and above the 200-day MA of 92.37, indicating a bearish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 47.76 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | £497.29M | 14.12 | 21.65% | 0.02% | 11.35% | 247.54% | |
66 Neutral | £1.46B | 9.28 | 7.10% | 2.09% | 6.29% | 55.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | £514.49M | -2.22 | -155.17% | ― | -15.00% | 21.71% | |
51 Neutral | £702.10M | -9.70 | -16.03% | ― | 10.14% | 57.54% | |
49 Neutral | £390.77M | -5.27 | 183.74% | ― | 120.30% | 66.52% | |
45 Neutral | £642.36M | -4.19 | -90.46% | 4.05% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
GB:AO
AO World
90.10
-14.33
-13.72%
GB:ASC
ASOS plc
430.00
175.50
68.96%
GB:SMWH
WH Smith
427.20
-242.86
-36.24%
GB:DEBS
boohoo group Plc
25.50
13.50
112.50%
GB:CURY
Currys plc
143.80
6.24
4.54%
GB:THG
THG
39.18
-7.30
-15.71%
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.