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THG
(LSE:THG)
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Rating:51Neutral
Price Target:
41.00 p
▲(16.94% Upside)
Action:Reiterated
Date:10/17/26
The score is held back primarily by weak financial quality—especially negative operating/free cash flow and still-elevated leverage—despite improving headline profitability. Technicals are supportive with a clear uptrend, but overbought signals raise near-term volatility risk. Earnings-call guidance and sentiment are constructive (positive FCF outlook and accelerating growth expectations), while valuation support is limited due to a negative P/E and no dividend yield provided.
Positive Factors
Revenue and EBITDA Recovery
The combination of renewed revenue growth and sharply higher EBITDA indicates improving operating traction across the group. If sustained, stronger earnings can support reinvestment, reduce leverage, and provide a more durable foundation for THG’s beauty and nutrition businesses.
Negative Factors
Weak Cash Conversion
Negative operating and free cash flow means recent accounting profitability has not yet translated consistently into internally generated funds. Unless cash conversion improves, THG may have less flexibility to invest, reduce debt, or absorb pressure in trading and working capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and EBITDA Recovery
The combination of renewed revenue growth and sharply higher EBITDA indicates improving operating traction across the group. If sustained, stronger earnings can support reinvestment, reduce leverage, and provide a more durable foundation for THG’s beauty and nutrition businesses.
Read all positive factors
THG (THG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£722.53M
Dividend YieldN/A
Average Volume (3M)6.38M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth10.14%
EPS Growth57.54%
CountryUK
Employees2,670
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.04
Shares Outstanding1,640,392,700
10 Day Avg. Volume9,174,867
30 Day Avg. Volume6,380,552
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.49
Price to Sales (P/S)0.37
P/FCF Ratio-45.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£54.50Price Target Upside55.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£1.80B
THG Business Overview & Revenue Model
Company Description
THG Plc operates as an online retailer in the United Kingdom, the United States, Europe, and internationally. It operates through the THG Beauty and THG Nutrition segments. The THG Beauty segment manufactures and retails skincare, haircare, cosmet...
How the Company Makes Money
THG primarily makes money through (1) direct-to-consumer product sales and (2) fees for e-commerce technology and services. In its consumer businesses, revenue is generated when customers purchase THG-owned and third-party products through its web...
THG Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 15, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Highlights significantly outweighed the lowlights, with 7.2% revenue growth, adjusted EBITDA of £42.8 million, improved free cash flow, strong Myprotein volume growth, Beauty market-share gains, and a constructive outlook. The main challenges were whey-cost inflation, the delayed VAT claim update, U.S. manufacturing dispatch delays and some trading softness related to EU duties and sales phasing.Positive Updates
Strong First-Half Revenue and Profitability Growth
Group revenue increased by 7.2% to £829 million in H1 26. Adjusted EBITDA reached £42.8 million, more than double the prior year when adjusting for the disposal of Claremont Ingredients.
Negative Updates
Significant Whey Protein Cost Inflation
Since 2021, whey protein costs have increased approximately 5-fold. Management said this creates pressure for both consumers and industry margins, although it also reported solid margin progression during H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First-Half Revenue and Profitability Growth
Group revenue increased by 7.2% to £829 million in H1 26. Adjusted EBITDA reached £42.8 million, more than double the prior year when adjusting for the disposal of Claremont Ingredients.
Read all positive updates
Company Guidance
For the full year, THG expects 25% to 35% of positive free cash flow, with £25 million to £35 million of positive free cash flow, while continuing to grow market share and progress margins; for Q3, it expects constant currency sales growth of approximately 2% with earnings and cash remaining robust, after approximately 5% revenue growth achieved in July and August, and for Q4, it expects revenue growth to accelerate to approximately 6% to 7%. Myprotein remains on track to sell approximately 130 million branded units for the full year of 2026, following 58.5 million units sold in H1, and the group expects to sell over 250 thousand advent calendar units this year. The combination of EBITDA growth and improving cash flow through 2026 and 2027, together with the conclusion and receipt of the HMRC VAT claim, should see group net debt reduced to approximately 1x leverage for full year 2027; if any meaningful transaction materialise over the year ahead, the group would move into a net cash positive position by the end of full year 2027. THG remains confident in baseline divisional EBITDA margins of more than 6% for THG Beauty and more than 12% for THG Nutrition, with increasing confidence in the trajectory towards its targeted 12% EBITDA margin.THG Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
43
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.72B | 1.75B | 2.05B | 2.24B | 2.18B |
| Gross Profit | 651.44M | 630.76M | 693.60M | 840.29M | 771.00M | 855.37M |
| EBITDA | 67.95M | 54.87M | -48.64M | 42.42M | -289.44M | 32.07M |
| Net Income | -65.83M | 54.13M | -326.14M | -248.37M | -539.96M | -138.07M |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.60B | 2.55B | 2.78B | 3.09B | 3.42B |
| Cash, Cash Equivalents and Short-Term Investments | 88.69M | 183.10M | 309.35M | 416.16M | 473.78M | 536.83M |
| Total Debt | 575.84M | 561.17M | 645.94M | 995.01M | 1.01B | 839.04M |
| Total Liabilities | 1.11B | 1.17B | 2.24B | 1.76B | 1.79B | 1.67B |
| Stockholders Equity | 395.83M | 425.22M | 305.83M | 1.02B | 1.30B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | -8.26M | -14.09M | 28.99M | 16.15M | -164.27M | -190.88M |
| Operating Cash Flow | -4.09M | -10.06M | 96.46M | 141.81M | 12.15M | -1.71M |
| Investing Cash Flow | 13.05M | 33.52M | -92.11M | -77.14M | -182.11M | -959.06M |
| Financing Cash Flow | -49.67M | -148.98M | -22.91M | -122.29M | 106.92M | 724.01M |
THG Technical Analysis
Positive
35.06
Price Trends
30.77
Positive
30.99
Positive
32.63
Positive
Market Momentum
2.97
Negative
82.35
Negative
94.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THG, the sentiment is Positive. The current price of 35.06 is above the 20-day moving average (MA) of 30.96, above the 50-day MA of 30.77, and above the 200-day MA of 32.63, indicating a bullish trend. The MACD of 2.97 indicates Negative momentum. The RSI at 82.35 is Negative, neither overbought nor oversold. The STOCH value of 94.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THG.
THG Risk Analysis
THG disclosed 12 risk factors in its most recent earnings report. THG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
THG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £3.86B | 10.52 | 15.67% | 4.55% | 8.13% | 28.46% | |
66 Neutral | £1.48B | 9.39 | 7.10% | 2.06% | 6.29% | 55.06% | |
66 Neutral | £4.33B | 8.04 | 18.67% | 1.38% | 2.06% | 14.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | £532.44M | -2.29 | -155.17% | ― | -15.00% | 21.71% | |
51 Neutral | £722.53M | -9.98 | -16.03% | ― | 10.14% | 57.54% | |
49 Neutral | £398.44M | -5.37 | 183.74% | ― | 120.30% | 66.52% |
* Consumer Cyclical Sector Average
GB:THG
THG
40.32
-6.34
-13.59%
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THG Corporate Events
Business Operations and StrategyFinancial Disclosures
THG lifts profit outlook as Nutrition surges and cash flow turns positive
Positive
Oct 15, 2026
THG PLC reported continued momentum in the third quarter of 2026, upgrading full-year adjusted EBITDA expectations to £103m, above market consensus, as Nutrition outperformed and group profitability strengthened. Last-twelve-month adjusted EB...
Business Operations and StrategyFinancial Disclosures
THG lifts profit and cash flow as Myprotein and beauty platforms power H1 growth
Positive
Sep 10, 2026
THG reported interim results for the half-year to 30 June 2026 showing group revenue of £828.7m, up 7.2% year on year and ahead of guidance, with adjusted EBITDA more than doubling to £42.8m and free cash flow at its strongest first-half...
Business Operations and StrategyFinancial Disclosures
THG to Unveil Half‑Year 2026 Results and Brief Investors
Neutral
Sep 9, 2026
THG PLC will publish interim results for the six months to 30 June 2026 on 10 September, offering investors a mid‑year update on trading across its beauty and nutrition businesses. Management will host a conference call for analysts and inve...
Business Operations and StrategyRegulatory Filings and Compliance
THG Capital Reduction Becomes Effective After Court Approval
Neutral
Aug 7, 2026
THG PLC has confirmed that a court-approved reduction of its share premium account and capital redemption reserve has now become effective following registration by the Registrar of Companies. The move, sanctioned by the High Court of Justice in E...
Business Operations and StrategyShareholder Meetings
THG Wins Court Approval for Capital Reduction Plan
Positive
Jul 28, 2026
THG PLC has secured High Court approval for the cancellation of its share premium account and capital redemption reserve, a capital reduction that was previously endorsed by shareholders at the company’s June annual general meeting. The redu...
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.