THG (THG) AI Stock Analysis

• Market Cap: £552.49M
• Dividend Yield: N/A
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -20.36%
• EPS Growth: N/A
• Country: UK
• Employees: 6,797
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 1,390,694,700
• 10 Day Avg. Volume: 7,983,748
• 30 Day Avg. Volume: 4,489,601
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £36.33
• Price Target Upside: 1.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: 31.00p ▼(-13.46% Downside)

THG's overall stock score is primarily influenced by its financial challenges, including declining revenues and high leverage. While technical indicators suggest a bearish trend, strategic achievements in the earnings call, such as growth in THG Nutrition and balance sheet improvements, provide some optimism. Valuation remains a concern with negative earnings and no dividend yield.

Positive Factors

THG Nutrition Division Growth

The growth in THG Nutrition indicates strong demand and successful market expansion, which could lead to sustained revenue increases and enhanced brand recognition globally.

Balance Sheet Strengthening

Reducing debt and extending financial facilities improve financial stability and flexibility, allowing THG to invest in growth opportunities and withstand economic fluctuations.

Myprotein Brand Growth and Expansion

The successful rebrand and expansion into major retail channels like Walmart enhance Myprotein's market presence, potentially driving long-term sales growth and brand loyalty.

Negative Factors

Group Revenue Decline

The decline in group revenue reflects challenges in maintaining sales momentum, which may affect profitability and investor confidence if not addressed effectively.

High Input Costs in Nutrition

Rising input costs can erode profit margins, making it crucial for THG to manage costs efficiently to maintain competitiveness and profitability in the Nutrition segment.

Impact of Strategic Changes on Beauty Revenue

Strategic changes leading to revenue decline in the Beauty segment may hinder growth prospects unless offset by new initiatives or market expansions.

THG Business Overview & Revenue Model

Company Description

THG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally. The company operates pure-play sites, such as Lookfantastic, Cult Beauty, and Dermstore that offers approximately 1,300 premium brands across the skincare, haircare, cosmetics, and fragrance categories; Myprotein, a D2C sport nutrition provider that offers products across various categories, including vegan, protein, vitamin, athleisure, and healthy snacks; and THG Ingenuity, an end-to-end platform that powers businesses and brands, which offers hosting, analytics, fraud detection, logistics, and warehousing services, as well as digital brand management, including marketing, translation, and global customer services. It also engages in the online beauty and haircare businesses; and provision of skincare, haircare and cosmetics products. In addition, the company operates THG OnDemand, which offers entertainment products and subscription services for clothing, gadgets, and vinyl; THG Experience that comprises of Three luxury event spaces, including King Street Townhouse Hotel, Great John Street Hotel, and Hale Country Club & Spa; and THG Luxury, which operates various websites that retails fashion and lifestyle brands. Further, it operates hairdressing salons and hotels; offers website development, franchising and consultancy, warehouse and distribution, environmental consulting, translation and interpretation, web hosting, and marketing services; distributes motion pictures; processes films; recovers sorted metals; and produces visual content. The company was formerly known as THG Holdings plc and changed its name to THG Plc in January 2021. THG Plc was founded in 2004 and is based in Manchester, the United Kingdom.

How the Company Makes Money

THG generates revenue through multiple streams, primarily by selling its own branded products directly to consumers via its e-commerce platforms. The THG Beauty division offers a wide array of cosmetics and skincare products, while THG Nutrition focuses on health and wellness supplements. In addition to product sales, THG Ingenuity provides end-to-end e-commerce solutions to third-party brands, enabling them to scale their digital operations through a suite of services including web development, digital marketing, and logistics. This B2B service model is a critical revenue driver, as it allows THG to monetize its technological infrastructure and expertise. Furthermore, strategic acquisitions and partnerships with other companies expand THG's product offerings and market reach, contributing to its overall financial performance.

THG Financial Statement Overview

Summary

THG is facing significant financial challenges with declining revenues, high leverage, and ongoing losses. Despite improvements in cash flow management, the company's ability to achieve sustainable profitability remains uncertain. Continued focus on reducing debt and enhancing operational efficiencies is critical.

Income Statement

THG has faced substantial challenges in maintaining profitability, as reflected by negative net income margins over recent years. The revenue has declined from 2023 to 2024 by 14.3%, and a negative EBIT margin further underscores operational challenges. The company has seen inconsistent gross profit margins, indicating difficulties in cost management. While there are signs of improvement in EBITDA margins compared to 2023, overall performance remains fragile.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.11 in 2024, suggesting significant leverage which may pose risks. The equity ratio has decreased to 12.0%, indicating reduced financial stability. Return on Equity (ROE) remains negative due to persistent net losses. Despite these challenges, the company has managed to reduce net debt, pointing to some improvement in financial management.

Cash Flow

THG's cash flow statement reveals a positive growth trend in free cash flow, improving from a small positive value in 2023 to 28.99 million in 2024. The operating cash flow to net income ratio suggests that cash flows are more stable than net income figures would suggest. However, the free cash flow to net income remains low, indicating potential issues with converting earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	2.05B	2.24B	2.18B	1.61B
Gross Profit	693.60M	840.29M	771.00M	855.37M	655.91M
EBITDA	-48.64M	42.42M	-289.44M	32.07M	-376.33M
Net Income	-326.14M	-248.37M	-539.96M	-138.07M	-532.63M
Balance Sheet
Total Assets	2.55B	2.78B	3.09B	3.42B	2.45B
Cash, Cash Equivalents and Short-Term Investments	309.35M	416.16M	473.78M	536.83M	773.58M
Total Debt	645.94M	995.01M	1.01B	839.04M	762.34M
Total Liabilities	2.24B	1.76B	1.79B	1.67B	1.30B
Stockholders Equity	305.83M	1.02B	1.30B	1.76B	1.14B
Cash Flow
Free Cash Flow	28.99M	16.15M	-164.27M	-190.88M	-198.98M
Operating Cash Flow	60.70M	141.81M	12.15M	-1.71M	40.39M
Investing Cash Flow	-92.11M	-77.14M	-182.11M	-959.06M	-351.32M
Financing Cash Flow	-22.91M	-122.29M	106.92M	724.01M	772.28M

THG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.82 is above the 20-day moving average (MA) of 30.07, above the 50-day MA of 30.98, and above the 200-day MA of 33.59, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 66.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THG.

THG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARD	86 Outperform	384.30M	7.94	13.78%	4.39%	6.19%	-4.44%
AO	59 Neutral	563.80M	54.15	7.27%	―	9.45%	-57.24%
THG	52 Neutral	£552.49M	―	-18.75%	―	-20.36%	―
ASC	46 Neutral	331.79M	-1.13	-64.97%	―	-15.86%	-18.46%
MOON	46 Neutral	689.09M	-71.72	33.36%	0.47%	2.62%	-129.82%
DEBS	38 Underperform	168.14M	-0.50	-8369.23%	―	-45.91%	-120.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

THG Corporate Events

THG PLC Reports Interim Results with Strategic Growth in Beauty and Nutrition

THG PLC reported its interim results for the first half of 2025, showing a return to revenue growth in the second quarter, driven by strategic changes in its beauty and nutrition divisions. The company completed a successful demerger of THG Ingenuity and disposed of Claremont Ingredients, which, along with refinancing, improved its net cash position. Despite a slight decline in overall group revenue, THG anticipates stronger performance in the second half, supported by increased brand partnerships and market share gains, particularly in the UK beauty sector and Myprotein’s expansion in offline retail and licensing.

The most recent analyst rating on (GB:THG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC to Announce Interim Results for H1 2025

THG PLC announced that it will release its interim results for the six months ending 30 June 2025 on 11 September 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (GB:THG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Announces Leadership Appointment at Vistry Group

THG PLC has announced that Sue Farr, currently serving as the Senior Independent Director, will be joining Vistry Group PLC as a non-executive director starting from October 1, 2025. This move signifies a strategic alignment and potential collaboration between the two companies, which could influence THG’s market positioning and stakeholder relations.

The most recent analyst rating on (GB:THG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Divests Claremont Ingredients for £103 Million

THG PLC has announced the sale of Claremont Ingredients, a UK-based flavour manufacturing and development laboratory, to Nactarome Group for approximately £103 million. This move aligns with THG’s strategy to simplify its operations and achieve a net cash balance sheet. The sale represents a significant return on investment, as Claremont was originally acquired for £52 million in 2020. Financially, the disposal will aid in reducing THG’s net leverage and borrowing costs. Operationally, the relationship with Claremont will continue through a long-term supply contract, ensuring Myprotein’s flavour capabilities remain robust. The transaction is expected to impact THG’s EBITDA in the coming years, but the company anticipates double-digit revenue growth for THG Nutrition in the second half of 2025, driven by stable whey prices and strategic pricing approaches to enhance market share.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Sells Claremont Ingredients to Nactarome Group for £103 Million

THG PLC has announced the sale of Claremont Ingredients, a UK-based flavour manufacturing and development laboratory, to Nactarome Group for approximately £103 million. This divestment aligns with THG’s strategy to simplify its operations and achieve a net cash balance sheet. The sale represents a significant return on investment, as Claremont was acquired for £52 million in 2020. Financially, the disposal will help reduce THG’s net leverage and borrowing costs, although it is expected to decrease the Group’s EBITDA for FY 2025 and FY 2026 by £5 million and £10 million, respectively. The strategic move is part of THG’s broader plan to focus on core strengths and market share growth, particularly for its Myprotein brand, which is expected to see double-digit revenue growth in the second half of 2025.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.

THG PLC Announces Changes to Board Committee Roles

THG PLC has announced changes to its Board Committee memberships. Milyae Park, an independent Non-Executive Director, has been appointed to the Audit and Risk Committees and the Sustainability Committee. Additionally, Helen Jones, another independent Non-Executive Director, will now serve as the designated Non-Executive Director for workforce engagement. These changes are expected to enhance the company’s governance and engagement with its workforce, potentially impacting its operational efficiency and stakeholder relations.

The most recent analyst rating on (GB:THG) stock is a Sell with a £0.49 price target. To see the full list of analyst forecasts on THG stock, see the GB:THG Stock Forecast page.