QVC Group (QVCGB) AI Stock Analysis

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QVC Group

(NASDAQ:QVCGB)

46Neutral

QVC Group's overall stock score reflects significant financial distress and operational challenges, with declining revenues and negative equity being key concerns. While technical indicators show some mixed signals, valuation remains unappealing due to negative profitability. Earnings call insights offer some potential growth areas through strategic partnerships, but overall, the company faces substantial risks requiring strategic interventions.

QVC Group (QVCGB) vs. S&P 500 (SPY)

Market Cap

$102.79M

Dividend YieldN/A

Average Volume (3M)34.51K

Price to Earnings (P/E)―

Beta (1Y)-0.69

Revenue Growth-7.66%

EPS Growth-735.19%

CountryUS

Employees18,984

SectorConsumer Cyclical

Sector Strength77

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.25

Shares Outstanding9,114,716

10 Day Avg. Volume51,605

30 Day Avg. Volume34,510

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)-2.16

Price to Sales (P/S)0.00

P/FCF Ratio0.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

QVC Group Business Overview & Revenue Model

Company DescriptionQVC Group Inc. is a media and e-commerce company that owns and operates a portfolio of retail brands, including QVC, HSN, and Zulily. The company specializes in video commerce, leveraging television, digital streaming, and online platforms to engage consumers and drive sales. QVC Group Inc. focuses on interactive shopping experiences, offering a wide range of products across fashion, home, electronics, and beauty categories.

How the Company Makes MoneyQVC Group generates revenue through multiple streams, primarily focusing on direct-to-consumer sales via its television broadcast channels, online e-commerce platforms, and mobile applications. The company leverages its high-quality video content to engage viewers and drive sales, utilizing a blend of live and recorded programming. Key revenue streams include product sales, advertising, and strategic partnerships with various brands and suppliers. QVC's business model capitalizes on its ability to offer unique and exclusive products, fostering customer loyalty and repeat purchases. Additionally, the company benefits from its extensive customer data and analytics, which help tailor marketing strategies and optimize inventory management.

QVC Group Financial Statement Overview

Summary

QVC Group's financial performance is challenged, with declining revenues and persistent losses leading to negative equity. Despite some resilience in cash flow, the high leverage and negative profitability metrics highlight significant risks.

Income Statement

Neutral

QVC Group's income statement shows a challenging financial situation with declining revenues and substantial negative net income over recent years. Gross profit margins have decreased as revenues fell from $14.177 billion in 2020 to $10.037 billion in 2024, indicating operational inefficiencies. The net profit margin has been significantly negative, primarily due to operating losses and high interest expenses. Revenue growth rate has been negative, reflecting a declining trend. The EBIT and EBITDA margins have suffered due to decreasing revenues and increasing costs, signaling poor operational performance.

Balance Sheet

Negative

The balance sheet reveals a concerning financial position with negative stockholders' equity of $971 million as of 2024, indicating insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt of $5.566 billion poses a significant leverage risk. The return on equity is not applicable due to negative equity. The equity ratio is negative, reflecting severe financial distress. The company's liabilities surpass its assets, raising alarms about its financial stability.

Cash Flow

Neutral

Cash flow analysis shows some resilience with a positive operating cash flow of $525 million in 2024, although significantly reduced from previous years. Free cash flow has been positive, but its growth rate has been negative, indicating challenges in sustaining cash generation. The operating cash flow to net income ratio is positive, suggesting some efficiency in converting earnings into cash. However, the free cash flow to net income ratio indicates inconsistency due to fluctuating net income levels.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
10.04B	10.91B	12.11B	14.04B	14.18B
	Gross Profit
3.51B	3.69B	3.69B	4.81B	4.89B
	EBIT
-809.00M	590.00M	1.10B	1.09B	1.57B
	EBITDA
-440.00M	924.00M	-1.37B	1.99B	2.13B
	Net Income Common Stockholders
-1.29B	-145.00M	-2.53B	340.00M	1.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
905.00M	1.12B	1.27B	587.00M	806.00M
	Total Assets
9.24B	11.37B	12.57B	16.25B	17.00B
	Total Debt
5.57B	7.27B	6.87B	6.99B	6.94B
	Net Debt
4.66B	6.13B	5.60B	6.40B	6.13B
	Total Liabilities
10.13B	10.88B	12.05B	13.22B	13.27B
	Stockholders Equity
-971.00M	385.00M	412.00M	2.89B	3.60B
Cash Flow		Free Cash Flow
289.00M	576.00M	-119.00M	794.00M	2.14B
	Operating Cash Flow
525.00M	919.00M	194.00M	1.23B	2.46B
	Investing Cash Flow
-225.00M	-54.00M	601.00M	-501.00M	-161.00M
	Financing Cash Flow
-498.00M	-1.01B	-72.00M	-914.00M	-2.18B

QVC Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.69

Price Trends

50DMA

5.96

Negative

100DMA

4.69

Positive

200DMA

4.15

Positive

Market Momentum

MACD

0.06

Negative

RSI

48.42

Neutral

STOCH

21.27

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGB, the sentiment is Negative. The current price of 5.69 is below the 20-day moving average (MA) of 5.75, below the 50-day MA of 5.96, and above the 200-day MA of 4.15, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QVCGB.

QVC Group Risk Analysis

QVC Group disclosed 38 risk factors in its most recent earnings report. QVC Group 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

QVC Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	74 Outperform	$1.42B	29.51	11.97%	―	9.09%	106.50%
Sector *	61 Neutral	$6.98B	11.29	2.93%	3.90%	2.60%	-21.72%
ETSY	60 Neutral	$4.90B	33.39	-39.97%	―	2.18%	-32.87%
W	50 Neutral	$4.94B	―	17.86%	―	-0.89%	46.62%
LE	49 Neutral	$288.74M	44.41	2.59%	―	-7.44%	―
QVCGB	46 Neutral	$102.79M	―		―	-7.66%	-735.19%
FLWS	44 Neutral	$307.65M	―	-42.08%	―	-8.53%	-2070.29%

* Consumer Cyclical Sector Average

Performance Comparison

QVCGB

QVC Group

5.69

1.54

37.11%

FLWS

1-800-FLOWERS.COM, Inc.

4.75

-5.40

-53.20%

Lands' End

8.90

-5.13

-36.56%

Wayfair

38.75

-28.35

-42.25%

ETSY

Etsy

47.00

-16.97

-26.53%

RVLV

Revolve Group

20.74

-1.26

-5.73%

QVC Group Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -17.66%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Neutral

The earnings call highlights challenges faced by QVC due to macroeconomic factors, declining linear TV viewership, and reduced consumer confidence, leading to declines in revenue and customer count. However, there are positive developments in social and streaming platforms, strategic partnerships, and customer spending, indicating potential growth areas. Despite the challenges, QVC is focused on transforming its business model to adapt to the changing market.

Q1-2025 Updates

Positive Updates

Strategic Partnership with TikTok

QVC signed a strategic agreement with TikTok for the first 24/7 live shopping experience in the U.S., expanding its social shopping reach.

Growth in Social and Streaming Platforms

Streaming monthly active users grew 131%, and combined minutes watched on social and streaming platforms increased by 26%, reaching 1.4 billion minutes.

New Product Launch Success

Successful launches included Geoffrey Zakarian's Wine, which sold out, and continued interest in Floor Care from Dyson.

Improvement in Customer Spending

Existing customers spent an average of $1,635, with top customers purchasing 76 items and spending $3,975 on average, up 1% year-over-year.

Innovative Partnerships

Launched a new experience with American Airlines, allowing customers to watch QVC+ and HSN+ episodes on flights.

Negative Updates

Decline in Total Revenue

Total revenue declined 10% due to pressure from declining linear TV viewership and reduced consumer confidence.

Decreased Customer Count

Total customer count declined 10%, with existing customers down 9%, new customers down 17%, and reactivated customers down 13%.

Challenges in Key Markets

QVC International revenue declined 4% in constant currency, affected by factors like German elections and inflationary pressures in Japan.

Cornerstone Revenue Decline

Cornerstone revenue declined 13%, impacted by continued housing market stagnation.

Adjusted OIBDA Decline

Consolidated adjusted OIBDA declined 31% in constant currency due to continued sales deleverage.

Company Guidance

During the QVC Group's 2025 Q1 earnings call, guidance highlighted several important metrics and strategies aimed at addressing current challenges. Total revenue declined by 10%, attributed to a decrease in linear TV viewership and weakened consumer sentiment. Adjusted OIBDA fell by 31% in constant currency, reflecting sales deleverage. The company announced a reorganization plan, including the closure of the St. Petersburg facility and transitioning operations to West Chester, Pennsylvania by Q3 2025. Customer count decreased by 10%, with new and reactivated customers falling by 17% and 13%, respectively. However, existing customers maintained an average spend of $1,635, purchasing 32 items over 12 months. In the international segment, revenue declined by 4% in constant currency, while Cornerstone experienced a 13% revenue drop due to a sluggish housing market. The company also reported a strategic partnership with TikTok for a 24/7 live shopping experience, aiming to capture revenue growth in social and streaming platforms. Additionally, the company is pursuing $100 million in OIBDA opportunities through cost management and sourcing shifts to mitigate tariff impacts.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.