THG Plc (THG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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THG Plc

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CMO Group PLC

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Itsarm Plc

Why is THG Plc ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.28

Poor long term growth as Operating profit has grown by an annual rate 19.26% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.28
The company has reported losses. Due to this company has reported negative ROE

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 111.28 %
INTEREST COVERAGE RATIO(Q) Lowest at 53.35
CASH AND EQV(HY) Lowest at GBP 129.41 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -23.10%, its profits have risen by 81.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.10% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is THG Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

THG Plc

-100.0%

-1.09

53.58%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.15%

EBIT Growth (5y)

19.26%

EBIT to Interest (avg)

-2.28

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

1.19

Tax Ratio

10.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.21

EV to EBIT

133.46

EV to EBITDA

5.59

EV to Capital Employed

1.12

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

0.84%

ROE (Latest)

-10.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(HY)

Higher at GBP -61.41 MM

ROCE(HY)

Highest at -18.75%

RAW MATERIAL COST(Y)

Fallen by -2.2% (YoY

EPS(Q)

Highest at GBP 0.05

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 111.28 %

INTEREST COVERAGE RATIO(Q)

Lowest at 53.35

CASH AND EQV(HY)

Lowest at GBP 129.41 MM

NET SALES(Q)

Lowest at GBP 783.42 MM

OPERATING PROFIT(Q)

Lowest at GBP 21.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.69 %

Here's what is working for THG Plc

Net Profit

Higher at GBP -61.41 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (GBP MM)

EPS

Highest at GBP 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost

Fallen by -2.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for THG Plc

Interest Coverage Ratio

Lowest at 53.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 111.28 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at GBP 783.42 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Sales

Fallen at -16.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 21.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 2.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at GBP 129.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents