The Hut Group or THG, to invest or not?
The Hut Group (THG) are the owners of the UK’s largest online network of health and beauty brands, with a total valuation of £1.5 billion. The company has an average monthly revenue of £5 million and is free float at £15.35 per share. Will the THG share price be worth an investment or not? That’s the question we’ll try answering in this article.
The group have over 690 employees and have achieved over £117 million in sales in the last 12 months alone. They have achieved a profit before tax margin of 19% on sales, which makes them appear fairly valued given the growing e-commerce landscape, especially in light of the recent falling oil prices.
At the time this article is written, THG share price closed at 60.34 which is a 3.41% increase compared to its closing price the previous day. In the past 2 years, THG reached its peak price at 704 in April 2021. Its lowest then fell to 32.33 in October of 2022. The previous year has continued to a plummeting trend however, these past few months, they have been slowly rising in the chart again.
The decrease in share price of the company might be a result of the pandemic which has affected a big chunk of businesses in the world. Thankfully, it has been getting better and businesses along with their stock prices has slowly began to rise up again. Through this, try to decided whether this company is worth investing or not.
Who is The Hut Group or THG?
The Hut Group (THG) is a British e-commerce company founded in 2004 by entrepreneur Matthew Moulding. It operates a variety of online retail brands across health and beauty, fashion, and lifestyle categories. THG has its headquarters in Manchester, UK, and also has offices and operations in the US, Europe, Asia, and Australia.
The company’s primary website, TheHut.com, offers a range of beauty, fashion, and homeware products. In addition to TheHut.com, THG owns and operates several other online retail sites, including Lookfantastic, Myprotein, and Zavvi. It also owns and operates a range of beauty brands, including ESPA, Mio Skincare, and Mama Mio.
In recent years, THG has also expanded into technology and logistics, developing its own e-commerce platform and fulfillment network. The company went public in September 2020, listing on the London Stock Exchange with a market capitalization of £5.4 billion.
THG’s Main Competitors
THG operates in several different sectors, including health and beauty, fashion, and lifestyle, so its competitors vary depending on the sector. Here are some of THG’s main competitors in each sector:
- Health and Beauty: Some of THG’s main competitors in the health and beauty sector include:
- Ulta Beauty
- Lookfantastic (owned by THG)
- Cult Beauty
- Fashion: THG’s main competitors in the fashion sector include:
- Lifestyle: THG’s main competitors in the lifestyle sector include:
Overall, THG faces significant competition from established players in each of the sectors it operates in. However, the company’s strong brand portfolio, e-commerce platform, and logistics capabilities have allowed it to establish a strong position in the online retail market.
Investors can buy and sell shares of The Hut Group (THG) on the London Stock Exchange (LSE). Here are the steps to invest in THG shares:
- Open a brokerage account: Investors need to open a brokerage account with a reputable broker that provides access to the LSE. Popular options include Hargreaves Lansdown, AJ Bell, and Interactive Investor.
- Fund your account: Once you have opened a brokerage account, you need to deposit funds into it. Most brokers allow investors to fund their accounts using a bank transfer, debit card, or credit card.
- Search for THG: In your brokerage account, search for THG’s ticker symbol “THG” to find the stock.
- Buy THG shares: After locating THG’s stock, you can place a buy order through your broker. The order will be executed at the prevailing market price.
- Monitor your investment: Keep track of your investment in THG by monitoring the stock price and any relevant news or updates about the company.
It’s important to note that investing in stocks carries risks, and investors should carefully consider their investment objectives, risk tolerance, and financial situation before investing in THG or any other stock. It’s always a good idea to do thorough research and seek professional advice before making any investment decisions.