# AO World plc (AO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Internet & Direct Marketing Retail. Price 92p, market value 511 millionp.

## Valuation
- **P/E (trailing): 15.3×** (5-yr avg 3093.3×, 3-yr avg 3093.3×). AO World plc trades at 15.3× trailing earnings, well below its own five-year average of 3093.3×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 11.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.05**. A PEG of 0.05 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.9×**. The shares trade at 2.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.7×**. Enterprise value is 3.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 27.3%** (5-yr avg 0.1%). Free cash flow equals 27.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.5%**. The inverse of the P/E: 6.5% of the price is earned each year.

## Profitability
- **Gross margin: 24.6%**. AO World plc keeps 24.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.7%**. 4.7% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.8%**. 2.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.5%**. 20.5% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 45.2%**. Return on all capital, debt included, is 45.2%: comfortably above what that capital costs.
- **Return on assets: 9.6%**. Each dollar of assets produces 9.6% of profit.

## Growth
- **Revenue growth (1 yr): 11.3%** (3-yr 3.6%/yr, 5-yr -5.3%/yr). Revenue grew 11.3% over the last year, against -5.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 245.2%** (5-yr 10.7%/yr). Earnings per share rose 245.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 60.0%/yr**. Free cash flow has compounded at 60.0% a year over three years.

## Financial health
- **Debt to equity: 0.37**. Debt is 0.37 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. AO World plc holds more cash than debt.
- **Interest coverage: 10.4×**. Operating profit covers interest 10.4× over, a safe margin.
- **Current ratio: 1.09** (quick 0.75). Current assets cover the next year's liabilities 1.09 times.
- **Altman Z-score: 4.51**. A Z-score of 4.51 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. AO World plc does not currently pay a dividend, but it returned 4.6% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): 9.0%** (YTD -16.5%, 3-mo 3.8%). The shares are up 9.0% over twelve months including dividends.
- **From 52-week high: -21.7%** (11.4% above the low). Trading 22% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.80** (volatility 31%). Beta of 0.80 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AO.L · Page: https://foliofundamentals.com/stocks/ao.l

Not investment advice.