# Ao World (AO.LSE)

Canonical: https://gigainvestors.com/s/AO.LSE

Analysis as of: 2026-10-16T07:45:38.888Z. Financial observations: FY2011–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 92.00 per share; close as of 2026-10-15.

Estimated value: low GBX 46.16 per share, central GBX 51.13 per share, high GBX 57.74 per share. Buy at or below the central value GBX 51.13 per share. Valuation as of 2026-10-16T07:45:38.888Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 5

- Operating margin variation: 5.13×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.02×

- FY2018: -0.02×

- FY2019: -0.02×

- FY2020: -0.00×

- FY2021: 0.02×

- FY2022: -0.02×

- FY2023: 0.01×

- FY2024: 0.03×

- FY2025: 0.02×

- FY2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.3%

- ROIC, second-lowest year: -43.5%

- Typical minus recent gross margin: -6.2 pp

- Typical gross margin (annual median): 18.1%

- Recent gross margin (lower of latest and 3-year median): 24.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.6%

- ROIC including acquisitions, ten-year median: 1.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -56.8%

- FY2018: -43.5%

- FY2019: -17.4%

- FY2020: -2.3%

- FY2021: 25.7%

- FY2022: -14.2%

- FY2023: 6.8%

- FY2024: 18.6%

- FY2025: 8.9%

- FY2026: 26.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.70×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 65M

- Net income, five-year total: GBP 38M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.2 pp

- Working capital / revenue, final three-year average: -2.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.09×

- FY2023: -2.78×

- FY2024: 1.09×

- FY2025: 1.56×

- FY2026: 1.32×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -43.5% vs 18.6%

- Per-share earnings: -0.01 to 0.04 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.9%

- Ordinary dilution, 5-year annual growth: 3.2%

- Market cap gain: GBP -134M

- Cumulative retained earnings: GBP 79M

- Diluted shares, 10-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: 3.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: GBP 0.06

- Per-share value, starting three-year median: GBP -0.01

- Per-share value, ending three-year median: GBP 0.04

- Average buyback yield: 2.9%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 31M

- Cumulative net income, 10 years: GBP 20M

- ROIC, first three-year median: -43.5%

- ROIC, last three-year median: 18.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP -0.01

- FY2018: GBP -0.03

- FY2019: GBP -0.04

- FY2020: GBP 0.00

- FY2021: GBP 0.04

- FY2022: GBP -0.05

- FY2023: GBP -0.00

- FY2024: GBP 0.04

- FY2025: GBP 0.02

- FY2026: GBP 0.06

### accounting: pass

- Sloan accruals: -12.5%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.0%

- FY2018: 0.8%

- FY2019: 4.5%

- FY2020: -2.8%

- FY2021: -15.7%

- FY2022: 4.0%

- FY2023: -5.9%

- FY2024: -8.4%

- FY2025: -11.1%

- FY2026: -12.5%

## Holders

## Price story

Down 37% since Oct 2021 · "AO World lifts profit guidance as revenue and earnings rise" (finance.yahoo.com, Nov 2025) · sales +11.3%

Story as of 2026-10-16T10:00:13.460Z; price observation 2026-10-15.

Price needs cash profits to grow 9.6% a year for ten years

- 2025-11-26: AO World lifts profit guidance as revenue and earnings rise ([finance.yahoo.com](https://finance.yahoo.com/news/ao-world-lifts-profit-guidance-102515508.html))

### Sales · FY2025–2026

sales +11.3%; source https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html; observed 2026-06-30.

- FY2017: GBP 701M 

- FY2018: GBP 797M 

- FY2019: GBP 903M 

- FY2020: GBP 1.0B 

- FY2021: GBP 1.7B 

- FY2022: GBP 1.6B 

- FY2023: GBP 1.1B 

- FY2024: GBP 1.0B 

- FY2025: GBP 1.1B 

- FY2026: GBP 1.3B 

### Gross margin · FY2026

gross margin 25%; source https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html; observed 2026-06-30.

- FY2017: 18.4% 

- FY2018: 17.8% 

- FY2019: 16.9% 

- FY2020: 17.0% 

- FY2021: 17.6% 

- FY2022: 17.3% 

- FY2023: 20.9% 

- FY2024: 23.4% 

- FY2025: 24.3% 

- FY2026: 25.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are GBP 1.3 billion.

- Source: https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html (filed 2026-06-30); FY2026: revenue 1266600000; grossProfit 316100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AO.LSE: AO World plc, together with its subsidiaries, engages in the online retailing of domestic appliances and ancillary services in the United Kingdom and Germany. It retails fridges and freezers, laundry products, and dishwashers, as well as smart tech, computing, AV, consumer electronics, gaming and smart home products, and TV and entertainment products through its e-commerce platforms. The company also engages in the production of content, including imagery, videos, how-to guides and lifestyle contents, and energy efficiency ratings; and operation of waste electrical and electronic equipment (WEEE) and plastics recycling facilities, as well as distribution centers. In addition, the company offers musicMagpie, a reverse supply chain platform that provides customers options to train in tech and to buy second-life products. Further, it provides logistics and transport services. The company sells its products through its website, marketplaces, and third-party websites. AO World plc was founded in 2000 and is headquartered in Bolton, the United Kingdom.

### Why customers stay

Margins ranged from 23.4% to 25% during 2024–26; it earns 2.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2024: grossProfit / revenue = 23.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2025: grossProfit / revenue = 24.3%.

- Source: https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html (filed 2026-06-30); FY2026: grossProfit / revenue = 25%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); 10-year return on capital observations [[2017,-0.5676646706586826],[2018,-0.4353061224489796],[2019,-0.17428156748911466],[2020,-0.02339489885664028],[2021,0.25733960294698865],[2022,-0.14231455660903514],[2023,0.06848611444029723],[2024,0.18567109383435915],[2025,0.08859819121447028],[2026,0.26305632810472057]]; median 0.022545607791828473. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back GBP 14.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2021: growth capex 0; upkeep 9100000; owner earnings 14140000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2023: growth capex 0; upkeep 2100000; owner earnings 7240000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2024: growth capex 0; upkeep 8300000; owner earnings 26940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); FY2025: growth capex 0; upkeep 8900000; owner earnings 16420000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html (filed 2026-06-30); FY2026: growth capex 0; upkeep 5200000; owner earnings 47480000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html (filed 2026-06-30); FY2026: cash repurchases 14300000 GBP.

### Are managers owners

Insiders own 46.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AO.LSE SharesStats.PercentInsiders = 46.83 percentage points; cache date 2026-10-16.

### What could break it

Related risks (including medium-term carbon pricing) are summarised on page 35.

- Source: https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html (filed 2026-06-30); FY23 (UK-only Group) is our baseline, calculated with specialist third-party support (Green Jam). FY26 Scope 1, 2 and 3 results are set out on page 33; related risks (including medium-term carbon pricing) are summarised on page 35. Targets and performance against targets We support the UK net zero by 2050 ambition and intend to set interim science-based targets for Scope 1 and 2 once we have greater certainty on eet decarbonisation technology/infrastructure and longer-term energy and legislative requirements.

### What the price says

The price assumes cash profits grow 9.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-30); Ten-year compound average after fade. Initial solved rate 0.12488753519907039. Price 92; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.01425000106875008 → FY2026 0.08477118208307147. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 157.60 per share

- 2016-11: GBX 171.00 per share

- 2016-12: GBX 181.40 per share

- 2017-01: GBX 159.90 per share

- 2017-02: GBX 147.50 per share

- 2017-03: GBX 135.00 per share

- 2017-04: GBX 135.00 per share

- 2017-05: GBX 144.00 per share

- 2017-06: GBX 116.25 per share

- 2017-07: GBX 117.75 per share

- 2017-08: GBX 115.50 per share

- 2017-09: GBX 111.50 per share

- 2017-10: GBX 110.00 per share

- 2017-11: GBX 130.00 per share

- 2017-12: GBX 110.00 per share

- 2018-01: GBX 141.00 per share

- 2018-02: GBX 138.80 per share

- 2018-03: GBX 115.60 per share

- 2018-04: GBX 156.00 per share

- 2018-05: GBX 169.20 per share

- 2018-06: GBX 149.60 per share

- 2018-07: GBX 142.40 per share

- 2018-08: GBX 143.20 per share

- 2018-09: GBX 140.00 per share

- 2018-10: GBX 133.40 per share

- 2018-11: GBX 122.40 per share

- 2018-12: GBX 128.40 per share

- 2019-01: GBX 119.00 per share

- 2019-02: GBX 100.80 per share

- 2019-03: GBX 98.40 per share

- 2019-04: GBX 108.00 per share

- 2019-05: GBX 111.40 per share

- 2019-06: GBX 72.80 per share

- 2019-07: GBX 73.10 per share

- 2019-08: GBX 69.50 per share

- 2019-09: GBX 69.50 per share

- 2019-10: GBX 63.00 per share

- 2019-11: GBX 85.00 per share

- 2019-12: GBX 90.30 per share

- 2020-01: GBX 77.00 per share

- 2020-02: GBX 61.50 per share

- 2020-03: GBX 67.50 per share

- 2020-04: GBX 57.20 per share

- 2020-05: GBX 136.60 per share

- 2020-06: GBX 144.00 per share

- 2020-07: GBX 167.40 per share

- 2020-08: GBX 201.50 per share

- 2020-09: GBX 216.00 per share

- 2020-10: GBX 360.50 per share

- 2020-11: GBX 348.50 per share

- 2020-12: GBX 411.00 per share

- 2021-01: GBX 312.00 per share

- 2021-02: GBX 284.00 per share

- 2021-03: GBX 294.50 per share

- 2021-04: GBX 278.00 per share

- 2021-05: GBX 260.00 per share

- 2021-06: GBX 253.00 per share

- 2021-07: GBX 225.20 per share

- 2021-08: GBX 231.20 per share

- 2021-09: GBX 217.40 per share

- 2021-10: GBX 146.30 per share

- 2021-11: GBX 94.70 per share

- 2021-12: GBX 110.50 per share

- 2022-01: GBX 100.60 per share

- 2022-02: GBX 95.45 per share

- 2022-03: GBX 87.35 per share

- 2022-04: GBX 76.00 per share

- 2022-05: GBX 78.80 per share

- 2022-06: GBX 69.00 per share

- 2022-07: GBX 43.42 per share

- 2022-08: GBX 45.16 per share

- 2022-09: GBX 43.14 per share

- 2022-10: GBX 44.70 per share

- 2022-11: GBX 59.50 per share

- 2022-12: GBX 52.00 per share

- 2023-01: GBX 62.90 per share

- 2023-02: GBX 70.40 per share

- 2023-03: GBX 64.50 per share

- 2023-04: GBX 77.65 per share

- 2023-05: GBX 64.75 per share

- 2023-06: GBX 79.30 per share

- 2023-07: GBX 95.50 per share

- 2023-08: GBX 93.35 per share

- 2023-09: GBX 85.40 per share

- 2023-10: GBX 83.55 per share

- 2023-11: GBX 90.00 per share

- 2023-12: GBX 98.35 per share

- 2024-01: GBX 91.05 per share

- 2024-02: GBX 92.85 per share

- 2024-03: GBX 100.80 per share

- 2024-04: GBX 106.00 per share

- 2024-05: GBX 112.40 per share

- 2024-06: GBX 111.00 per share

- 2024-07: GBX 117.20 per share

- 2024-08: GBX 114.00 per share

- 2024-09: GBX 112.40 per share

- 2024-10: GBX 108.60 per share

- 2024-11: GBX 106.80 per share

- 2024-12: GBX 103.40 per share

- 2025-01: GBX 98.30 per share

- 2025-02: GBX 96.80 per share

- 2025-03: GBX 96.00 per share

- 2025-04: GBX 98.30 per share

- 2025-05: GBX 101.20 per share

- 2025-06: GBX 96.80 per share

- 2025-07: GBX 93.10 per share

- 2025-08: GBX 86.30 per share

- 2025-09: GBX 103.80 per share

- 2025-10: GBX 106.40 per share

- 2025-11: GBX 109.80 per share

- 2025-12: GBX 113.20 per share

- 2026-01: GBX 108.60 per share

- 2026-02: GBX 98.70 per share

- 2026-03: GBX 86.60 per share

- 2026-04: GBX 87.90 per share

- 2026-05: GBX 93.60 per share

- 2026-06: GBX 91.50 per share

- 2026-07: GBX 97.30 per share

- 2026-08: GBX 94.80 per share

- 2026-09: GBX 89.50 per share

- 2026-10: GBX 92.00 per share

## Annual estimated value (GBX per share)

- FY2024: low GBX 15.31 per share, central GBX 16.97 per share, high GBX 19.19 per share

- FY2025: low GBX 18.66 per share, central GBX 21.13 per share, high GBX 24.41 per share

- FY2026: low GBX 45.67 per share, central GBX 50.59 per share, high GBX 57.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:51:35.318Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138005FFOAJIUZY4375/2026-03-31/ESEF/GB/0/2138005FFOAJIUZY4375-2026-03-31-1/reports/2138005FFOAJIUZY4375-2026-03-31-1-T01.html); period 2026-03-31, filed 2026-06-30.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.