| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.00 | 663 |
| Intrinsic value (DCF) | 3.08 | -24 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.87 | -79 |
Revolution Beauty Group plc (LSE: REVB.L) is a fast-growing UK-based beauty and personal care company specializing in affordable, high-quality makeup, skincare, and haircare products. Founded in 2014 and headquartered in Queenborough, the company has rapidly expanded its retail footprint to approximately 15,000 doors globally, including major retail chains in the UK, US, and other international markets. Revolution Beauty operates through a hybrid business model, leveraging both e-commerce and wholesale partnerships with physical and digital retailers. The company’s product portfolio caters to a diverse, trend-conscious consumer base, emphasizing inclusivity and innovation. As part of the Consumer Defensive sector, Revolution Beauty benefits from steady demand in the beauty industry, though it faces intense competition from both mass-market and premium brands. Its agile supply chain and digital-first approach position it well in the evolving beauty landscape.
Revolution Beauty presents a high-risk, high-reward investment opportunity. With a market cap of £23.6 million and a beta of 1.168, the stock exhibits volatility but offers growth potential in the competitive beauty sector. The company reported £191.3 million in revenue and £10.7 million in net income for FY 2024, signaling improving profitability. However, its £36.2 million in total debt and modest operating cash flow (£6.5 million) raise liquidity concerns. The lack of dividends suggests a focus on reinvestment for expansion. Investors should weigh its strong retail penetration and digital strategy against operational risks and sector competition.
Revolution Beauty competes in the crowded mass-market beauty segment, differentiating itself through affordability, trend-driven product launches, and a strong digital presence. Its direct-to-consumer (DTC) e-commerce platform complements wholesale partnerships, providing diversified revenue streams. However, the company lacks the brand prestige of premium competitors and faces pricing pressure from private-label alternatives. Its UK base offers logistical advantages in Europe but limits scale compared to global giants. Supply chain agility and influencer collaborations are key strengths, but reliance on third-party retailers introduces margin pressures. The company’s recent profitability turnaround is promising, but sustaining growth requires continued innovation and international expansion.