Soho House Outlook: Weak Technicals and Mixed Analyst Sentiment

Market Snapshot

Takeaway: Soho House (SHCO.N) is in a weak technical state with bearish signals dominating, while fundamentals show mixed signals. Current price is down -9.49%.

News Highlights

• May 31, 2025: Trump’s fast-tracked uranium mine in Utah hints at a possible revival for the uranium sector, though prices remain a key factor. Implication: A broader commodities shift could affect investor sentiment toward SHCO.N if energy markets heat up.
• May 31, 2025: Several travel and hospitality firms in India are preparing for IPOs, including Oyo and Pride Hotels Group. Implication: This sector could attract renewed investor interest in hospitality stocks globally, though Soho House faces mixed signals from fundamentals and technicals.
• May 21, 2025: Target Hospitality secures a $4 billion U.S. government contract, signaling long-term growth potential in the sector. Implication: Positive for the broader hospitality industry but unlikely to offset SHCO.N’s current technical weakness.

Analyst Views & Fundamentals

Average Rating Score: 5.00 (simple mean of analyst ratings). Weighted Rating Score: 0.00 (based on historical performance). Analysts are divided, with only one active analyst — George Kelly of Roth MKM — recommending a “Strong Buy,” but his historical accuracy is poor.

Price Trend: The stock has declined by 9.49% recently, and the “Strong Buy” recommendation from one analyst contrasts sharply with the weak fundamentals and bearish technicals.

Key Fundamental Factors:

• Net Cash Flow from Operating Activities per Share (YoY growth rate %): 0.23% (Internal diagnostic score: 2.00)
• Revenue-MV: 1.95% (Internal diagnostic score: 4.00)
• Profit-MV: 2.17% (Internal diagnostic score: 2.00)
• PB-ROE: 3.63% (Internal diagnostic score: 2.00)
• Total Profit (YoY growth rate %): 20.60% (Internal diagnostic score: 5.00)
• Net Cash Flow from Operating Activities (YoY growth rate %): 2.11% (Internal diagnostic score: 3.00)
• Long-Term Debt to Working Capital Ratio (%): 1.01% (Internal diagnostic score: 4.00)
• Cash-UP: 1.42% (Internal diagnostic score: 4.00)
• Diluted Earnings per Share (YoY growth rate %): 2.08% (Internal diagnostic score: 3.00)
• Asset-MV: 2.63% (Internal diagnostic score: 1.00)

The fundamental score of 5.14 suggests moderate performance, but the disparity between positive growth metrics and poor debt ratios means investors should scrutinize both sides.

Money-Flow Trends

Big-money flows (block and large investors) are trending negatively, with a 49.37% inflow ratio for block trades and a 51.84% inflow for large investors. This suggests large players are taking a cautious stance.

On the flip side, retail and small investors are showing more optimism, with a 53.57% inflow ratio for small traders. Though this is a positive sign for retail sentiment, it may not offset the larger outflows.

Key Technical Signals

The technical outlook for SHCO.N is weak, with no bullish indicators and three bearish signals over the last five days. Internal diagnostic score: 2.1 (very weak).

Key Bearish Indicators:

• WR Overbought: Internal diagnostic score: 4.00 (neutral to bearish)
• MACD Death Cross: Internal diagnostic score: 1.00 (strong bearish)
• Marubozu White: Internal diagnostic score: 1.32 (bearish)

Recent Chart Patterns:

• January 5, 2026: MACD Death Cross
• January 2 & 7, 2026: Marubozu White
• December 19 & 24, 2025: WR Overbought

These bearish patterns indicate a lack of momentum and rising sell pressure. Overall trend: Weak, with no strong upward signals in sight.

Conclusion

With weak technical signals, bearish chart patterns, and a low internal technical score of 2.1, it's not advisable to enter new positions in SHCO.N at this time. Analysts are also split, and despite some positive fundamental metrics like high profit growth, key indicators such as debt ratios and cash flow remain concerning. Investors are advised to wait for a clearer trend or improved technical setup before considering Soho House again.