BHG Group AB (BHG) AI Stock Analysis

• Market Cap: kr4.02B
• Dividend Yield: N/A
• Average Volume (3M): 358.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -2.20%
• EPS Growth: 74.71%
• Country: SE
• Employees: 1,347
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Retail
• EPS (TTM): 0.42
• Shares Outstanding: 179,233,570
• 10 Day Avg. Volume: 302,294
• 30 Day Avg. Volume: 358,934
• PEG Ratio: 0.09
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 6.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr22.50
• Price Target Upside: 0.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: kr22.50 ▲(0.63% Upside)

The overall stock score for BHG Group AB is primarily impacted by its mixed financial performance and bearish technical indicators. Strong revenue growth is overshadowed by profitability challenges and negative valuation metrics. Technical analysis suggests bearish momentum, further weighing on the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

BHG Group AB Business Overview & Revenue Model

Company Description

BHG Group AB (publ) operates as a consumer e-commerce company in Sweden, Finland, Denmark, Norway, rest of Europe, and internationally. It operates in two segments, Do-It-Yourself (DIY) and Home Furnishing. The company offers a range of brands totalling approximately 1.5 million products within DIY, leisure, furniture, and furnishings. It operates approximately 100 online sites comprising bygghemma.se, trademax.se, chilli.se, nordicnest.se, and furniturebox.se, as well as approximately 70 showrooms. The company was formerly known as Bygghemma Group First AB (publ) and changed its name to BHG Group AB (publ) in May 2020. BHG Group AB (publ) was founded in 2006 and is headquartered in Malmö, Sweden.

How the Company Makes Money

BHG generates revenue primarily through its e-commerce sales, which involve direct online transactions of its home improvement and lifestyle products. The company leverages a multi-brand strategy, offering a diverse portfolio of products under various brand names, which helps in attracting a broad customer base. Key revenue streams include sales from its own websites, as well as partnerships with third-party retailers and marketplaces that facilitate additional sales. Furthermore, BHG capitalizes on its logistics and supply chain efficiencies to reduce costs and enhance profitability. Significant partnerships with logistics providers and marketing platforms also contribute to its earnings by optimizing customer acquisition and fulfillment processes.

BHG Group AB Financial Statement Overview

Summary

BHG Group AB faces significant challenges with declining revenue and persistent losses impacting its profitability and return on equity. While the balance sheet remains relatively stable with manageable debt levels, cash flow generation is a positive aspect. The company needs to address operational inefficiencies to improve its financial health.

Income Statement

The income statement shows declining revenue from its peak in 2022, with a negative net income in recent periods. Despite a substantial gross profit, the company is experiencing negative EBIT and EBITDA margins, indicating operational inefficiencies. The revenue growth trend is negative, reflecting a challenging market position.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio has decreased over the years, suggesting a decline in financial stability. The return on equity is negative due to the company's losses, highlighting profitability challenges.

Cash Flow

Cash flow analysis shows a positive operating cash flow and improved free cash flow in the TTM period. However, the free cash flow to net income ratio indicates inefficiencies due to negative net income. The company has shown some resilience in cash flow generation despite operating losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.19B	9.96B	11.79B	13.43B	12.67B	8.97B
Gross Profit	2.55B	2.43B	1.87B	2.98B	3.36B	2.33B
EBITDA	687.50M	452.00M	-867.60M	635.10M	1.01B	833.60M
Net Income	-414.40M	-678.80M	-1.56B	45.80M	480.90M	415.10M
Balance Sheet
Total Assets	11.08B	10.89B	11.42B	14.28B	13.61B	8.63B
Cash, Cash Equivalents and Short-Term Investments	682.10M	451.30M	370.30M	477.60M	273.50M	299.00M
Total Debt	2.83B	2.84B	2.56B	2.89B	3.40B	2.64B
Total Liabilities	5.08B	4.91B	4.91B	6.61B	8.36B	5.81B
Stockholders Equity	5.81B	5.79B	6.34B	7.61B	5.21B	2.79B
Cash Flow
Free Cash Flow	700.30M	522.20M	1.37B	-304.30M	-220.90M	899.80M
Operating Cash Flow	700.30M	657.20M	1.55B	-105.60M	-27.60M	994.30M
Investing Cash Flow	-83.10M	-77.60M	-654.40M	-454.90M	-1.86B	-2.04B
Financing Cash Flow	-249.30M	-477.40M	-970.90M	765.10M	1.85B	1.10B

BHG Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BHG, the sentiment is Negative. The current price of 22.36 is below the 20-day moving average (MA) of 23.90, below the 50-day MA of 23.78, and below the 200-day MA of 22.39, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 35.30 is Neutral, neither overbought nor oversold. The STOCH value of 11.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BHG.

BHG Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	73 Outperform	€2.33B	18.31	50.07%	―	8.68%	137.29%
BOKUS	72 Outperform	kr1.14B	22.34		4.90%	10.14%	11.14%
Sector *	66 Neutral	€3.99B	17.04	-2.44%	3.90%	1.88%	-16.39%
PIERCE	63 Neutral	kr704.84M	19.05	-3.61%	―	8.07%	61.01%
BHG	46 Neutral	kr4.02B	―		―	-2.20%	74.71%
DSNO	41 Neutral	€108.50M	―	-193.46%	―	-11.18%	96.64%

BHG Group AB Corporate Events

BHG Group AB Annual Meeting: Strategic Resolutions and Incentive Programs

At its annual general meeting, BHG Group AB decided not to distribute dividends for the 2024 financial year, opting instead to carry forward the company’s results. The meeting also re-elected board members and approved a new share-based incentive program aimed at senior executives, enhancing the company’s capital structure flexibility and aligning management interests with shareholder value. Additionally, the board was authorized to issue new shares to support acquisition strategies, reflecting BHG’s focus on strategic growth and market positioning.