BHG Group AB (BHG) AI Stock Analysis

• Market Cap: kr5.01B
• Dividend Yield: N/A
• Average Volume (3M): 288.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 5.27%
• EPS Growth: 15.33%
• Country: SE
• Employees: 1,347
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Retail
• EPS (TTM): 0.07
• Shares Outstanding: 179,233,570
• 10 Day Avg. Volume: 350,471
• 30 Day Avg. Volume: 288,410
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: kr31.00 ▼(-2.39% Downside)

The overall stock score for BHG Group AB is primarily influenced by its financial performance challenges, particularly in profitability and cash flow stability. While technical analysis indicates positive momentum, the valuation is unattractive due to negative earnings and lack of dividends. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

BHG Group AB's revenue growth indicates a positive trend in sales, suggesting effective market penetration and product demand.

Market Position

As a leading player in the Nordic e-commerce market, BHG benefits from strong brand recognition and a broad customer base.

Cash Generation Ability

Efficient cash generation relative to net income suggests BHG can sustain operations and invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder long-term financial health and growth.

Cash Flow Volatility

Volatile cash flow can limit BHG's ability to plan for future investments and manage financial obligations effectively.

Declining Stockholders' Equity

A decline in stockholders' equity suggests potential financial instability and reduced shareholder value over time.

BHG Group AB Business Overview & Revenue Model

Company Description

BHG Group AB (BHG) is a leading Nordic e-commerce company specializing in home improvement and outdoor living products. The company operates a range of online retail platforms that offer a wide assortment of goods, including furniture, gardening supplies, tools, and other home-related items. BHG focuses on providing high-quality products and a seamless shopping experience to its customers, leveraging advanced technology and logistics to enhance efficiency and customer satisfaction.

How the Company Makes Money

BHG generates revenue primarily through its online retail sales across multiple platforms. The company's revenue model is predominantly based on direct sales of products to consumers, where it earns a margin on each item sold. Key revenue streams include sales from its proprietary websites and marketplaces, as well as potential subscription services or loyalty programs that encourage repeat purchases. BHG also benefits from strategic partnerships with various suppliers and brands, allowing it to expand its product offerings and enhance its competitive positioning in the market. Additionally, the company may engage in marketing collaborations and affiliate programs, providing further avenues for revenue generation.

BHG Group AB Financial Statement Overview

Summary

BHG Group AB shows mixed financial performance. Revenue growth is strong at 28.5%, but profitability is a concern with negative net profit and EBIT margins. The balance sheet is stable with a debt-to-equity ratio of 0.49, but return on equity is negative. Cash flow is improving, with a 17.46% growth in free cash flow, but sustaining this growth is crucial.

Income Statement

BHG Group AB's income statement shows a mixed performance. The company has experienced a significant revenue growth of 28.5% in the TTM period, indicating a positive trend. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is stable at around 25%, but the negative net profit margin of -4.07% highlights the need for cost management and efficiency improvements.

Balance Sheet

The balance sheet of BHG Group AB reveals moderate financial stability. The debt-to-equity ratio stands at 0.49, suggesting a balanced approach to leveraging. However, the negative return on equity of -7.07% in the TTM period indicates inefficiencies in generating returns for shareholders. The equity ratio of approximately 52.5% reflects a solid capital structure, but the company needs to address profitability issues to enhance shareholder value.

Cash Flow

BHG Group AB's cash flow statement shows a positive trajectory with a 17.46% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 0.31 indicates a reasonable conversion of earnings into cash. The free cash flow to net income ratio of 1.0 suggests effective cash management. Despite these strengths, the company must focus on sustaining cash flow growth to support its operations and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.43B	9.96B	11.79B	13.43B	12.67B	8.97B
Gross Profit	2.05B	2.43B	1.87B	2.98B	3.36B	2.33B
EBITDA	744.80M	452.00M	-867.60M	635.10M	1.01B	833.60M
Net Income	-336.00M	-678.80M	-1.56B	45.80M	480.90M	415.10M
Balance Sheet
Total Assets	10.61B	10.89B	11.42B	14.28B	13.61B	8.63B
Cash, Cash Equivalents and Short-Term Investments	261.80M	451.30M	370.30M	477.60M	273.50M	299.00M
Total Debt	2.45B	2.84B	2.51B	2.89B	3.40B	2.64B
Total Liabilities	4.57B	4.91B	4.91B	6.61B	8.36B	5.81B
Stockholders Equity	5.84B	5.79B	6.34B	7.61B	5.21B	2.79B
Cash Flow
Free Cash Flow	584.20M	522.20M	1.37B	-304.30M	-220.90M	899.80M
Operating Cash Flow	613.90M	657.20M	1.55B	-105.60M	-27.60M	994.30M
Investing Cash Flow	-191.90M	-77.60M	-654.40M	-454.90M	-1.86B	-2.04B
Financing Cash Flow	-415.90M	-477.40M	-970.90M	765.10M	1.85B	1.10B

BHG Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BHG, the sentiment is Positive. The current price of 31.76 is above the 20-day moving average (MA) of 28.06, above the 50-day MA of 28.02, and above the 200-day MA of 25.26, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	€2.70B	18.42	51.02%	―	12.45%	118.98%
BOKUS	70 Outperform	kr1.38B	21.50	―	4.86%	9.46%	59.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BHG	54 Neutral	kr5.01B	-14.90	―	―	5.27%	15.33%
PIERCE	46 Neutral	€1.03B	-73.41	-1.41%	―	15.59%	16.67%
DSNO	41 Neutral	€72.46M	―	-197.48%	―	-10.50%	99.53%

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.