Nelly Group AB (NELLY) AI Stock Analysis

• Market Cap: €2.70B
• Dividend Yield: N/A
• Average Volume (3M): 120.69K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.69
• Revenue Growth: 12.45%
• EPS Growth: 118.98%
• Country: SE
• Employees: 145
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.38
• Shares Outstanding: 30,074,076
• 10 Day Avg. Volume: 137,838
• 30 Day Avg. Volume: 120,685
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 5.61
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: kr103.00 ▼(-1.53% Downside)

Nelly Group AB's stock is supported by strong technical indicators and a positive financial trajectory, contributing to a solid overall score. The company's improving profitability and operational efficiency are significant strengths. However, historical volatility in financial metrics and the absence of a dividend yield slightly temper the overall score.

Positive Factors

Business Model Strength

The direct-to-consumer model allows Nelly to maintain control over pricing and customer experience, enhancing profitability and brand loyalty over time.

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, supporting long-term business expansion.

Margin Sustainability

High profit margins reflect efficient cost management and pricing power, which are crucial for sustaining profitability in the competitive retail sector.

Negative Factors

Historical Financial Volatility

Past financial volatility can pose risks to stability, requiring careful management to ensure consistent performance and investor confidence.

Cash Flow Concerns

Declining free cash flow growth may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Leverage Risks

While leverage has improved, historical high leverage levels could pose risks if not managed, affecting financial flexibility and risk profile.

Nelly Group AB Business Overview & Revenue Model

Company Description

Nelly Group AB (publ) operates as a fashion company in Sweden, rest of Nordics, Germany, and the Netherlands. It offers fashion and beauty products, and accessories for young women under the Nelly brand. Nelly Group AB (publ) sells and markets its products online through Nelly.com and NLYman.com. The company was formerly known as Qliro Group AB (publ) and changed its name to Nelly Group AB (publ) in November 2020. Nelly Group AB (publ) was incorporated in 1936 and is headquartered in Borås, Sweden.

How the Company Makes Money

Nelly Group AB generates revenue through its online retail operations, primarily by selling women's fashion products directly to consumers via its e-commerce platform. The company employs a direct-to-consumer model, which allows it to capture higher margins by eliminating intermediaries. Key revenue streams include sales from its proprietary clothing lines, as well as partnerships with various well-known fashion brands that allow for a broader product offering. Seasonal promotions, loyalty programs, and targeted marketing strategies also contribute to driving sales. Additionally, Nelly may benefit from affiliate partnerships and collaborations that enhance brand visibility and customer acquisition, further bolstering its earnings.

Nelly Group AB Financial Statement Overview

Summary

Nelly Group AB demonstrates a positive financial trajectory with strong profitability and improving leverage metrics. The company has shown resilience in revenue growth and operational efficiency, as evidenced by improved margins. However, historical volatility in financial metrics and occasional high leverage ratios suggest the need for cautious financial management to mitigate potential risks.

Income Statement

Nelly Group AB has shown a positive trajectory in its income statement metrics. The TTM (Trailing-Twelve-Months) data indicates a healthy gross profit margin of 53.54% and a net profit margin of 10.90%, both of which are strong indicators of profitability. The revenue growth rate of 3.78% in the TTM period suggests a positive trend compared to previous years. Additionally, the EBIT and EBITDA margins have improved significantly, indicating better operational efficiency. However, historical data shows some volatility in revenue and profit margins, which could pose risks if not managed well.

Balance Sheet

The balance sheet of Nelly Group AB reflects a moderate financial position. The debt-to-equity ratio has improved to 0.80 in the TTM period, indicating a reduction in leverage compared to previous years. Return on equity (ROE) is strong at 49.80%, showcasing effective use of equity to generate profits. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to asset financing. Historical high leverage ratios could pose potential risks if the company faces financial stress.

Cash Flow

The cash flow statement reveals mixed results. The TTM data shows a slight decline in free cash flow growth, but the operating cash flow to net income ratio is healthy at 0.40, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 91.47%, suggesting efficient cash management. However, historical volatility in cash flow metrics and occasional negative free cash flow figures highlight potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.09B	1.06B	1.30B	1.43B	1.39B
Gross Profit	650.90M	581.40M	504.20M	566.30M	638.80M	308.90M
EBITDA	168.80M	145.60M	63.60M	-22.40M	-29.10M	-13.90M
Net Income	146.50M	83.40M	-1.50M	-71.70M	-47.80M	-71.00M
Balance Sheet
Total Assets	974.90M	867.80M	799.80M	837.20M	899.90M	655.10M
Cash, Cash Equivalents and Short-Term Investments	226.70M	196.90M	151.10M	96.80M	197.50M	230.10M
Total Debt	286.60M	260.40M	283.60M	294.60M	316.40M	39.50M
Total Liabilities	627.00M	630.70M	621.20M	703.60M	695.50M	405.30M
Stockholders Equity	347.90M	237.10M	178.60M	133.60M	204.40M	249.80M
Cash Flow
Free Cash Flow	129.50M	154.50M	36.40M	-75.90M	-4.30M	-325.30M
Operating Cash Flow	144.10M	154.50M	59.30M	-64.80M	18.80M	-319.10M
Investing Cash Flow	-20.60M	-22.40M	-22.90M	-11.10M	-22.90M	-80.40M
Financing Cash Flow	-57.30M	-56.40M	17.80M	-25.00M	-29.20M	176.30M

Nelly Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NELLY, the sentiment is Positive. The current price of 104.6 is above the 20-day moving average (MA) of 93.70, above the 50-day MA of 91.28, and above the 200-day MA of 62.20, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 60.06 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NELLY.

Nelly 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	kr1.27B	19.74	―	4.62%	9.46%	59.55%
OBAB	66 Neutral	kr340.59M	-16.95	―	―	27.27%	-1165.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBROOM	56 Neutral	kr69.96M	―	―	―	―	―
PIERCE	46 Neutral	€992.18M	-99.21	-1.41%	―	15.59%	16.67%

Nelly Group AB Corporate Events

Nelly Group Appoints Nomination Committee for 2026 AGM

Nelly Group AB has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, which includes representatives from Rite Ventures, ettfemsju själ AB, and Mandatum Life Insurance Company, with Victor Mellgren as the Committee Chair. This strategic move is part of Nelly Group’s ongoing governance efforts, potentially impacting its future leadership and strategic direction, with the Annual General Meeting scheduled for May 18, 2026, in Stockholm.

Nelly Group to Release Q3 2025 Interim Report

Nelly Group AB has announced the release of its third-quarter interim report for 2025, scheduled for October 23. The company invites analysts, investors, and media to a conference call on the same day to discuss the report, with questions to be submitted in writing. This event is part of Nelly Group’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance.