Intrinsic Value Boozt AB (publ) (0RPY.L)

• Previous Close: £90.40
• Intrinsic Value: £47.47
• Upside potential: -47%

Stock Valuation Context

Business Model And Market Position

Boozt AB is a leading Nordic online fashion and beauty retailer, operating primarily through its multi-brand platform Boozt.com and clearance channel Booztlet.com. The company partners with approximately 1,000 brands, offering a curated selection of apparel, accessories, sportswear, and beauty products across 10 European markets. Its hybrid model combines full-price sales with inventory clearance, supported by a growing physical retail presence under the Booztlet and Beauty by Boozt store concepts. Boozt competes in the highly fragmented European e-commerce fashion sector by leveraging its localized logistics network, data-driven personalization, and strong brand partnerships. The company has established itself as a market leader in Scandinavia while expanding selectively into other European markets. Its vertically integrated operations and proprietary technology platform provide competitive advantages in customer acquisition and retention.

Revenue Profitability And Efficiency

Boozt generated SEK 8.24 billion in revenue for the period, with net income of SEK 342 million, reflecting a 4.1% net margin. The company maintains healthy operating cash flow of SEK 251 million, though capital expenditures of SEK 124 million indicate ongoing investments in infrastructure and technology. The business demonstrates disciplined cost management, with its dual-platform model helping optimize inventory turnover and margin preservation.

Earnings Power And Capital Efficiency

With diluted EPS of SEK 4.98, Boozt shows solid earnings power despite operating in a competitive e-commerce environment. The company's capital efficiency is supported by its asset-light model and working capital management, though the beta of 2.04 reflects higher volatility typical of growth-oriented online retailers. Operating cash flow covers capital expenditures comfortably, allowing for organic growth funding.

Balance Sheet And Financial Health

Boozt maintains a strong liquidity position with SEK 1.17 billion in cash and equivalents against SEK 878 million in total debt. The balance sheet structure supports ongoing expansion plans, with sufficient headroom for strategic investments. The absence of dividends allows for reinvestment in growth initiatives, while the debt level appears manageable given the company's cash generation capabilities.

Growth Trends And Dividend Policy

Boozt continues its expansion across European markets, focusing on both geographic and category growth. The company maintains a zero-dividend policy, reinvesting all profits into platform development, customer acquisition, and potential M&A. Growth trends reflect the ongoing shift to online fashion retail in its core markets, with the clearance channel providing additional inventory management flexibility.

Valuation And Market Expectations

At a market capitalization of SEK 5.39 billion, Boozt trades at approximately 0.65x revenue and 15.8x trailing earnings. The valuation reflects market expectations for continued growth in the Nordic e-commerce sector, balanced against competitive pressures and macroeconomic uncertainties affecting discretionary consumer spending.

Strategic Advantages And Outlook

Boozt's strategic advantages include its first-mover position in Nordic online fashion, proprietary technology platform, and multi-brand curation capabilities. The outlook remains cautiously positive, with expansion opportunities balanced against sector-wide margin pressures. The company's ability to maintain growth while improving profitability metrics will be key to long-term value creation in the evolving European e-commerce landscape.

Sources

Company filings, market data