| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4.90 | -96 |
| Intrinsic value (DCF) | 56.36 | -55 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 13.50 | -89 |
Kid ASA is a leading Nordic home textile retailer operating in Norway, Sweden, Finland, and Estonia. The company designs, sources, and sells a wide range of home and interior products, including textiles, curtains, bed linens, kitchenware, and outdoor furniture under brands like Kid, Hemtex, Dekosol, and Nordun. With a strong omnichannel presence, Kid ASA operates 153 stores in Norway, 120 in Sweden, 8 in Finland, and 5 in Estonia, alongside a robust e-commerce platform. Founded in 1937 and headquartered in Lier, Norway, Kid ASA serves the consumer cyclical sector, specializing in affordable yet stylish home décor. The company’s vertically integrated model—combining design, sourcing, and logistics—ensures competitive pricing and product differentiation. As a key player in the Nordic home retail market, Kid ASA benefits from regional brand recognition and a diversified product portfolio catering to everyday household needs.
Kid ASA presents a stable investment opportunity in the Nordic retail sector, supported by its strong market presence and vertically integrated business model. The company’s diversified product range and omnichannel strategy mitigate risks associated with seasonal demand fluctuations. With a market cap of NOK 6.03 billion and a beta of 0.804, Kid ASA offers lower volatility compared to broader retail peers. However, exposure to regional economic conditions and high competition in home textiles could pressure margins. The company’s solid operating cash flow (NOK 863M) and dividend payout (NOK 8/share) signal financial health, but elevated debt (NOK 1.74B) warrants monitoring. Investors should weigh its regional dominance against limited international expansion prospects.
Kid ASA’s competitive advantage lies in its vertically integrated supply chain, enabling cost efficiency and faster product cycles. Its multi-brand strategy (Kid, Hemtex, Dekosol, Nordun) targets diverse customer segments, from budget-conscious to mid-range shoppers. The company’s Nordic focus ensures localized product offerings, a key differentiator against global retailers. However, Kid ASA faces intense competition from both specialty home retailers and mass-market players. Its store footprint provides a defensive moat in Norway and Sweden, but slower growth in Finland and Estonia limits scalability. E-commerce penetration remains a growth lever, though it lags behind pure-play online rivals. The company’s ability to maintain pricing power amid inflationary pressures will be critical, as private-label dominance could erode if competitors undercut on price. Sustainability initiatives and private-label expansion are potential differentiators in a crowded market.