| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.80 | -97 |
| Intrinsic value (DCF) | 8.83 | -71 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 2.00 | -93 |
BHG Group AB (publ) is a leading Nordic consumer e-commerce company specializing in DIY and home furnishing products. Headquartered in Malmö, Sweden, BHG Group operates approximately 100 online sites, including well-known brands like bygghemma.se, trademax.se, chilli.se, and nordicnest.se, alongside 70 showrooms. The company offers an extensive product portfolio of around 1.5 million items, catering to DIY enthusiasts, leisure activities, and home furnishing needs across Sweden, Finland, Denmark, Norway, and other European markets. Formerly known as Bygghemma Group First AB, the company rebranded to BHG Group in 2020 to reflect its diversified market presence. With a strong digital-first approach, BHG Group leverages its multi-brand strategy to capture a broad consumer base in the competitive e-commerce and specialty retail sector. Despite recent financial challenges, the company remains a key player in the Nordic e-commerce landscape, focusing on operational efficiency and market expansion.
BHG Group presents a mixed investment profile. The company operates in the high-growth e-commerce and specialty retail sector, benefiting from the increasing trend of online shopping in the Nordic region. However, its financials reveal significant challenges, including a net loss of SEK 678.8 million in the latest fiscal year and a negative diluted EPS of SEK -3.79. The company's high beta of 1.856 indicates substantial volatility relative to the market, which may deter risk-averse investors. On the positive side, BHG Group generated SEK 657.2 million in operating cash flow, suggesting underlying operational strength. The absence of dividends and a substantial debt load (SEK 2.84 billion) further complicate the investment case. Investors should weigh the company's market position and growth potential against its financial instability and sector competition.
BHG Group competes in the crowded Nordic e-commerce and home improvement retail sector, where it differentiates itself through a multi-brand strategy and a vast product assortment. The company's strength lies in its diversified online presence, with specialized sites targeting different consumer segments (e.g., DIY, furniture, leisure). However, BHG faces intense competition from both pure-play e-commerce giants and traditional retailers expanding online. Its competitive positioning is challenged by larger players with stronger financials and broader logistics networks. BHG's focus on the Nordic market provides regional expertise but limits scalability compared to global competitors. The company's ability to streamline operations and improve profitability will be critical in maintaining its market share. While BHG has a loyal customer base, its high debt and recent losses raise concerns about long-term sustainability in a price-sensitive industry.