Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

BHG Group

BHG Group

Home improvement online

BHG has grown to be the leading online retailer of DIY and home furnishing goods in the Nordics, with a market share of ~30%. The group has also expanded into Eastern Europe through the acquisition of Furniture1. The drop-shipping model is a key success factor for BHG, but it has recently established an in-house solution for last-mile deliveries, allowing for an increased range of services.

We believe that BHG could reap the benefits of a fast-growing online market within Home Improvement. In addition, we see room for the company to fuel growth further through M&A, while a greater share of proprietary brands could support its margins going forward.

A global recession caused by COVID-19 could put a dent in demand. We do not rule out that new market entrants could compete for BHG’s No.1 spot. BHG runs a clear acquisition-driven agenda. Hence, there are naturally some M&A related risks.

SEKm 2019 2020e 2021e
Sales 6213 8378 8805
Sales growth (%) 24,9 34,9 5,1
EBITDA 468 744 727
EBITDA margin (%) 7,5 8,9 8,3
EBIT adj 290 583 568
EBIT adj margin (%) 4,7 7 6,5
Pretax profit 233 496 511
EPS rep 1,64 3,54 3,73
EPS growth (%) 253,2 115,1 5,4
EPS adj 1,98 3,85 4,05
DPS 0 0 0,5
EV/EBITDA (x) 15,7 16,9 17
EV/EBIT adj (x) 25,3 21,6 21,7
P/E (x) 35,5 31,5 29,9
P/E adj (x) 29,4 28,9 27,5
EV/sales (x) 1,2 1,5 1,4
FCF yield (%) 0,7 5,6 4,2
Dividend yield (%) 0 0 0,4
Net IB debt/EBITDA 2,3 0,8 0,5
N/A N/A N/A
SEKm 2019 2020e 2021e
Sales 6213 8378 8805
COGS -4722 -6266 -6592
Gross profit 1491 2113 2213
Other operating items -1023 -1369 -1486
EBITDA 468 744 727
Depreciation on tangibles -44 -50 -53
Depreciation on intangibles 0 0 0
EBITA 323 540 525
Goodwill impairment charges 0 0 0
Other impairment and amortisation -41 0 0
EBIT 282 540 525
Other financial items 0 0 0
Net financial items -49 -44 -14
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 233 496 511
Tax -53 -111 -105
Net profit 180 385 405
Minority interest -4 -5 -5
Net profit discontinued 0 0 0
Net profit to shareholders 177 380 400
EPS 1,64 3,54 3,73
EPS Adj 1,98 3,85 4,05
Total extraordinary items after tax -7,5 -43,2 -43,2
Tax rate (%) -22,8 -22,4 -20,6
Gross margin (%) 24 25,2 25,1
EBITDA margin (%) 7,5 8,9 8,3
EBITA margin (%) 5,2 6,4 6
EBIT margin (%) 4,5 6,4 6
Pretax margin (%) 3,8 5,9 5,8
Net margin (%) 2,9 4,6 4,6
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 24,9 34,9 5,1
EBITDA growth (%) 205,8 59,1 -2,4
EBIT growth (%) 223,6 91,2 -2,7
Net profit growth (%) 254,7 113,6 5,3
EPS growth (%) 253,2 115,1 5,4
Profitability 2019 2020 2021
ROE (%) 6,2 12,6 12
ROE Adj (%) 7,5 13,7 13
ROCE (%) 6,7 12,3 11
ROCE Adj(%) 8 13,3 11,9
ROIC (%) 5,1 8,8 8,6
ROIC Adj (%) 5,2 9,5 9,3
Adj earnings numbers 2019 2020 2021
EBITDA Adj 475 787 770
EBITDA Adj margin (%) 7,7 9,4 8,7
EBITA Adj 330 583 568
EBITA Adj margin (%) 5,3 7 6,5
EBIT Adj 290 583 568
EBIT Adj margin (%) 4,7 7 6,5
Pretax profit Adj 281 539 554
Net profit Adj 217 418 440
Net profit to shareholders Adj 213 413 435
Net Adj margin (%) 3,5 5 5
N/A N/A N/A
SEKm 2019 2020e 2021e
EBITDA 468 744 727
Net financial items -49 -44 -14
Paid tax -53 -111 -105
Non-cash items 44 69 9
Cash flow before change in WC 410 659 616
Change in WC -19 123 22
Operating cash flow 391 782 638
CAPEX tangible fixed assets -98 -107 -132
CAPEX intangible fixed assets 1 1 0
Acquisitions and disposals -252 0 0
Free cash flow 43 675 506
Dividend paid 0 0 -54
Share issues and buybacks 0 0 0
Other non cash items -887 -396 -245
Decrease in net IB debt -559 448 231
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 2897 3011 3011
Indefinite intangible assets 0 0 0
Definite intangible assets 1294 1347 1407
Tangible fixed assets 51 65 85
Other fixed assets 20 20 20
Fixed assets 4720 4924 5077
Inventories 668 733 846
Receivables 359 368 424
Other current assets 0 0 0
Cash and liquid assets 270 792 1097
Total assets 6018 6817 7444
Shareholders equity 2890 3160 3522
Minority 35 38 38
Total equity 2925 3198 3560
Long-term debt 814 821 821
Pension debt 23 23 23
Convertible debt 0 0 0
Deferred tax 250 255 255
Other long-term liabilities 507 704 704
Short-term debt 48 94 94
Accounts payable 535 670 704
Other current liabilities 459 572 729
Total liabilities and equity 6018 6817 7444
Net IB debt 1066 618 388
Net IB debt excl. pension debt 1043 595 364
Capital invested 4747 4774 4906
Working capital 34 -141 -163
EV breakdown 2019 2020 2021
Market cap. diluted (m) 6270 11961 11961
Net IB debt Adj 1066 618 388
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 7336 12579 12348
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 114,3 130,6 123,5
Capital invested turnover (%) 144,8 176 181,9
Capital employed turnover (%) 158,9 188,6 182,1
Inventories / sales (%) 9,4 8,4 9
Customer advances / sales (%) 0 0 0
Payables / sales (%) 8,3 7,2 7,8
Working capital / sales (%) 0,1 -0,6 -1,7
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 36,4 19,3 10,9
Net debt / market cap (%) 23,5 5,2 3,2
Equity ratio (%) 48,6 46,9 47,8
Net IB debt adj. / equity (%) 36,4 19,3 10,9
Current ratio (%) 111,9 128,9 140,9
EBITDA / net interest (%) 958,6 1702,1 5100,2
Net IB debt / EBITDA (%) 227,8 83,1 53,4
Interest cover (%) 1019,1 1083 2331,3
N/A N/A N/A
SEKm 2019 2020e 2021e
Shares outstanding adj. 107 107 107
Fully diluted shares Adj 107 107 107
EPS 1,64 3,54 3,73
Dividend per share Adj 0 0 0,5
EPS Adj 1,98 3,85 4,05
BVPS 26,91 29,43 32,8
BVPS Adj -12,11 -11,16 -8,34
Net IB debt / share 9,9 5,8 3,6
Share price 42,15 111,4 111,4
Market cap. (m) 4526 11961 11961
Valuation 2019 2020 2021
P/E 35,5 31,5 29,9
EV/sales 1,18 1,5 1,4
EV/EBITDA 15,7 16,9 17
EV/EBITA 22,7 23,3 23,5
EV/EBIT 26 23,3 23,5
Dividend yield (%) 0 0 0,4
FCF yield (%) 0,7 5,6 4,2
P/BVPS 2,17 3,79 3,4
P/BVPS Adj -4,82 -9,98 -13,35
P/E Adj 29,4 28,9 27,5
EV/EBITDA Adj 15,4 16 16
EV/EBITA Adj 22,2 21,6 21,7
EV/EBIT Adj 25,3 21,6 21,7
EV/cap. employed 1,7 2,7 2,4
Investment ratios 2019 2020 2021
Capex / sales 1,6 1,3 1,5
Capex / depreciation 219,8 212,1 251,5
Capex tangibles / tangible fixed assets 194,1 164,2 155,2
Capex intangibles / definite intangibles -0,1 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 87,1 77 61,7
N/A N/A N/A

Equity research

Read earlier research

Media

BHG Group - Company presentation with CEO Adam Schatz and CFO Jesper Flemme (in English)

Main shareholders - Bygghemma

Main shareholders Share capital % Voting shares % Verified
EQT 20.0 % 20.0 % 31 Mar 2020
Capital Group 8.0 % 8.0 % 30 Jun 2020
Swedbank Robur Fonder 8.0 % 8.0 % 31 Aug 2020
Lannebo Fonder 4.8 % 4.8 % 31 Aug 2020
Handelsbanken Fonder 4.7 % 4.7 % 31 Aug 2020
Arbejdsmarkedets Tillægspension (ATP) 4.7 % 4.7 % 30 Jun 2020
Cliens Fonder 3.5 % 3.5 % 31 Aug 2020
Creades AB 2.0 % 2.0 % 31 Dec 2019
Norges Bank 1.9 % 1.9 % 31 Aug 2020
Janus Henderson Investors 1.7 % 1.7 % 31 Jul 2020
Source: Holdings by Modular Finance AB

Insider list - Bygghemma

Name Quantity Code Date
Adam Schatz + 50 000 BUY 31 Aug 2020
Jesper Flemme + 50 000 BUY 31 Aug 2020
Mikael Olander - 26 150 SELL 28 Jul 2020
Mikael Olander - 262 000 SELL 27 Jul 2020
Mikael Olander -1 250 000 SELL 18 Jun 2020
Mikael Olander -3 030 000 SELL 17 Jun 2020
Adam Schatz + 3 700 BUY 28 Feb 2020
Martin Edblad - 770 102 SELL 12 Nov 2019
mikael olander - 496 532 SELL 12 Nov 2019
Adam Schatz + 1 200 BUY 18 Jul 2019

Show More