Executive Summary
Lyko Group AB (publ) sells a range of hair care and beauty products in the Nordic markets.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
Share Price & News
How has Lyko Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LYKO A's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.2%
LYKO A
3.7%
SE Specialty Retail
3.7%
SE Market
1 Year Return
357.2%
LYKO A
-15.0%
SE Specialty Retail
7.7%
SE Market
Return vs Industry: LYKO A exceeded the Swedish Specialty Retail industry which returned -13.7% over the past year.
Return vs Market: LYKO A exceeded the Swedish Market which returned 7.5% over the past year.
Shareholder returns
| LYKO A | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.2% | 3.7% | 3.7% |
| 30 Day | 35.2% | -14.8% | 0.8% |
| 90 Day | 85.0% | 5.9% | 18.8% |
| 1 Year | 357.2%357.2% | -13.0%-15.0% | 9.3%7.7% |
| 3 Year | n/a | -21.3%-31.6% | 22.3%9.3% |
| 5 Year | n/a | -45.5%-55.4% | 37.8%10.6% |
Price Volatility Vs. Market
How volatile is Lyko Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Here's Why Lyko Group (STO:LYKO A) Can Manage Its Debt Responsibly1 month ago | Simply Wall St
Have Insiders Been Buying Lyko Group AB (publ) (STO:LYKO A) Shares This Year?2 months ago | Simply Wall St
Why Lyko Group AB (publ)’s (STO:LYKO A) Return On Capital Employed Looks UninspiringValuation
Is Lyko Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LYKO A (SEK246) is trading below our estimate of fair value (SEK860.25)
Significantly Below Fair Value: LYKO A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LYKO A is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.
PE vs Market: LYKO A is unprofitable, so we can't compare its PE Ratio to the Swedish market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LYKO A's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LYKO A is overvalued based on its PB Ratio (11.8x) compared to the SE Specialty Retail industry average (2.3x).
Next Steps
Future Growth
How is Lyko Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
38.8%
Forecasted Retail industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lyko Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine Lyko Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Lyko Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Retail industry.
Past Performance
How has Lyko Group performed over the past 5 years?
17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LYKO A is currently unprofitable.
Growing Profit Margin: LYKO A is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LYKO A is unprofitable, but has reduced losses over the past 5 years at a rate of 17% per year.
Accelerating Growth: Unable to compare LYKO A's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LYKO A is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-3.9%).
Return on Equity
High ROE: LYKO A has a negative Return on Equity (-0.69%), as it is currently unprofitable.
Next Steps
Financial Health
How is Lyko Group's financial position?
Financial Position Analysis
Short Term Liabilities: LYKO A's short term assets (SEK279.8M) do not cover its short term liabilities (SEK315.4M).
Long Term Liabilities: LYKO A's short term assets (SEK279.8M) exceed its long term liabilities (SEK248.5M).
Debt to Equity History and Analysis
Debt Level: LYKO A's debt to equity ratio (25.4%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if LYKO A's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable LYKO A has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: LYKO A is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.3% per year.
Next Steps
Dividend
What is Lyko Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LYKO A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LYKO A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LYKO A's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LYKO A's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LYKO A's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Rickard Lyko (38yo)
1.83yrs
Tenure
kr1,700,000
Compensation
Mr. Rickard Lyko serves as Chief Executive Officer of Lyko Group AB (publ) since September 2018. He served as Chief Digital Officer of Lyko Group AB (publ) since 2015. and its Directors since 2008. Mr. Lyk ...
CEO Compensation Analysis
Compensation vs Market: Rickard's total compensation ($USD183.44K) is below average for companies of similar size in the Swedish market ($USD669.71K).
Compensation vs Earnings: Insufficient data to compare Rickard's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Chief Digital Officer & Director | 1.83yrs | kr1.70m | no data | |
| Chief Financial Officer | 0.75yr | no data | no data | |
| Chief Technology Officer | 4.5yrs | no data | 0.072% SEK2.7m | |
| Head of Sustainability & Communication | no data | no data | no data | |
| Chief Marketing Officer | 3.5yrs | no data | 0.0076% SEK286.2k | |
| Chief Human Resources Officer | 0.75yr | no data | no data | |
| Chief Logistics & Purchasing Officer | 3.5yrs | no data | 0.055% SEK2.1m | |
| Chief Retail Officer | 2.5yrs | no data | 0.0013% SEK49.3k |
2.5yrs
Average Tenure
41yo
Average Age
Experienced Management: LYKO A's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Chief Digital Officer & Director | 1.83yrs | kr1.70m | no data | |
| Independent Chairman of the Board | 1.67yrs | kr300.00k | 0.026% SEK984.1k | |
| Independent Director | 6.5yrs | kr150.00k | no data | |
| Independent Director | 3.5yrs | kr150.00k | 0.013% SEK483.2k |
5.0yrs
Average Tenure
49yo
Average Age
Experienced Board: LYKO A's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LYKO A insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Lyko Group AB (publ)'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lyko Group AB (publ)
- Ticker: LYKO A
- Exchange: OM
- Founded:
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: kr3.766b
- Shares outstanding: 15.31m
- Website: https://www.lyko.se
Location
- Lyko Group AB (publ)
- Kyrkbyvägen 1
- Vansbro
- Dalarna County
- 786 33
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LYKO A | OM (OMX Nordic Exchange Stockholm) | Yes | Common Shares | SE | SEK | Dec 2017 |
Biography
Lyko Group AB (publ) sells a range of hair care and beauty products in the Nordic markets. Its product categories include hair and skin care products, makeups, and perfumes. The company sells its products through 40 stores in Sweden and Norway, as well as through Websites, Lyko.se and Lyko.no. It also sells underwear and other products for men, women, and children, as well as operates beauty pharmacies. The company is based in Vansbro, Sweden.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/07 20:53 |
| End of Day Share Price | 2020/07/07 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.