Lyko Group (OM:LYKO A) - Share price, News & Analysis

LYKO A fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

LYKO A Stock Overview

Lyko Group AB (publ) sells a range of hair care and beauty products in the Nordic markets.

Rewards

Trading at 19.6% below our estimate of its fair value

Earnings are forecast to grow 80.25% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (2.1%)

Lyko Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lyko Group
Historical stock prices
Current Share Price	kr207.50
52 Week High	kr394.00
52 Week Low	kr175.00
Beta	0.37
1 Month Change	-5.47%
3 Month Change	-13.90%
1 Year Change	-33.81%
3 Year Change	284.26%
5 Year Change	n/a
Change since IPO	302.91%

Recent News & Updates

Apr 29

Lyko Group (STO:LYKO A) Is Reinvesting At Lower Rates Of Return

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Shareholder Returns

	LYKO A	SE Specialty Retail	SE Market
7D	1.5%	-3.3%	0.05%
1Y	-33.8%	-36.9%	-12.2%

Return vs Industry: LYKO A exceeded the Swedish Specialty Retail industry which returned -36.9% over the past year.

Return vs Market: LYKO A underperformed the Swedish Market which returned -12.2% over the past year.

Price Volatility

Is LYKO A's price volatile compared to industry and market?
LYKO A volatility
LYKO A Average Weekly Movement	8.2%
Specialty Retail Industry Average Movement	6.2%
Market Average Movement	7.6%
10% most volatile stocks in SE Market	12.8%
10% least volatile stocks in SE Market	4.9%

Stable Share Price: LYKO A is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LYKO A's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	900	Rickard Lyko	https://www.lyko.se

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 33 stores in Sweden and Norway, as well as through websites, Lyko.se and Lyko.no.

Lyko Group Fundamentals Summary

How do Lyko Group's earnings and revenue compare to its market cap?
LYKO A fundamental statistics
Market Cap	kr3.18b
Earnings (TTM)	kr17.50m
Revenue (TTM)	kr2.26b

181.5x

P/E Ratio

1.4x

P/S Ratio

Is LYKO A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LYKO A income statement (TTM)
Revenue	kr2.26b
Cost of Revenue	kr1.27b
Gross Profit	kr989.50m
Other Expenses	kr972.00m
Earnings	kr17.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.14
Gross Margin	43.80%
Net Profit Margin	0.77%
Debt/Equity Ratio	27.6%

How did LYKO A perform over the long term?

See historical performance and comparison

Valuation

Is Lyko Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

19.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LYKO A (SEK207.5) is trading below our estimate of fair value (SEK258.07)

Significantly Below Fair Value: LYKO A is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: LYKO A is poor value based on its Price-To-Earnings Ratio (181.5x) compared to the Swedish Specialty Retail industry average (16.6x).

PE vs Market: LYKO A is poor value based on its Price-To-Earnings Ratio (181.5x) compared to the Swedish market (17.5x).

Price to Earnings Growth Ratio

PEG Ratio: LYKO A is poor value based on its PEG Ratio (2.3x)

Price to Book Ratio

PB vs Industry: LYKO A is overvalued based on its Price-To-Book Ratio (8.5x) compared to the SE Specialty Retail industry average (2.8x).

Future Growth

How is Lyko Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

80.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYKO A's forecast earnings growth (80.2% per year) is above the savings rate (0.3%).

Earnings vs Market: LYKO A's earnings (80.2% per year) are forecast to grow faster than the Swedish market (9.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LYKO A's revenue (22.4% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: LYKO A's revenue (22.4% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LYKO A's Return on Equity is forecast to be low in 3 years time (13.2%).

Past Performance

How has Lyko Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

79.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LYKO A has a large one-off gain of SEK7.3M impacting its March 31 2022 financial results.

Growing Profit Margin: LYKO A's current net profit margins (0.8%) are lower than last year (2.1%).

Past Earnings Growth Analysis

Earnings Trend: LYKO A has become profitable over the past 5 years, growing earnings by 79.7% per year.

Accelerating Growth: LYKO A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LYKO A had negative earnings growth (-53.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (35.7%).

Return on Equity

High ROE: LYKO A's Return on Equity (4.7%) is considered low.

Financial Health

How is Lyko Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LYKO A's short term assets (SEK487.4M) do not cover its short term liabilities (SEK593.3M).

Long Term Liabilities: LYKO A's short term assets (SEK487.4M) exceed its long term liabilities (SEK256.1M).

Debt to Equity History and Analysis

Debt Level: LYKO A's net debt to equity ratio (21%) is considered satisfactory.

Reducing Debt: LYKO A's debt to equity ratio has reduced from 104.7% to 27.6% over the past 5 years.

Debt Coverage: LYKO A's debt is well covered by operating cash flow (102.9%).

Interest Coverage: LYKO A's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Dividend

What is Lyko Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LYKO A has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Rickard Lyko (39 yo)

3.67yrs

Tenure

kr2,900,000

Compensation

Mr. Rickard Lyko serves as Chief Executive Officer of Lyko Group AB (publ) since September 2018. He is Chief Digital Officer of Lyko Group AB (publ) since 2015 also serves as its Directors since 2008. Mr....

CEO Compensation Analysis

Compensation vs Market: Rickard's total compensation ($USD296.38K) is below average for companies of similar size in the Swedish market ($USD551.15K).

Compensation vs Earnings: Rickard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: LYKO A's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: LYKO A's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31