BHG Group AB (publ) (BHG.ST) fair value

ACCE thesis

BHG Group runs Stockholm-based online retail for beauty, health and personal care through brands such as Lyko and Bygghemma's sister platforms, with the bulk of sales coming from its e-commerce storefronts. Its edge is scale in a niche where repeat purchasing and private-label mix can lift margins, though at a 17.5% gross margin and 3.5% operating margin it is still a thin-margin retailer rather than a platform business. The near-term driver is operating leverage: revenue is growing 10.2% and the forward P/E of 17.8 against a trailing 44.3 implies earnings are expected to recover sharply as the cost base spreads over that volume. The stock is interesting now because the gap between trailing and forward earnings is wide, so the question for a PM is whether margin expansion actually shows up in reported numbers, given the 2.5% ROE says the business has not yet converted growth into returns. This is worth a deeper look on the margin trajectory, not on the headline growth rate.