Boozt AB: Strong Growth and Profitability Point to Upside Potential

Buy signal | Free publication | 23 May 2025

Summary of Boozt AB's activities

Boozt AB is a Swedish e-commerce company specializing in fashion and lifestyle products. The company operates primarily through its online platform Boozt.com, offering a wide range of brands to customers across the Nordic region.

E-commerce platform: Online retail of fashion, apparel, beauty and lifestyle products.
Multi-brand selection: Over 1,000 brands available through the platform.
Logistics services: Advanced warehouse operations and distribution capabilities.

Valuation of Boozt AB

Turnover : 4.5/5 - Steady growth from SEK 3.425 billion in 2019 to SEK 8.244 billion in 2024, with a CAGR of 19.2% over 5 years, though growth has slowed recently.
Net profit : 4.5/5 - Significant growth from SEK 54.8 million in 2019 to SEK 343 million in 2024, with a CAGR of 44.3% over 5 years.
Debt : 4/5 - Net debt decreased from SEK 635 million in 2019 to SEK 878 million in 2024 with debt/equity ratio improving from 67.4% to 29.4%.
Return on equity (ROE) : 4/5 - ROE 2024: 12.73%, with forecasts rising to 13.9% in 2026 and 14.7% in 2027, above sector average.
Market performance : 3.5/5 - Current PE of 18.38x versus forecast of 17.34x, with price-to-sales ratio of 0.708 suggesting potential undervaluation.

Average : 4.1/5 - Boozt AB shows strong financial performance with consistent revenue growth, improving profitability and strengthening balance sheet. The main concern is the recent slowdown in revenue growth.

Forecasts for the coming years

2025 : Sales: SEK 8.742 billion (+6% vs 2024), Net profit: SEK 352.25 million (-3% vs 2024), EPS: SEK 5.418 (+3.8% vs 2024).
2026 : Sales: SEK 9.363 billion (+7.1% vs 2025), Net profit: SEK 401.5 million (+14% vs 2025), EPS: SEK 6.36 (+17.4% vs 2025).
2027 : Sales: SEK 9.475 billion (+1.2% vs 2026), Net profit: SEK 469 million (+16.8% vs 2026), EPS: SEK 7.193 (+13.1% vs 2026).

Estimated share value

For 2025, with a forecast EPS of SEK 5.8 and forecast PE of 17.34x, the estimated share value could reach SEK 100-110. For 2026, with forecast EPS of SEK 6.70, the estimated value could rise to SEK 120-130.

Summary

Boozt AB demonstrates strong financial performance with consistent revenue growth and improving profitability. The company shows potential for share price appreciation, supported by solid fundamentals and improving return metrics.