Lyko Group AB (LYKO-A.ST) Stock Analysis & Winston Score

Lyko Group is a Swedish online retailer that sells hair care, skin care, and beauty products. It operates one of the largest e-commerce platforms for professional and consumer beauty products in the Nordic region, carrying thousands of brands ranging from everyday drugstore items to salon-grade products. The company also runs its own hair salons in Sweden, which sets it apart from pure online retailers.

Lyko makes most of its money by selling products directly to consumers through its website, taking a margin on each sale. It operates primarily in Sweden but has expanded into other Nordic and European markets including Norway, Denmark, Finland, and Germany. Its main competitive advantage is its wide product selection and established brand recognition in the Nordics, though its thin operating margin of around 1% shows how competitive online retail can be. The biggest risk the company faces is continued margin pressure as it spends to grow in new European markets against larger, well-funded rivals.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-4.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-283.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

83.0%ownership

Insiders own a meaningful stake in the company

Cash Runway

~0 months

$3M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Lyko Group AB has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 15.3M (2021) → 15.3M (2025)

Score breakdown

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Quality

Gross Margin

44.1%

Healthy — 44.1% gross margin

Operating Margin

0.4%

Thin — 0.4% operating margin

ROCE

0.3%

Weak — 0.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+7.2%

Steady sales growth (7.2% YoY)

EPS YoY

-186.1%

Earnings shrinking (-186.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-8.2%

Burning cash (-8.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.85

Elevated debt (1.85)

Interest Cover

0.63x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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