NCAB Group AB (NCAB) AI Stock Analysis

• Market Cap: kr10.26B
• Dividend Yield: N/A
• Average Volume (3M): 376.40K
• Price to Earnings (P/E): 49.8
• Beta (1Y): 1.48
• Revenue Growth: 0.26%
• EPS Growth: -30.60%
• Country: SE
• Employees: 607
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.28
• Shares Outstanding: 186,971,240
• 10 Day Avg. Volume: 226,351
• 30 Day Avg. Volume: 376,397
• PEG Ratio: -2.27
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 2.39
• P/FCF Ratio: 31.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr59.00
• Price Target Upside: 28.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): kr4.15B

• Rating: 57 Neutral
• Price Target: kr46.00 ▲(0.31% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by stable but cooling fundamentals (profitability intact, leverage manageable, but weaker growth, margin compression, and softer free cash flow). Technicals add pressure with the stock trading below key moving averages and negative MACD. Valuation is a further headwind due to a high P/E without a supporting dividend yield.

Positive Factors

Asset-light supply-chain partner model

NCAB's asset-light model (outsourced PCB manufacturing) reduces capital intensity and fixed costs, supporting scalability and margin stability over time. By focusing on supplier management, QA and logistics, the company can expand volumes and services without heavy factory capex, preserving operating flexibility and return on invested capital.

Recurring revenue from long-term customer relationships

PCBs are consumable production inputs; NCAB's role in quoting, procuring and managing repeat orders creates stickiness. Long-term customer relationships plus embedded engineering and logistics services support predictable, recurring revenue streams and higher customer lifetime value versus one-off sales, aiding revenue resilience across cycles.

Manageable leverage with historically solid cash generation

Balance-sheet leverage is moderate and has improved since 2021, while free cash flow historically tracked earnings, indicating decent earnings quality and cash conversion. This combination supports capital allocation and operational continuity, giving the company buffer to navigate cyclical declines without immediate solvency stress.

Negative Factors

Volatile and weakening revenue trend

Revenue volatility and recent declines indicate the business is exposed to end-market cyclicality and customer demand swings. Inconsistent top-line performance reduces forecasting reliability, undermines scale benefits and makes sustaining investment in supplier capacity, quality programs and commercial initiatives more difficult over a multi-quarter to multi-year horizon.

Margin compression, notably weaker gross margin in 2025

Sustained gross and operating margin deterioration erodes pricing power and cash generation. Weaker 2025 gross margin suggests cost or pricing pressures (supplier costs, mix, or competitive pricing). Margin compression limits reinvestment capacity, increases sensitivity to volume declines, and raises the risk that profitability won't recover quickly when demand normalizes.

Deteriorating free cash flow growth and rising debt trend

Negative free cash flow growth reduces financial flexibility and increases reliance on external financing for growth or working capital. Combined with a multi-year trend of rising debt, this raises refinancing and covenant risk if margins remain pressured. Weaker cash conversion constrains strategic investments and shareholder returns over the medium term.

NCAB Group AB Business Overview & Revenue Model

Company Description

NCAB Group AB (publ) manufactures and sells printed circuit boards (PCBs) worldwide. The company offers multilayer, high-density interconnect, radio frequency, insulated metal base, flexible, rigid-flex, semi-flex, and double sided PCBs. The company serves aerospace and defense, automotive, datacom, industrial, medical, power and energy, railway, safety-critical, and telecom industries. NCAB Group AB (publ) was founded in 1993 and is headquartered in Bromma, Sweden.

How the Company Makes Money

NCAB generates revenue primarily through the sale of printed circuit boards to various sectors, including telecommunications, automotive, industrial electronics, and medical technology. The company employs a business model focused on long-term partnerships with customers, allowing it to secure repeat orders and foster loyalty. Key revenue streams include direct sales of PCBs, engineering services, and prototyping. Additionally, NCAB benefits from strategic partnerships with manufacturers in low-cost regions, enabling cost-efficient production while maintaining quality standards. The company's emphasis on quick delivery and customized solutions also helps to attract and retain clients, contributing significantly to its earnings.

NCAB Group AB Financial Statement Overview

Summary

Financials remain fundamentally profitable with manageable leverage and generally decent cash conversion, but recent performance has softened: volatile revenue with declines in 2023–2024, margin compression (notably weaker gross margin in 2025), and negative free cash flow growth in 2024–2025.

Income Statement

Revenue has been volatile: strong growth in 2021–2022, followed by declines in 2023–2024 and a modest rebound in 2025. Profitability has also weakened over time, with operating and net margins stepping down versus 2022–2023 levels, and 2025 showing notably low gross margin versus prior years. Overall, the company remains profitable, but the margin compression and uneven growth trajectory reduce the quality of earnings.

Balance Sheet

Leverage looks manageable: debt-to-equity has improved from 2021 and has generally stayed below 1.0 in recent years, supported by a steady equity base and growing asset base. Returns on equity were strong in 2021–2023 but have cooled in 2024, consistent with softer profitability. Key risk is that debt has trended higher since 2020, so continued margin pressure could limit balance-sheet flexibility.

Cash Flow

Cash generation is generally solid, with free cash flow closely matching net income across most years, indicating decent earnings quality. However, cash flow coverage of profits has been inconsistent (very weak in 2021, strong in 2022–2023, then lower again in 2024–2025), and free cash flow growth turned negative in 2024–2025. The business is still producing healthy free cash flow, but the recent softening is a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.74B	3.61B	4.09B	4.46B	3.22B
Gross Profit	326.40M	1.33B	1.46B	1.41B	974.09M
EBITDA	446.10M	499.60M	692.48M	655.98M	442.63M
Net Income	206.00M	254.90M	403.74M	416.96M	284.92M
Balance Sheet
Total Assets	3.52B	3.39B	3.22B	3.04B	2.66B
Cash, Cash Equivalents and Short-Term Investments	333.80M	310.60M	478.63M	357.84M	136.71M
Total Debt	1.19B	1.08B	1.07B	923.49M	871.18M
Total Liabilities	2.08B	1.94B	1.89B	1.85B	1.89B
Stockholders Equity	1.44B	1.45B	1.34B	1.20B	773.43M
Cash Flow
Free Cash Flow	283.50M	349.20M	647.75M	525.34M	43.53M
Operating Cash Flow	286.90M	354.20M	700.43M	568.09M	48.28M
Investing Cash Flow	-271.90M	-281.70M	-490.75M	-218.37M	-575.92M
Financing Cash Flow	52.30M	-269.10M	-78.22M	-140.81M	200.75M

NCAB Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NCAB, the sentiment is Positive. The current price of 45.86 is below the 20-day moving average (MA) of 48.47, below the 50-day MA of 47.89, and below the 200-day MA of 50.11, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 81.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NCAB.

NCAB Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HANZA	65 Neutral	kr9.82B	28.90	―	0.65%	18.96%	48.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCAB	57 Neutral	kr10.26B	49.78	―	―	0.26%	-30.60%
NOTE	53 Neutral	kr5.62B	19.95	17.21%	3.91%	-2.98%	2.44%

NCAB Group AB Corporate Events

NCAB Group Ends 2025 With Strong Q4 Momentum Despite Weaker Full-Year Margins

NCAB Group reported a strong fourth quarter of 2025 with net sales up 9% to SEK 901.9 million and order intake up 20%, driving an improved EBITA margin of 10.9% despite negative currency effects and ongoing investments in a new IT platform. Profit after tax rose to SEK 52.7 million and earnings per share increased, signalling a recovery in profitability late in the year.

For the full year 2025, net sales grew 4% to SEK 3.74 billion but EBITA declined 11% and margins narrowed, weighed down by adverse exchange rates, IT platform costs and lower profitability compared with 2024. NCAB completed the acquisition of Swedish PCB company Multi-Teknik Mönsterkort AB and the board proposed reinstating a dividend of SEK 1.10 per share, underscoring confidence in cash generation and the group’s longer-term growth prospects despite softer full-year earnings and reduced returns on equity and capital employed.

The most recent analyst rating on (SE:NCAB) stock is a Hold with a SEK48.00 price target. To see the full list of analyst forecasts on NCAB Group AB stock, see the SE:NCAB Stock Forecast page.

NCAB Group Schedules Webcast for 2025 Annual Accounts and Q4 Report

NCAB Group will publish its annual accounts and fourth-quarter report for 2025 on Friday, 13 February 2026 at 07:30 CET, and will host a webcasted telephone conference at 10:00 CET the same day, led by CEO Peter Kruk and CFO Timothy Benjamin, followed by a Q&A session. The presentation, held in English and accessible online or by phone, will be accompanied by slide material released ahead of the call and a recorded version made available afterward on the company’s website, underscoring NCAB’s efforts to maintain transparency and active dialogue with investors and other stakeholders around its financial performance and strategic development.

The most recent analyst rating on (SE:NCAB) stock is a Hold with a SEK50.00 price target. To see the full list of analyst forecasts on NCAB Group AB stock, see the SE:NCAB Stock Forecast page.

NCAB Group Completes SEK 141 Million Acquisition of Swedish PCB Firm Multi-Teknik

NCAB Group AB has completed the acquisition of Swedish PCB company Multi-Teknik Mönsterkort AB, previously announced in November, in a deal valued at SEK 141 million on an enterprise value basis. Multi-Teknik generated net sales of about SEK 110 million and EBITA of SEK 19 million in its 2024/2025 fiscal year, and NCAB expects the transaction to boost its earnings in 2026, driven by synergies in supplier relationships, payment terms and logistics that strengthen its market position in the Nordic PCB segment.

The most recent analyst rating on (SE:NCAB) stock is a Hold with a SEK55.00 price target. To see the full list of analyst forecasts on NCAB Group AB stock, see the SE:NCAB Stock Forecast page.