Netel Holding AB (NETEL) AI Stock Analysis

• Market Cap: kr211.27M
• Dividend Yield: N/A
• Average Volume (3M): 302.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -13.07%
• EPS Growth: -372.35%
• Country: SE
• Employees: 837
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): -1.40
• Shares Outstanding: 48,511,870
• 10 Day Avg. Volume: 285,731
• 30 Day Avg. Volume: 302,611
• PEG Ratio: 0.07
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 10.92
• 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: kr5.00
• Price Target Upside: 0.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: kr4.50 ▼(-9.46% Downside)

The score is held back primarily by weak financial performance—declining revenue, negative profitability, and significant cash flow deterioration. Technicals are only modestly supportive (near-term strength but longer-term downtrend), while valuation signals remain unfavorable due to losses and the absence of dividend support.

Positive Factors

Recurring service revenue

Netel’s revenue mix includes multi‑year service and maintenance contracts that generate repeatable, lower‑volatility revenue versus one‑off build projects. This recurring stream supports steadier cash flows, customer stickiness, and higher long‑term margin visibility for infrastructure services.

Exposure to critical infrastructure

Netel serves structurally growing segments—fiber and mobile rollouts, grid upgrades and energy networks—where long‑term capex and modernization persist. Such end‑market exposure supports sustained demand for project and lifecycle services, underpinning multi‑year contract opportunities and scale benefits.

Moderate leverage on balance sheet

A debt‑to‑equity around 1.07 and reasonable equity ratio provide financial flexibility to bid on capital‑intensive projects and absorb downcycles. This moderate leverage helps preserve access to credit for working capital and growth investments while avoiding extreme solvency risk if profitability recovers.

Negative Factors

Declining revenue and negative margins

Sustained revenue declines and negative net margins signal structural competitiveness or demand issues. Persisting top‑line contraction reduces scale economics, pressures margins on fixed‑cost projects, and erodes pricing power, impairing the company’s ability to invest in capabilities or stabilize earnings long term.

Severe cash‑flow deterioration

Massive FCF deterioration and negligible operating cash conversion indicate weak liquidity and poor working capital control. For a project‑driven services firm, weak cash generation undermines ability to fund project execution, bid competitively, service debt, and sustain multi‑year contracts without external financing.

Negative shareholder returns (ROE)

A negative ROE shows the company is destroying shareholder capital rather than earning adequate returns. Over time this limits reinvestment capacity, weakens investor confidence, and constrains the balance sheet’s ability to support growth or absorb margin pressure in a competitive, tender‑driven market.

Netel Holding AB Business Overview & Revenue Model

Company Description

Netel Holding AB provides Infranet services within mobile, fixed, and power networks in Sweden, Norway, Finland, and Germany. It provides Infranet project management services for the construction and maintenance of physical telecom, broadband, and power networks. The company is involved in the planning, permit management, construction, installation, roll-out, commissioning, and integration of mobile data network systems; logistics services; designs fiber networks; upgrade of coaxial networks, preventive and corrective maintenance, and installation of communication networks; and construction and maintenance of infrastructure for district heating, water, and sewage. It serves telecom operators, owners of mobile towers, and system suppliers; network owners, network operators and tenant-owner associations; infrastructure owners; and real estate and construction companies. Netel Holding AB was founded in 2000 and is based in Stockholm, Sweden.

How the Company Makes Money

Netel Holding AB generates revenue through multiple streams primarily centered around its telecommunications infrastructure services. The company earns money by charging clients for the design, construction, and maintenance of telecom networks, including both fixed and mobile installations. Key revenue streams include contracts with telecommunications operators for network upgrades and expansions, as well as ongoing maintenance agreements. Additionally, NETEL benefits from long-term partnerships with various telecom providers, which provide steady income and opportunities for project collaborations. The company also engages in public sector projects, which further contributes to its revenue through government contracts and infrastructure development initiatives.

Netel Holding AB Financial Statement Overview

Summary

Weak fundamentals: revenue is declining (-7.17% TTM) and profitability is negative (net margin -0.99%, ROE -2.98%). Cash generation is a key concern with sharply negative free cash flow growth (-707.69%) and very low operating cash flow to net income (0.03), despite a moderately stable balance sheet (debt-to-equity 1.07, equity ratio 36.87%).

Income Statement

Netel Holding AB's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -0.99% and a revenue growth rate of -7.17%, indicating a downturn in sales and profitability. The gross profit margin remains relatively stable at 36.87%, but the EBIT and EBITDA margins have decreased compared to previous years, reflecting operational challenges. Overall, the income statement suggests a need for strategic improvements to reverse the negative trends.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 1.07 in the TTM period, indicating a balanced leverage. However, the return on equity is negative at -2.98%, reflecting the company's struggle to generate returns for shareholders. The equity ratio stands at 36.87%, suggesting a reasonable level of equity financing. While the company maintains a stable asset base, the negative ROE highlights the need for improved profitability.

Cash Flow

Netel Holding AB's cash flow statement indicates significant challenges, with a negative free cash flow growth rate of -707.69% in the TTM period. The operating cash flow to net income ratio is low at 0.03, and the free cash flow to net income ratio is 0.68, suggesting inefficiencies in converting income into cash. The negative cash flow trends highlight liquidity concerns and the need for better cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	3.28B	3.46B	3.14B	2.42B	2.30B
Gross Profit	871.00M	1.17B	1.21B	1.16B	860.00M	728.88M
EBITDA	109.00M	214.00M	241.00M	241.00M	172.00M	136.00M
Net Income	-108.00M	-47.00M	44.00M	123.00M	66.00M	76.93M
Balance Sheet
Total Assets	2.83B	2.97B	3.15B	3.12B	2.13B	1.51B
Cash, Cash Equivalents and Short-Term Investments	150.00M	261.00M	446.00M	369.00M	271.00M	89.87M
Total Debt	1.12B	1.01B	1.06B	1.09B	589.00M	390.08M
Total Liabilities	1.79B	1.87B	2.01B	2.01B	1.22B	907.69M
Stockholders Equity	1.04B	1.09B	1.13B	1.11B	912.00M	603.27M
Cash Flow
Free Cash Flow	-79.00M	59.00M	223.00M	-90.00M	91.00M	127.37M
Operating Cash Flow	-73.00M	59.00M	242.00M	-72.00M	114.00M	131.27M
Investing Cash Flow	-62.00M	-162.00M	-83.00M	-238.00M	-181.00M	-1.17M
Financing Cash Flow	33.00M	-89.00M	-67.00M	402.00M	244.00M	-132.80M

Netel Holding AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NETEL, the sentiment is Negative. The current price of 4.97 is above the 20-day moving average (MA) of 4.67, above the 50-day MA of 4.31, and below the 200-day MA of 7.87, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NETEL.

Netel Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFREA	72 Outperform	kr427.26M	19.18	―	3.51%	7.83%	―
ALCA	71 Outperform	kr585.81M	18.36	―	―	-7.91%	-33.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KEBNI.B	58 Neutral	kr446.00M	76.17	8.68%	―	9.30%	―
TRANS	55 Neutral	kr277.03M	-2,804.35	0.35%	―	10.36%	-100.68%
KJELL	52 Neutral	kr654.03M	-1.67	-42.09%	―	-4.54%	-1024.16%
NETEL	46 Neutral	kr211.27M	-1.65	―	―	-13.07%	-372.35%

Netel Holding AB Corporate Events

Netel Deepens Elvia Partnership With New Oslo Grid Contracts

Netel Holding AB has broadened its partnership with Norwegian grid company Elvia through a new four-year framework agreement covering roughly half of Oslo Municipality, marking a significant entry into a new geographic market, while simultaneously renewing a four-year framework contract for the Søndre Follo area south of Oslo. The agreements, together worth more than NOK 110 million, cover delivery, connection and upgrading of electricity distribution networks in high-activity regions, reinforcing Netel’s foothold in a strategically important area and underscoring its growth strategy of expanding into adjacent geographies within the Nordic infrastructure and power grid market.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK4.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel to Present Fourth-Quarter and Full-Year 2025 Results via Webcast and Teleconference

Netel Holding AB will publish its fourth-quarter and full-year 2025 report on Friday, 6 February, at 07:30 CET, followed by a webcast presentation at 09:00 CET where President and CEO Jeanette Reuterskiöld and CFO Fredrik Helenius will present the results. Investors and analysts will be able to follow the presentation via webcast with written questions or join a teleconference, highlighting the company’s ongoing efforts to maintain transparent communication with the market around its financial performance and operational developments.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK5.00 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel Secures New Long-Term Financing, Easing Going-Concern Concerns

Netel Holding AB has secured new long-term financing agreements with SEB, the Swedish Export Credit Corporation and Swedbank that run until 30 June 2027, replacing its previous loan arrangements and shifting the main financial covenant to a liquidity requirement. The refinancing follows one-time impairments on older projects in acquired subsidiaries that caused covenant breaches as of 30 September 2025, and the new structure is intended to restore predictability and flexibility in the company’s capital structure, remove uncertainty about its ability to continue operations, and support management’s plans to improve profitability and deliver growth from its SEK 3.8 billion order backlog and savings programmes.

The most recent analyst rating on (SE:NETEL) stock is a Sell with a SEK3.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel Secures Landmark Contract for Ludvika Logistics Center

Netel Holding AB’s subsidiary, Brogrund Mark, has secured a significant contract valued at approximately MSEK 110 for civil engineering works at a new logistics center in Ludvika. This project, the largest ever for Netel’s Infraservices division, involves comprehensive ground and civil engineering tasks, including stormwater and sewage systems installation, and is expected to be completed by early 2027. This contract underscores Netel’s competitive edge and capability to deliver high-quality infrastructure solutions, enhancing its industry positioning and operational scope.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK4.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.