NOTE AB (NOTE) AI Stock Analysis

• Market Cap: kr5.53B
• Dividend Yield: 3.61%
• Average Volume (3M): 51.78K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.42
• Revenue Growth: -8.71%
• EPS Growth: -9.38%
• Country: SE
• Employees: 1,450
• Sector: Technology
• Sector Strength: 92
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.56
• Shares Outstanding: 28,983,600
• 10 Day Avg. Volume: 33,703
• 30 Day Avg. Volume: 51,778
• PEG Ratio: -0.79
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 8.61
• 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: kr169.16
• Price Target Upside: -11.76% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: kr213.00 ▲(11.11% Upside)

NOTE AB's overall stock score is driven by its solid financial performance, particularly in equity and profitability metrics, despite challenges in revenue growth and cash flow. The technical analysis supports a positive trend, while the valuation indicates a fair market price with a reasonable dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

NOTE AB Business Overview & Revenue Model

Company Description

NOTE AB (NOTE) is a prominent player in the electronics manufacturing services (EMS) sector, specializing in high-quality production and assembly of electronic components and systems. The company caters to a diverse range of industries including industrial, telecommunications, automotive, and medical technology, providing customers with tailored solutions that encompass everything from initial design to final production.

How the Company Makes Money

NOTE AB generates revenue primarily through its comprehensive suite of electronics manufacturing services. The company earns money by offering manufacturing and assembly services for electronic products, which includes printed circuit board assembly (PCBA), system assembly, and box build services. NOTE collaborates with its clients from the design phase all the way to production, ensuring a seamless process that enhances efficiency and reduces time to market. The company benefits from strategic partnerships and long-term contracts with clients across various sectors, which provide a steady stream of income. Additionally, NOTE AB's focus on quality and innovation helps to maintain strong relationships with existing customers while attracting new business, thereby contributing significantly to its revenue growth.

NOTE AB Financial Statement Overview

Summary

NOTE AB showcases solid financial health with strong cash flow performance and stable profitability metrics. The company’s strategic management of leverage and effective use of equity position it well for sustained growth, though recent revenue declines highlight the need for strategic focus on market expansion and competitive positioning.

Income Statement

NOTE AB has demonstrated a consistent revenue growth trajectory with a strong gross profit margin of 13.54% TTM, although this is a slight decline from previous periods. The net profit margin is solid at 6.47% TTM, indicating efficient cost management. However, there is a slight decrease in revenue compared to the previous year, suggesting a need for strategic adjustments to maintain growth momentum.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.39 TTM, indicating a moderate level of leverage. The return on equity stands at 15.14% TTM, reflecting effective utilization of shareholder funds. The equity ratio of 49.89% TTM suggests a strong equity base, providing stability amidst market fluctuations.

Cash Flow

NOTE AB exhibits robust cash flow management with significant growth in free cash flow, up 31.48% from the previous year. The operating cash flow to net income ratio is strong at 2.79 TTM, indicating excellent cash generation relative to profitability, while the free cash flow to net income ratio at 2.61 underscores efficient capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.82B	3.90B	4.24B	3.69B	2.64B	1.87B
Gross Profit	513.00M	518.99M	513.79M	473.17M	353.65M	224.69M
EBITDA	478.00M	474.00M	542.00M	415.71M	309.51M	200.08M
Net Income	257.00M	248.03M	319.96M	254.24M	194.06M	115.66M
Balance Sheet
Total Assets	3.12B	3.21B	3.22B	2.77B	2.08B	1.11B
Cash, Cash Equivalents and Short-Term Investments	372.00M	411.18M	169.84M	87.66M	99.17M	67.74M
Total Debt	617.00M	630.13M	753.33M	553.00M	468.98M	153.02M
Total Liabilities	1.59B	1.57B	1.82B	1.67B	1.27B	541.61M
Stockholders Equity	1.53B	1.64B	1.40B	1.10B	800.26M	567.63M
Cash Flow
Free Cash Flow	627.00M	495.19M	246.88M	2.67M	-61.77M	171.74M
Operating Cash Flow	627.00M	601.59M	341.84M	49.79M	-33.13M	188.70M
Investing Cash Flow	-169.00M	-137.56M	-243.64M	-80.96M	-108.79M	-16.96M
Financing Cash Flow	-344.00M	-235.71M	-11.84M	14.50M	168.22M	-171.86M

NOTE AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 191.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NOTE, the sentiment is Positive. The current price of 191.7 is above the 20-day moving average (MA) of 189.34, above the 50-day MA of 175.00, and above the 200-day MA of 154.40, indicating a bullish trend. The MACD of 4.38 indicates Positive momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 28.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NOTE.

NOTE AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPEN	75 Outperform	kr3.70B	26.49	9.07%	1.07%	-9.14%	-29.28%
NOTE	73 Outperform	kr5.53B	21.20	16.64%	3.61%	-8.71%	-9.38%
HTRO	61 Neutral	kr4.66B	13.01	9.42%	―	23.20%	-31.25%
Sector *	55 Neutral	$292.10M	11.36	-16.41%	2.78%	10.30%	-45.76%

NOTE AB Corporate Events

NOTE CEO Sells Shares, Maintains Major Stake

NOTE’s CEO, Johannes Lind-Widestam, has sold 12,000 shares worth SEK 2.3 million to cover tax obligations, yet he remains a major shareholder with 308,150 shares and 216,250 warrants in the company. This transaction highlights the CEO’s continued significant stake in NOTE, underscoring stability in leadership and potential investor confidence in the company’s future.

NOTE AB Reports Stable Q2 2025 Financials and Strategic Partnerships

NOTE AB’s Q2 2025 interim report highlights stable financial performance with an operating profit of SEK 101 million and a profit after tax of SEK 76 million. The company has maintained a strong operating margin and cash flow, despite a slight decline in sales. Significant developments include a new exclusive production partnership with Swedish telecom company Waystream and an expanded order from a customer in the Security & Defence segment, indicating NOTE’s strategic growth and enhanced market positioning.

NOTE AB to Present Q2 2025 Interim Report

NOTE AB will release its Interim Report for the second quarter of 2025 on July 14th, followed by a teleconference for analysts, media, and investors. This event, led by CEO Johannes Lind-Widestam, aims to provide insights into the company’s performance and future outlook, potentially impacting its market positioning and stakeholder engagement.

NOTE AB Reduces Share Capital Following AGM Decision

NOTE AB has announced a reduction in its share capital following the annual general meeting’s decision to cancel own shares, resulting in a new total of 28,483,600 shares and votes. This strategic move may impact the company’s financial structure and shareholder value, reflecting its ongoing efforts to optimize capital management and enhance market positioning.

NOTE AB Reduces Share Capital Through Share Cancellation

NOTE AB has reduced its number of shares and votes following a resolution passed at the Annual General Meeting to cancel its own shares. This reduction, now registered with the Swedish Companies Registration Office and Euroclear Sweden AB, results in a total of 28,483,600 shares and votes, with no shares held by the company itself. This move could potentially streamline the company’s operations and impact its market positioning by consolidating its share structure.