NOTE AB (NOTE) AI Stock Analysis

• Market Cap: kr5.21B
• Dividend Yield: 37.66%
• Average Volume (3M): 60.43K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.43
• Revenue Growth: -9.37%
• EPS Growth: -15.84%
• Country: SE
• Employees: 1,450
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.47
• Shares Outstanding: 28,983,600
• 10 Day Avg. Volume: 39,450
• 30 Day Avg. Volume: 60,432
• PEG Ratio: 0.70
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.94K
• 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: kr160.05
• Price Target Upside: -9.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: kr200.00 ▲(13.12%Upside)

NOTE AB's overall stock score reflects its strong financial health, underpinned by excellent cash flow management and stable profitability. While the technical analysis suggests a positive trend, caution is advised due to overbought signals. The valuation presents a mixed picture, with a high P/E ratio contrasted by an appealing but possibly unsustainable dividend yield. The score is primarily driven by financial performance, which is the strongest component.

NOTE AB Business Overview & Revenue Model

Company Description

NOTE AB (publ), together with its subsidiaries, provides electronics manufacturing services in Sweden, Finland, the United Kingdom, Estonia, China, and internationally. The company offers advanced production technology services in close collaboration with customers, such as component selection, developing test equipment, prototyping, and serial production, as well as after-sales services. It also produces PCBAs, sub-assemblies, and box build products. The company primarily serves the medtech, greentech, industrial, and communication industries. NOTE AB (publ) was incorporated in 1999 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

NOTE AB generates revenue primarily through its electronics manufacturing services, which include the design, assembly, and testing of electronic components and systems for its clients. The company earns money by providing these tailored solutions on a contract basis, charging for the manufacturing services, materials, and any additional services like design and logistics support. NOTE AB's key revenue streams are derived from long-term contracts with clients across diverse sectors, ensuring a steady flow of income. Strategic partnerships with suppliers and customers also play a crucial role in optimizing costs and expanding market reach, thereby enhancing profitability.

NOTE AB Financial Statement Overview

Summary

NOTE AB demonstrates solid financial health with a strong cash flow and stable profitability metrics. The company effectively manages its leverage and uses equity well, although recent revenue declines indicate a need for strategic market expansion.

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	3.85B	3.90B	4.24B	3.69B	2.64B	1.87B
Gross Profit	521.00M	518.99M	513.79M	473.17M	353.65M	224.69M
EBITDA	475.00M	474.00M	542.00M	415.71M	309.51M	200.08M
Net Income	249.00M	248.03M	319.96M	254.24M	194.06M	115.66M
Balance Sheet
Total Assets	3.30B	3.21B	3.22B	2.77B	2.08B	1.11B
Cash, Cash Equivalents and Short-Term Investments	531.00M	411.18M	169.84M	87.66M	99.17M	67.74M
Total Debt	634.00M	630.13M	753.33M	553.00M	468.98M	153.02M
Total Liabilities	1.65B	1.57B	1.82B	1.67B	1.27B	541.61M
Stockholders Equity	1.65B	1.64B	1.40B	1.10B	800.26M	567.63M
Cash Flow
Free Cash Flow	651.00M	495.19M	246.88M	2.67M	-61.77M	171.74M
Operating Cash Flow	695.00M	601.59M	341.84M	49.79M	-33.13M	188.70M
Investing Cash Flow	-158.00M	-137.56M	-243.64M	-80.96M	-108.79M	-16.96M
Financing Cash Flow	-275.00M	-235.71M	-11.84M	14.50M	168.22M	-171.86M

NOTE AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 176.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 176.8 is above the 20-day moving average (MA) of 171.33, above the 50-day MA of 164.27, and above the 200-day MA of 147.09, indicating a bullish trend. The MACD of 4.55 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 62.58 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
NOTE	74 Outperform	kr5.21B	20.69	15.49%	37.66%	-9.37%	-15.84%
Sector *	57 Neutral	$935.42M	14.77	-16.47%	9.74%	10.76%	-36.64%
0GT8		kr3.65B	23.86	10.90%	10.52%	―	―
02H0		€395.99M	12.20	9.71%	―	―	―

NOTE AB Corporate Events

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.