NOTE AB (NOTE) AI Stock Analysis

• Market Cap: kr5.29B
• Dividend Yield: 3.91%
• Average Volume (3M): 64.70K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.48
• Revenue Growth: -2.98%
• EPS Growth: 2.44%
• Country: SE
• Employees: 1,450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.05
• Shares Outstanding: 28,548,600
• 10 Day Avg. Volume: 74,522
• 30 Day Avg. Volume: 64,699
• PEG Ratio: 1.32
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 11.37
• Revenue Forecast (FY): kr4.16B

• Rating: 53 Neutral
• Price Target: kr191.00 ▲(5.88% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is held back primarily by weakening financial performance (sharp 2025 revenue decline, rising leverage, and free-cash-flow dropping to zero) and bearish technical signals (negative MACD and price below major moving averages). Valuation is a partial offset, supported by a moderate P/E and an attractive ~4.1% dividend yield.

Positive Factors

Margin sustainability

Consistent mid-single-digit net margins and ~9–10% EBIT margins show durable operational efficiency and pricing discipline in NOTE's EMS operations. Over the next 2–6 months these margins support cash generation, cushion volume volatility, and help fund quality and service investments that retain customers.

Full-lifecycle EMS business model

NOTE's end-to-end EMS offering (industrialization, sourcing, manufacturing, testing, aftermarket) creates multiple revenue streams and sticky customer relationships. This reduces single-product exposure, increases repeatable service revenue and aftersales opportunities, strengthening structural revenue resilience.

Return on equity and balance-sheet foundation

Sustained ROE (~15–23%) and a consistent equity base indicate efficient capital deployment and an ability to generate returns from contract manufacturing assets. This financial foundation supports reinvestment in capacity and customer programs without eroding long-term competitiveness.

Negative Factors

Sharp revenue decline

A pronounced top-line contraction (negative in 2024 and -18.3% in 2025) signals weakening demand or lost orders. For an EMS provider, sustained revenue declines reduce fixed-cost absorption, pressure margins and supplier terms, and can erode strategic customer relationships if not reversed.

Rising leverage

Higher debt-to-equity (from ~0.38 to ~0.56) reduces financial flexibility during cyclical EMS downturns. Elevated leverage increases interest and covenant exposure, limiting the company's ability to fund working capital or strategic investments without taking on further refinancing or renegotiation risk.

Volatile cash generation

Free cash flow collapsing to zero in 2025 after a strong 2024 highlights uneven cash conversion. Volatile cash limits capacity to sustain dividends, invest in automation or capacity, and forces reliance on external financing for growth or working capital during downturns.

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 makes money primarily by delivering contract manufacturing and related services to its customers (B2B) under EMS arrangements. Key revenue streams typically include: (1) Manufacturing/assembly fees for producing electronic assemblies and finished products (often priced per unit, per batch, or via agreed manufacturing rates). (2) Materials and component supply as part of turnkey manufacturing—NOTE procures components and materials and bills customers for these inputs (revenue commonly includes the pass-through cost of materials plus an agreed margin/handling where applicable). (3) Engineering and industrialization services connected to bringing products into production, such as production preparation and manufacturability support; if separately billed, these generate service revenue. (4) Testing, quality assurance, and after-market services (e.g., repair, configuration, or logistics) when provided under contract. Revenue is therefore driven by customer order volumes, product mix, and the value of materials/components included in delivered products, and can be significantly influenced by supply-chain availability and component pricing. Specific named strategic partnerships, customer concentration details, or contract structures are null.

NOTE AB Financial Statement Overview

Summary

Profitability remains solid (mid-single-digit net margins and ~9–10% EBIT margins), but fundamentals have weakened: revenue turned negative in 2024 and fell sharply in 2025 (-18.3%), leverage increased (debt-to-equity up to ~0.56), and free cash flow dropped to zero in 2025 after being strong in 2024.

Income Statement

Profitability is solid and fairly steady, with net margins generally in the mid-single digits and EBIT margins around ~9–10% in recent years. However, growth has clearly rolled over: revenue turned negative in 2024 and declined sharply in 2025 (-18.3%), and net income also fell versus 2023 levels. Overall, healthy margins but weakening top-line momentum is the key overhang.

Balance Sheet

The balance sheet looks adequate with consistent equity and decent returns on equity (~15–23% over the period). That said, leverage has increased recently: debt-to-equity rose from ~0.38 (2024) to ~0.56 (2025), and total debt stepped up materially, which reduces flexibility if the revenue downturn persists.

Cash Flow

Cash generation is volatile. Operating cash flow is positive and strong in 2024–2025, but free cash flow dropped to zero in 2025 after being robust in 2024, signaling a sharp deterioration in cash available after investment needs. Earlier years also show uneven conversion (including negative operating cash flow in 2021), so cash flow consistency is the main weakness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.81B	3.90B	4.24B	3.69B	2.64B
Gross Profit	529.00M	518.99M	513.79M	473.17M	353.65M
EBITDA	504.00M	474.00M	542.00M	409.69M	309.51M
Net Income	281.00M	248.03M	319.96M	254.24M	194.06M
Balance Sheet
Total Assets	3.43B	3.21B	3.22B	2.77B	2.08B
Cash, Cash Equivalents and Short-Term Investments	293.00M	411.18M	169.84M	87.66M	99.17M
Total Debt	927.00M	630.13M	753.33M	553.00M	468.98M
Total Liabilities	1.79B	1.57B	1.82B	1.67B	1.27B
Stockholders Equity	1.65B	1.64B	1.40B	1.10B	800.26M
Cash Flow
Free Cash Flow	0.00	495.19M	246.88M	2.67M	-61.77M
Operating Cash Flow	507.00M	601.59M	341.84M	49.79M	-33.13M
Investing Cash Flow	-475.00M	-137.56M	-243.64M	-80.96M	-108.79M
Financing Cash Flow	-128.00M	-235.71M	-11.84M	14.50M	168.22M

NOTE AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 180.40
• 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 Neutral. The current price of 180.4 is below the 20-day moving average (MA) of 187.86, above the 50-day MA of 176.69, and below the 200-day MA of 180.53, indicating a neutral trend. The MACD of 3.52 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:NOTE.

NOTE AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HANZA	65 Neutral	kr9.77B	23.56	―	0.65%	18.96%	48.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCAB	57 Neutral	kr9.01B	43.38	―	―	0.26%	-30.60%
CTEK	55 Neutral	kr955.88M	33.70	3.75%	―	3.06%	-795.86%
NOTE	53 Neutral	kr5.29B	18.44	17.60%	3.91%	-2.98%	2.44%

NOTE AB Corporate Events

NOTE Joins Swedish Defence Industry Association to Bolster Secure Electronics Role

NOTE AB has joined the Swedish Security and Defence Industry Association, underscoring its long-term commitment to supplying secure, high-reliability electronics to the defence and security sector in Sweden and Europe. By entering this industry platform, NOTE aims to deepen its role in resilient defence-industrial supply chains and contribute expertise in security-classified manufacturing, total defence, supply preparedness and cybersecurity, potentially strengthening its position as a strategic supplier in a more demanding geopolitical environment.

The most recent analyst rating on (SE:NOTE) stock is a Hold with a SEK213.00 price target. To see the full list of analyst forecasts on NOTE AB stock, see the SE:NOTE Stock Forecast page.

NOTE wins SEK 135 million multi-year defence electronics order

NOTE AB has secured a SEK 135 million order from a longstanding Nordic defence customer that is a market leader in its field, underscoring the company’s role as a key electronics partner in the Security & Defence segment. The contract covers highly complex, high-reliability PCB assemblies, with production scheduled to start in 2026 and run through 2028.

Management says the renewed mandate confirms NOTE’s technical strengths and dependable delivery capabilities, and reflects rising demand for robust, high-precision electronics in defence applications. The multi-year deal supports visibility in future revenues and further entrenches NOTE’s positioning as a preferred supplier for mission-critical electronics among major industrial and defence customers.

The most recent analyst rating on (SE:NOTE) stock is a Hold with a SEK186.00 price target. To see the full list of analyst forecasts on NOTE AB stock, see the SE:NOTE Stock Forecast page.

NOTE AB Boosts Profitability and Defence Footprint as It Halts Dividend to Preserve Cash

NOTE AB reported essentially flat full-year 2025 sales at SEK 3.8 billion with currency-adjusted organic growth of 0%, but improved profitability as the adjusted operating margin rose to 10.1% from 9.3% and profit after tax increased to SEK 281 million, or SEK 9.89 per share. Despite solid earnings, cash flow after investments fell sharply to SEK 32 million from SEK 465 million, partly due to acquisition activity and property investments, leading the board to propose no dividend for 2025 in order to preserve financial flexibility amid structural changes in the EMS sector. Operationally, the group strengthened its market position through an expanded production partnership with Swedish telecom firm Waystream, a large new order in the Security & Defence segment starting in late 2025, and the acquisition of UK-based Kasdon Group, which deepens NOTE’s presence in the defence-focused UK EMS market and is financed via existing cash, credit facilities and a small share issue causing limited shareholder dilution.

The most recent analyst rating on (SE:NOTE) stock is a Hold with a SEK185.00 price target. To see the full list of analyst forecasts on NOTE AB stock, see the SE:NOTE Stock Forecast page.

NOTE to Present 2025 Year-End Report to Investors on 26 January

NOTE AB has announced that it will publish its 2025 year-end report on 26 January 2026 at 8:00 a.m. CET, followed by a presentation for analysts, media and investors at 10:00 a.m. CET in Stockholm, led by CEO and President Johannes Lind-Widestam and conducted in English. The event, which will prioritise shareholders if capacity is reached, will also be streamed live and made available as a recording on the company’s website, underscoring NOTE’s efforts to maintain transparency and engage capital markets stakeholders ahead of the release of its full-year financial results, while also reiterating its handling of participants’ personal data in line with its privacy policy.

The most recent analyst rating on (SE:NOTE) stock is a Hold with a SEK189.00 price target. To see the full list of analyst forecasts on NOTE AB stock, see the SE:NOTE Stock Forecast page.