NOTE AB (NOTE) AI Stock Analysis

• Market Cap: kr4.73B
• Dividend Yield: 3.91%
• Average Volume (3M): 64.70K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.46
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: kr174.00 ▼(-3.55% Downside)

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

Integrated EMS service offering

NOTE's full-lifecycle EMS model—engineering/industrialization through sourcing, manufacturing, testing and after-market logistics—creates durable customer stickiness and multiple revenue streams. This reduces dependence on single product cycles and supports recurring B2B contracts and steady service revenue.

Sustained operating profitability

Consistent mid-single-digit net margins and ~9–10% EBIT margins indicate structural operating efficiency in NOTE's manufacturing model. Margins provide a cushion against cyclical top-line swings, enabling reinvestment in operations and supporting cash generation even during moderate demand softness.

Efficient capital returns

ROE in the mid-teens to low twenties signals efficient use of shareholder capital over time. A consistent equity base alongside decent returns suggests management can generate acceptable returns on investments, supporting long-term sustainability and potential for steady stakeholder distributions.

Negative Factors

Top-line deterioration

An 18% revenue decline in 2025 after revenue turned negative in 2024 represents a meaningful structural setback. Sustained top-line weakness can erode scale economies, pressure fixed-cost absorption, reduce bargaining leverage with suppliers, and make margin maintenance harder without new order recovery.

Rising leverage

A notable increase in leverage reduces financial flexibility when revenue is contracting. Higher debt levels raise interest and refinancing risk, constrain capital allocation for growth or capex, and increase downside vulnerability if cash generation deteriorates further or credit markets tighten.

Volatile cash conversion

A collapse to zero free cash flow after prior strength points to inconsistent cash conversion and working-capital sensitivity. Persistent FCF volatility weakens the firm's ability to invest, service debt, or sustain distributions, elevating execution and liquidity risk during slower demand periods.

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 generates revenue primarily through the sale of its digital printing services and related products. The company operates on a B2B model, servicing a diverse clientele that includes advertising agencies, retail brands, and corporate clients. Key revenue streams include direct sales of printed materials, design fees for custom projects, and subscription-based services for ongoing marketing support. Additionally, NOTE has established strategic partnerships with technology providers and advertising firms, which enhance its service offerings and create cross-selling opportunities, further contributing to its earnings.

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: Negative
• Last Price: 180.40
• 50DMA: Negative
• 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:NOTE, the sentiment is Negative. The current price of 180.4 is above the 20-day moving average (MA) of 171.62, above the 50-day MA of 175.32, and above the 200-day MA of 177.98, indicating a bearish trend. The MACD of -3.09 indicates Positive momentum. The RSI at 37.54 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NOTE.

NOTE AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HANZA	69 Neutral	kr6.39B	31.31	―	0.65%	18.96%	48.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCAB	61 Neutral	kr8.60B	44.13	―	―	0.26%	-30.60%
NOTE	53 Neutral	kr4.73B	16.80	17.21%	3.91%	-2.98%	2.44%
CTEK	48 Neutral	kr869.11M	-25.50	-4.53%	―	3.06%	-795.86%

NOTE AB Corporate Events

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.

NOTE AB Expands Share Capital to Bolster Market Position

NOTE AB has increased its number of shares and votes to 28,548,600 following a share issue to the sellers of Kasadon Group, as resolved by the board of directors. This development is expected to strengthen NOTE’s market position and enhance its operational capabilities, reflecting the company’s strategic focus on expanding its business partnerships and customer base.

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.