Nordic Group Limited (MR7) AI Stock Analysis

• Market Cap: S$188.05M
• Dividend Yield: 1.84%
• Average Volume (3M): 142.57K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.69
• Revenue Growth: 13.35%
• EPS Growth: 20.00%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 106,940
• 30 Day Avg. Volume: 142,570
• PEG Ratio: 0.00
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 3.20
• P/FCF Ratio: 19.04
• 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: S$0.61
• Price Target Upside: 38.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): S$183.94M

• Rating: 73 Outperform
• Price Target: S$0.54 ▲(22.95% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong financial performance—improving profitability, sharply higher free cash flow, and significantly reduced debt—partly offset by a multi-year revenue decline. Technicals are mixed with only mild positive momentum, while valuation is supportive with a low P/E and modest yield.

Positive Factors

Free cash flow strength

Sharp 2025 cash-flow improvement (OCF 29.5M; FCF 28.5M) reflects stronger cash conversion and provides durable funding for capex, dividends, or debt paydown. Consistent FCF near net income historically supports financial flexibility and reduces reliance on external financing over cycles.

Balance-sheet repair

Material deleveraging and higher equity markedly lower financial risk and interest burden. Stronger balance sheet increases bid capacity for projects, supports liquidity through construction cycles, and gives management more strategic optionality for M&A or counter-cyclical investment.

Improving profitability

Rising gross profit and net income with stable ~10–11% margins indicate operational resilience and pricing or mix improvements. Sustainable margins help absorb revenue volatility and underwrite returns even if top-line growth is muted, supporting longer-term cash generation.

Negative Factors

Multi-year revenue decline

A three-year top-line contraction signals structural demand headwinds or loss of market share. Persistent revenue decline constrains ability to scale fixed costs, limits long-term earnings expansion, and raises the bar for management to restore sustainable organic growth.

Earnings durability risk

Profit gains amid falling revenue risk being transitory if linked to one-off cost saves or timing. Continued top-line weakness would force margin trade-offs, reduce pricing power, and could reverse recent net income gains if market conditions or contract volumes worsen.

Prior OCF timing drag

Earlier weak OCF relative to earnings highlights working-capital or project-timing volatility common in construction. Although improved in 2025, such operational cash variability can recur, stressing liquidity and constraining reinvestment or debt reduction during slower revenue periods.

Nordic Group Limited Business Overview & Revenue Model

Company Description

Nordic Group Limited, an investment holding company, provides solutions in the areas of system integration; maintenance, repair, overhaul, and trading; precision engineering; scaffolding; insulation; petrochemical and environmental engineering; and cleanroom, air, and water engineering. The company turns systems into solutions by providing flow, automation, and navigation solutions. It also offers engineering, procurement, installation, and commissioning for conversion, upgrading, and factory and infrastructure automation services, as well as after-sales support service; thermal, cryogenic, acoustic, clean room insulation, thermal spray aluminum, and passive fireproofing service; and scaffolding services, including design, erection, modification, and dismantling, as well as sells and rents tubular frame and aluminum scaffold. In addition, the company designs and builds tooling system, as well as provides turnkey production solutions; and offers pre and post commissioning cleaning, heat exchanger and tank cleaning, process plant recovery work, temporary intervention activities, turnaround work and support, decontamination service, temporary equipment support, product filtering, and support in operation of utility plants service. Further, it provides holistic suite of service in facilities engineering service, maintenance, engineering, project management and construction for air pollution control system, and water and waste treatment system. Additionally, the company manufactures aircraft component and hydraulic actuator; and integrates, assembles, trades in, imports, and exports hydraulic systems and marine components. It serves marine, oil and gas, infrastructure, construction, semiconductor, power plant and municipality, petrochemical, manufacturing, and pharmaceutical industries in Singapore, China, Malaysia, the Middles East, and the United States. The company was founded in 1998 and is headquartered in Singapore.

How the Company Makes Money

Nordic Group Limited generates revenue through multiple streams, primarily focusing on its core offerings in engineering services, manufacturing, and logistics solutions. The company earns money by charging clients for project-based engineering contracts, which include design, development, and implementation of specialized systems. Additionally, Nordic Group's manufacturing division produces custom components and parts that are sold to various industries, contributing significantly to its revenue. The logistics segment enhances earnings through supply chain management services, optimizing transportation and warehousing for clients. Key partnerships with technology providers and industry leaders further amplify revenue opportunities by enabling Nordic Group to offer comprehensive solutions and access broader markets.

Nordic Group Limited Financial Statement Overview

Summary

Fundamentals are strong overall: profits improved (net income 19.0M vs 17.5M) and cash generation surged (OCF 29.5M; FCF 28.5M). Balance-sheet risk decreased materially with debt down to 43.7M and equity higher at 141.5M. The main concern is weakening demand signal from revenue declining for three straight years (down ~8.2% in 2025).

Income Statement

Profitability is solid and improving versus earlier years: gross profit rose to 40.5M in 2025 (vs 36.7M in 2024) and net income increased to 19.0M (vs 17.5M). Margins (where provided) were healthy in 2023–2024 with net margin around ~10–11% and stable EBIT/EBITDA margins. The key weakness is top-line momentum: revenue declined in each of 2023–2025 (down ~8.2% in 2025), which could pressure earnings durability if the downturn persists.

Balance Sheet

Leverage has improved meaningfully: total debt fell from 102.1M (2023) to 65.5M (2024) and 43.7M (2025), while equity rose to 141.5M in 2025 (from 129.8M in 2024). This strengthens balance-sheet flexibility and lowers financial risk. A watch item is that total assets edged down in 2025 versus 2024, and return on equity (provided through 2024) was good but not accelerating (~13–14% in 2023–2024).

Cash Flow

Cash generation strengthened sharply in 2025: operating cash flow increased to 29.5M (from 16.0M in 2024) and free cash flow rose to 28.5M (from 14.0M), with positive free-cash-flow growth in 2024–2025. Historically, conversion has been generally strong (free cash flow close to net income in 2021–2024), though operating cash flow was comparatively light in 2023–2024 versus earnings, indicating some prior working-capital or timing drag that improved in 2025.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	167.06M	153.28M	158.39M	160.64M	162.76M	103.06M
Gross Profit	37.86M	40.47M	36.67M	36.41M	45.75M	27.51M
EBITDA	26.58M	29.62M	29.88M	28.31M	31.77M	19.06M
Net Income	17.26M	19.02M	17.51M	15.98M	20.67M	13.88M
Balance Sheet
Total Assets	225.58M	228.96M	234.81M	265.58M	237.81M	192.27M
Cash, Cash Equivalents and Short-Term Investments	32.37M	41.81M	43.44M	73.74M	55.91M	75.34M
Total Debt	45.52M	43.67M	65.53M	102.12M	77.98M	63.65M
Total Liabilities	92.15M	87.42M	105.00M	148.11M	127.79M	94.63M
Stockholders Equity	133.44M	141.55M	129.80M	117.47M	110.02M	97.64M
Cash Flow
Free Cash Flow	25.05M	28.48M	13.98M	10.18M	34.12M	9.20M
Operating Cash Flow	26.86M	29.51M	15.98M	11.29M	35.00M	9.92M
Investing Cash Flow	-755.00K	510.00K	-3.09M	-5.20M	-52.54M	-575.00K
Financing Cash Flow	-50.86M	-30.30M	-46.65M	14.96M	-4.46M	8.07M

Nordic Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.44
• 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 SG:MR7, the sentiment is Neutral. The current price of 0.44 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.47, and above the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:MR7.

Nordic Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BQM	74 Outperform	S$236.88M	11.25	6.08%	2.24%	14.25%	5.61%
MR7	73 Outperform	S$188.05M	10.38	13.44%	1.84%	13.35%	20.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
I07	60 Neutral	S$176.83M	27.67	3.04%	1.25%	18.31%	45.16%
C06	51 Neutral	S$57.09M	75.00	1.01%	2.50%	20.81%	―

Nordic Group Limited Corporate Events

Nordic Group Secures S$70.3 Million in New Contracts

Nordic Group Limited has secured contracts worth approximately S$70.3 million across multiple divisions, including system integration, precision engineering, and scaffolding. These contracts involve new and repeat customers from various industries and are expected to be completed between 2025 and 2028. Despite the significant contract value, these deals are not anticipated to materially impact the company’s financial metrics for the current year.

The most recent analyst rating on (SG:MR7) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on Nordic Group Limited stock, see the SG:MR7 Stock Forecast page.