NOTE AB (NOTE) AI Stock Analysis

• Market Cap: kr4.59B
• Dividend Yield: 4.28%
• Average Volume (3M): 80.57K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.45
• Revenue Growth: -9.37%
• EPS Growth: -15.84%
• Country: SE
• Employees: 1,450
• Sector: Technology
• Sector Strength: 66
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 8.68
• Shares Outstanding: 28,983,600
• 10 Day Avg. Volume: 67,877
• 30 Day Avg. Volume: 80,569
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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

NOTE AB shows strong financial performance with effective cash flow management and profitability metrics. However, recent revenue declines and bearish technical indicators suggest caution. The stock's valuation, with a reasonable P/E ratio and attractive dividend yield, supports a stable outlook but highlights the importance of strategic market positioning for future growth.

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 presents a strong financial position with impressive profitability and cash flow metrics, despite a slight decline in revenue growth. Its balance sheet remains robust, with a well-managed capital structure. Continued focus on maintaining growth and managing leverage will be key to sustaining financial health.

Income Statement

NOTE AB has demonstrated a solid financial performance over the years. The gross profit margin for 2023 was approximately 12.1%, showing efficiency in cost management. The net profit margin improved to around 7.5% in 2023, indicating strong profitability. The revenue growth rate was 15.1% from 2021 to 2022, although it slightly decreased by 8.1% from 2022 to 2023, suggesting potential challenges in sustaining growth. The EBIT margin increased to 9.9% in 2023, reflecting effective operational management.

Balance Sheet

The company's balance sheet portrays a healthy financial standing. The debt-to-equity ratio was approximately 0.54 in 2023, indicating a balanced leverage position. Return on equity was high at 23.0% in 2023, showcasing efficient use of equity to generate profits. The equity ratio stood at 43.3%, suggesting a solid capital structure with a strong equity base. However, the increase in total debt could pose a risk if not managed properly.

Cash Flow

NOTE AB has shown robust cash flow management. Free cash flow grew significantly from 2021 to 2022. The operating cash flow to net income ratio improved to 1.07 in 2023, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio also stood at 0.77, exhibiting effective cash conversion. The substantial increase in operating cash flow from prior years underlines a strong cash flow position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.90B	4.24B	3.69B	2.64B	1.87B
	Gross Profit
519.00M	513.79M	473.17M	353.65M	224.69M
	EBIT
351.92M	420.42M	344.68M	250.52M	149.14M
	EBITDA
474.00M	542.00M	415.71M	309.51M	200.08M
	Net Income Common Stockholders
248.00M	319.96M	254.24M	194.06M	115.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
411.18M	169.84M	87.66M	99.17M	67.74M
	Total Assets
3.21B	3.22B	2.77B	2.08B	1.11B
	Total Debt
630.00M	753.33M	553.00M	468.98M	153.02M
	Net Debt
219.00M	583.49M	465.35M	369.80M	85.28M
	Total Liabilities
1.57B	1.82B	1.67B	1.27B	541.61M
	Stockholders Equity
1.64B	1.40B	1.10B	800.26M	567.63M
Cash Flow		Free Cash Flow
602.00M	246.88M	2.67M	-61.77M	171.74M
	Operating Cash Flow
602.00M	341.84M	49.79M	-33.13M	188.70M
	Investing Cash Flow
-137.00M	-243.64M	-80.96M	-108.79M	-16.96M
	Financing Cash Flow
-236.00M	-11.84M	14.50M	168.22M	-171.86M

NOTE AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 159.90
• 50DMA: Negative
• 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 Negative. The current price of 159.9 is below the 20-day moving average (MA) of 163.34, below the 50-day MA of 162.92, and above the 200-day MA of 139.41, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 36.21 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
NOTE	71 Outperform	kr4.59B	18.24	15.49%	4.28%	-9.37%	-15.84%
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%

NOTE AB Corporate Events

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.