OM:NOTE

Stock Analysis Report

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Executive Summary

NOTE AB (publ) operates as a manufacturing and logistics partner for producing electronics-based products primarily in Sweden, Finland, the United Kingdom, Estonia, and China.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has NOTE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NOTE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

NOTE

6.5%

SE Electronic

5.2%

SE Market


1 Year Return

81.0%

NOTE

18.0%

SE Electronic

9.1%

SE Market

Return vs Industry: NOTE exceeded the Swedish Electronic industry which returned 17.9% over the past year.

Return vs Market: NOTE exceeded the Swedish Market which returned 8.7% over the past year.


Shareholder returns

NOTEIndustryMarket
7 Day-2.8%6.5%5.2%
30 Day20.9%5.7%5.6%
90 Day27.4%2.7%-1.4%
1 Year81.0%81.0%18.2%18.0%10.7%9.1%
3 Year164.9%148.2%33.3%28.9%11.9%-3.1%
5 Year453.3%373.9%71.9%61.2%30.9%5.4%

Price Volatility Vs. Market

How volatile is NOTE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NOTE undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOTE (SEK47.15) is trading below our estimate of fair value (SEK620.4)

Significantly Below Fair Value: NOTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NOTE is good value based on its PE Ratio (14.4x) compared to the Electronic industry average (23.1x).

PE vs Market: NOTE is good value based on its PE Ratio (14.4x) compared to the Swedish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NOTE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NOTE is good value based on its PB Ratio (2.7x) compared to the SE Electronic industry average (2.9x).


Next Steps

Future Growth

How is NOTE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.8%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NOTE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NOTE performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOTE has high quality earnings.

Growing Profit Margin: NOTE's current net profit margins (5.2%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: NOTE's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: NOTE's earnings growth over the past year (30.4%) exceeds its 5-year average (21.3% per year).

Earnings vs Industry: NOTE earnings growth over the past year (30.4%) exceeded the Electronic industry -6.6%.


Return on Equity

High ROE: NOTE's Return on Equity (18.7%) is considered low.


Next Steps

Financial Health

How is NOTE's financial position?


Financial Position Analysis

Short Term Liabilities: NOTE's short term assets (SEK945.0M) exceed its short term liabilities (SEK662.0M).

Long Term Liabilities: NOTE's short term assets (SEK945.0M) exceed its long term liabilities (SEK66.0M).


Debt to Equity History and Analysis

Debt Level: NOTE's debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: NOTE's debt to equity ratio has increased from 31.2% to 37.2% over the past 5 years.

Debt Coverage: NOTE's debt is well covered by operating cash flow (85.3%).

Interest Coverage: NOTE's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Next Steps

Dividend

What is NOTE's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOTE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NOTE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOTE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOTE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NOTE is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOTE's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Johannes Lind-Widestam (47yo)

1.67yrs

Tenure

kr4,155,000

Compensation

Mr. Johannes Lind-Widestam is Chief Executive Officer and President of NOTE AB (publ) since September 2018. Mr. Lind-Widestam served as the Chief Executive Officer and President at Elos Medtech AB (publ) s ...


CEO Compensation Analysis

Compensation vs Market: Johannes's total compensation ($USD440.88K) is above average for companies of similar size in the Swedish market ($USD218.10K).

Compensation vs Earnings: Johannes's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Johannes Lind-Widestam
CEO & President1.67yrskr4.16m0.51% SEK6.8m
Henrik Nygren
Chief Financial Officer14.33yrskr412.00k0.72% SEK9.6m
Frida Frykstrand
Corporate Accounting Manager4.17yrsno datano data
Fredrik Schultz
Chief Sales Officer4.67yrsno data0.54% SEK7.2m
Gunilla Olsson
Head of Group Staff Accounting & Financeno datano datano data
David Krantz
Chief Procurement Officer2.75yrsno data0.36% SEK4.8m
Mikko Sajaniemi
President of NOTE Hyvinkää Oyno datano datano data
Jacek Malecki
President of NOTE Components Gdansk Sp.z.o.o.no datano datano data
Kerstin Åkerberg
President of NOTE Tauragé UABno datano datano data
Peter Johansson
President of NOTE Nyköping-Skänninge ABno datano datano data

4.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: NOTE's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anna Belfrage
Independent Director1.33yrskr184.00kno data
Kjell-Åke Andersson
Independent Director10.33yrskr141.00k3.36% SEK44.9m
Claes Mellgren
Independent Director1.33yrskr131.00k2.59% SEK34.7m
Christoffer Skogh
Employee Representative Director2.92yrsno data0.00036% SEK4.8k
Kaj Falkenlund
Independent Director1.33yrskr131.00k0.0060% SEK80.4k
Johan Hagberg
Chairman1.83yrskr303.00k25.4% SEK339.8m
Bahare Hederstierna
Independent Director5.33yrskr137.00k0.018% SEK240.0k
Johan Lantz
Deputy Director2.92yrsno datano data
Charlotte Stjerngren
Independent Director1.33yrskr154.00k0.029% SEK385.9k

1.8yrs

Average Tenure

48yo

Average Age

Experienced Board: NOTE's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NOTE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NOTE AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NOTE AB (publ)
  • Ticker: NOTE
  • Exchange: OM
  • Founded: 1999
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: kr1.338b
  • Shares outstanding: 28.37m
  • Website: https://www.note.eu

Number of Employees


Location

  • NOTE AB (publ)
  • Box 1285
  • Kista
  • 164 29
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOTEOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKJun 2004
0GSSLSE (London Stock Exchange)YesClass A SharesGBSEKJun 2004
NOTESBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBSEKJun 2004

Biography

NOTE AB (publ) operates as a manufacturing and logistics partner for producing electronics-based products primarily in Sweden, Finland, the United Kingdom, Estonia, and China. The company provides advanced production technology services in close collaboration with customers, such as component selection, developing test equipment, prototyping, and batch production, as well as after-sales services. It also produces PCBAs, sub-assemblies, and box build products. The company primarily serves the medtech, defence, manufacturing, communication, and consumer electronics industries. NOTE AB (publ) was founded in 1999 and is headquartered in Kista, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 21:28
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.