NOTE (OM:NOTE) - Share price, News & Analysis

NOTE fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

NOTE Stock Overview

NOTE AB (publ), together with its subsidiaries, provides electronics manufacturing services in Sweden, Finland, the United Kingdom, Estonia, China, and internationally.

Rewards

Price-To-Earnings ratio (24.2x) is below the Electronic industry average (25.1x)

Earnings grew by 67.9% over the past year

Risk Analysis

High level of non-cash earnings

NOTE Competitors

Hanza

OM:HANZA

kr1.9b

NCAB Group

OM:NCAB

kr11.0b

Pricer

OM:PRIC B

kr2.0b

Mycronic

OM:MYCR

kr13.7b

Price History & Performance

Summary of all time highs, changes and price drops for NOTE
Historical stock prices
Current Share Price	kr193.30
52 Week High	kr245.50
52 Week Low	kr112.40
Beta	1.69
1 Month Change	2.98%
3 Month Change	-11.41%
1 Year Change	58.96%
3 Year Change	592.83%
5 Year Change	719.07%
Change since IPO	180.15%

Recent News & Updates

Jun 17

Here's Why We Think NOTE (STO:NOTE) Might Deserve Your Attention Today

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

	NOTE	SE Electronic	SE Market
7D	-1.5%	0.4%	-0.7%
1Y	59.0%	-20.7%	-21.8%

Return vs Industry: NOTE exceeded the Swedish Electronic industry which returned -20.7% over the past year.

Return vs Market: NOTE exceeded the Swedish Market which returned -21.8% over the past year.

Price Volatility

Is NOTE's price volatile compared to industry and market?
NOTE volatility
NOTE Average Weekly Movement	5.3%
Electronic Industry Average Movement	7.2%
Market Average Movement	7.1%
10% most volatile stocks in SE Market	12.4%
10% least volatile stocks in SE Market	4.5%

Stable Share Price: NOTE is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NOTE's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	1,333	Johannes Lind-Widestam	https://www.note-ems.com

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.

NOTE Fundamentals Summary

How do NOTE's earnings and revenue compare to its market cap?
NOTE fundamental statistics
Market Cap	kr5.48b
Earnings (TTM)	kr231.06m
Revenue (TTM)	kr3.22b

24.2x

P/E Ratio

1.7x

P/S Ratio

Is NOTE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOTE income statement (TTM)
Revenue	kr3.22b
Cost of Revenue	kr2.79b
Gross Profit	kr430.65m
Other Expenses	kr199.59m
Earnings	kr231.06m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 17, 2022

Earnings per share (EPS)	7.97
Gross Margin	13.38%
Net Profit Margin	7.18%
Debt/Equity Ratio	39.1%

How did NOTE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOTE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NOTE. This is calculated by dividing NOTE's market cap by their current preferred multiple.
What is NOTE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr5.48b

NOTE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	15.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does NOTE's PE Ratio compare to its peers?

NOTE PE Ratio vs Peers

The above table shows the PE ratio for NOTE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	33.2x
HANZA Hanza	18.7x	21.0%	kr1.9b
NCAB NCAB Group	29.6x	14.4%	kr11.0b
PRIC B Pricer	60.1x	77.7%	kr2.0b
MYCR Mycronic	23x	14.8%	kr13.7b
NOTE NOTE	24.2x	n/a	kr5.5b

Price-To-Earnings vs Peers: NOTE is good value based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (33.2x).

Price to Earnings Ratio vs Industry

How does NOTE's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: NOTE is good value based on its Price-To-Earnings Ratio (24.2x) compared to the Swedish Electronic industry average (25.1x)

Price to Earnings Ratio vs Fair Ratio

What is NOTE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOTE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NOTE's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of NOTE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NOTE's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NOTE's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.2%

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.

Discover growth companies

Check out NOTE's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
NOTE competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has NOTE performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOTE has a high level of non-cash earnings.

Growing Profit Margin: NOTE's current net profit margins (7.2%) are higher than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: NOTE's earnings have grown significantly by 28.3% per year over the past 5 years.

Accelerating Growth: NOTE's earnings growth over the past year (67.9%) exceeds its 5-year average (28.3% per year).

Earnings vs Industry: NOTE earnings growth over the past year (67.9%) exceeded the Electronic industry 19%.

Return on Equity

High ROE: NOTE's Return on Equity (24.3%) is considered high.

Discover strong past performing companies

Financial Health

How is NOTE's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOTE's short term assets (SEK1.9B) exceed its short term liabilities (SEK1.2B).

Long Term Liabilities: NOTE's short term assets (SEK1.9B) exceed its long term liabilities (SEK183.0M).

Debt to Equity History and Analysis

Debt Level: NOTE's net debt to equity ratio (29%) is considered satisfactory.

Reducing Debt: NOTE's debt to equity ratio has increased from 20.7% to 39.1% over the past 5 years.

Debt Coverage: NOTE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NOTE's interest payments on its debt are well covered by EBIT (16.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NOTE has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.0yrs

Average management tenure

CEO

Johannes Lind-Widestam (50 yo)

3.92yrs

Tenure

kr5,307,000

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 ($USD507.90K) is about average for companies of similar size in the Swedish market ($USD529.85K).

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

Leadership Team

Experienced Management: NOTE's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: NOTE's board of directors are considered experienced (4.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31