companyName

extensiveId

feedTypes

includeDividend

includeEstimates

includeOverview

includeOwnership

includeResearchContent

researchId

snapshotDate

CompanyName_Query

companySlug

CompanyMetaData

Company_query

company

query CompanyName_Query(
  $companyName: String!
  $extensiveId: ID
  $snapshotDate: String
  $researchId: ID
  $includeResearchContent: Boolean!
  $feedTypes: [ContentType!]!
  $includeEstimates: Boolean!
  $includeOverview: Boolean!
  $includeOwnership: Boolean!
  $includeDividend: Boolean!
) {
  ...CompanyMetaData_Ux1x9
  ...Company_query_1TiJKa
}

fragment AnalystData on Analyst {
  name
  pageUrl
  jobTitle
  imgUrl
}

fragment AuthorList on Content {
  __isContent: __typename
  id
  authors {
    __typename
    id
    name
    pageUrl
  }
}

fragment ChangePercentBlock_Company on Company {
  defaultInstrument {
    isin
    symbol
    priceData {
      diff1mPercentage
      diff1yPercentage
      diff3yPercentage
      diffFromStartPercentage
    }
    id
  }
}

fragment CompactFeed_3NXCcw on Query {
  compactFeed: feedContent(companySlug: $companyName, filter: {types: $feedTypes}) {
    edges {
      node {
        __typename
        id
        ...TeaserExtraCompact_content
        createdAt
        companies {
          viewerIsFollowing
          id
        }
      }
      cursor
    }
    pageInfo {
      endCursor
      hasNextPage
    }
  }
}

fragment CompanyAnalystQuery on Company {
  analysts {
    ...AnalystData
    name
    pageUrl
    jobTitle
    imgUrl
    id
  }
}

fragment CompanyCoverage_Company on Company {
  analysts {
    name
    id
  }
  isPayingCustomerOf
  isFormerCustomerOf
  isCorporateCustomer
  ...CompanyAnalystQuery
  defaultInstrument {
    ...TargetAndRecommendation_Company
    id
  }
}

fragment CompanyDescription_Company on Company {
  description
  websiteUrl
  name
}

fragment CompanyDisclaimer_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    name
    isPayingCustomerOf
    isFormerCustomerOf
    id
  }
}

fragment CompanyDividendER_query on Company {
  name
  defaultInstrument {
    estimateData {
      reportingCurrency
    }
    dividendTransactions: estimateTransactions(first: 1, includeQuarters: false) {
      actualized {
        year
        dividend
        dividendYield
        payoutPercentage
        sharePrice
      }
      estimates {
        year
        dividend
        dividendYield
        payoutPercentage
        sharePrice
      }
    }
    id
  }
}

fragment CompanyDividendNonER_query on Company {
  name
  defaultInstrument {
    nonERDividendSet: nonERCompanyNumberSet(includeQuarters: false) {
      year
      dividend
      dividendYield
      epsReported
      sharePrice
      currency
    }
    id
  }
}

fragment CompanyDividend_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    ...CompanyDividendER_query
    ...CompanyDividendNonER_query
    defaultInstrument {
      coreId
      id
    }
    id
  }
}

fragment CompanyFinancials_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    ...NonERCompanyNumbers_query
    ...CompanyNumbers_query
    defaultInstrument {
      coreId
      id
    }
    id
  }
}

fragment CompanyHeader_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    id
    companyInsref
    name
    viewerIsFollowing
    followersCount
    isCorporateCustomer
    hasPinpointData
    hasDividendHistory
    sector {
      sectorname
      industry
    }
    regions
    extensiveExists
    researchContentExists
    defaultInstrument {
      symbol
      priceData {
        tradeCurrency
        lastPrice
        diff1dPercentage
      }
      marketplace {
        name
      }
      estimates: estimateTransactions(first: 1, includeQuarters: false) {
        date
      }
      nonERCompanyNumberSet(first: 1, includeQuarters: false) {
        year
      }
      id
    }
    topOwners {
      holders {
        name
      }
    }
    transactions: insiderTransactions(filter: {types: [BUY, SELL, SUBSCRIPTION]}) {
      edges {
        node {
          date
          id
        }
      }
    }
  }
}

fragment CompanyInsiderTransactions on Company {
  name
  regions
  insiderTransactions(filter: {types: [BUY, EXERCISE_OF_SHARE_OPTION, PLEDGE, RECEPTION_OF_SHARE_PREMIUM, SELL, SUBSCRIPTION]}) {
    edges {
      node {
        insider
        position
        volume
        price
        date
        unit
        type
        relatedParty
        id
      }
    }
  }
}

fragment CompanyInvestorConsensus_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    name
    companyInsref
    id
  }
}

fragment CompanyMetaData_Ux1x9 on Query {
  company(companySlug: $companyName) {
    name
    description
    pageUrl
    defaultInstrument {
      estimateData {
        modelType
      }
      id
    }
    id
  }
}

fragment CompanyName_Slug on Company {
  slug
}

fragment CompanyNumbers_query on Company {
  name
  defaultInstrument {
    estimateData {
      modelType
      reportingCurrency
    }
    estimateTransactions(first: 1, includeQuarters: true) {
      comparisonIndexName
      actualized {
        year
        quarter
        revenue
        revenueGrowth
        ebitda
        ebitAdjusted
        ebitReported
        preTaxProfit
        netEarnings
        epsReported
        epsAdjusted
        dividend
        payoutPercentage
        roePercent
        roiPercent
        enterpriseValue
        bookValue
        marketCap
        gearingPercent
        equityRatio
        dividendYield
        totalCosts
        loanLosses
        balanceSheetTotal
        tangibleBook
        cet1
        rwa
        sharePrice
        sharesTotal
        nav
        navPerShare
        opexOfNav
        totalShareholderReturn
        comparisonIndexReturn
        netDebtTotalAsset
        quarterlySharePrice
      }
      estimates {
        year
        quarter
        revenue
        revenueGrowth
        ebitda
        ebitAdjusted
        ebitReported
        preTaxProfit
        netEarnings
        epsReported
        epsAdjusted
        dividend
        payoutPercentage
        roePercent
        roiPercent
        enterpriseValue
        bookValue
        marketCap
        gearingPercent
        equityRatio
        dividendYield
        totalCosts
        loanLosses
        balanceSheetTotal
        tangibleBook
        cet1
        rwa
        sharePrice
        sharesTotal
        nav
        navPerShare
        opexOfNav
        totalShareholderReturn
        comparisonIndexReturn
        netDebtTotalAsset
        quarterlySharePrice
      }
    }
    id
  }
}

fragment CompanyOverviewGraphs_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      companyTransactions: estimateTransactions(first: 1, includeQuarters: false) {
        actualized {
          year
          revenue
          ebitAdjusted
          epsAdjusted
          dividendYield
          navPerShare
          totalShareholderReturn
        }
        estimates {
          year
          revenue
          ebitAdjusted
          epsAdjusted
          dividendYield
          navPerShare
          totalShareholderReturn
        }
      }
      id
    }
    id
  }
}

fragment CompanyOwners on Company {
  regions
  topOwners {
    recordDate
    compareDate
    source
    holders {
      name
      capitalPercent
      votingPowerPercent
      totalShares
      positionChange
      totalSharesChange
      shareChange
      isNew
      isRemoved
    }
  }
}

fragment CompanyOwnership_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    name
    ...CompanyOwners
    ...CompanyInsiderTransactions
    id
  }
}

fragment CompanyPageBottom_query_2bVJwf on Query {
  ...GeneralFeed_data_3NXCcw
  ...CompactFeed_3NXCcw
  ...UpcomingEventsQuery_Ux1x9
  ...RiskRecommendMatrix_query_Ux1x9
  ...CompanyOverviewGraphs_query_Ux1x9
  ...NonERCompanyOverviewGraphs_query_Ux1x9
  company(companySlug: $companyName) {
    companyInsref
    ...ForumUpdates_Company
    defaultInstrument {
      coreId
      id
    }
    id
  }
  allFeed: feedContent(first: 1, companySlug: $companyName, filter: {hideUpcomingVideos: true}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  main: feedContent(first: 1, companySlug: $companyName, filter: {hideUpcomingVideos: true, types: [COMPANY_REPORT, EXTENSIVE_COMPANY_REPORT, ANALYST_COMMENT, VIDEO, ARTICLE]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  webcasts: feedContent(first: 1, companySlug: $companyName, filter: {hideUpcomingVideos: true, types: [WEBCAST]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  thirdPartyResearch: feedContent(first: 1, companySlug: $companyName, filter: {types: [THIRD_PARTY_COMPANY_REPORT]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  releases: feedContent(first: 1, companySlug: $companyName, filter: {types: [STOCK_EXCHANGE_RELEASE, PRESS_RELEASE]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
}

fragment CompanyPageTop_query_Ux1x9 on Query {
  ...StockChart_ChartQuery_Ux1x9
  ...LatestReports_query_Ux1x9
  company(companySlug: $companyName) {
    isFund
    name
    ...CompanyCoverage_Company
    ...CompanyName_Slug
    ...CompanyDescription_Company
    ...FundNumbers_Company
    ...ChangePercentBlock_Company
    ...KeyEstimateFigures_Company
    ...InvestmentCompanyKeyFigures_Company
    defaultInstrument {
      id
      estimateData {
        modelType
      }
    }
    analysts {
      name
      id
    }
    id
  }
  extensiveReport: feedContent(first: 1, companySlug: $companyName, filter: {types: [EXTENSIVE_COMPANY_REPORT]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  analysis: feedContent(first: 1, companySlug: $companyName, filter: {types: [COMPANY_REPORT, EXTENSIVE_COMPANY_REPORT], tagNames_nin: ["Mallisalkku", "Arvonluojat"]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
  analysisArvonluojat: feedContent(first: 1, companySlug: $companyName, filter: {types: [COMPANY_REPORT, EXTENSIVE_COMPANY_REPORT], tagNames_nin: ["Mallisalkku"]}) {
    edges {
      node {
        __typename
        id
      }
    }
  }
}

fragment CompanyTagList on Company {
  pageUrl
  name
  viewerIsFollowing
}

fragment Company_query_1TiJKa on Query {
  ...CompanyHeader_query_Ux1x9
  ...CompanyOwnership_query_Ux1x9 @include(if: $includeOwnership)
  ...CompanyFinancials_query_Ux1x9 @include(if: $includeEstimates)
  ...CompanyDividend_query_Ux1x9 @include(if: $includeDividend)
  ...CompanyInvestorConsensus_query_Ux1x9
  ...CompanyPageTop_query_Ux1x9 @include(if: $includeOverview)
  ...CompanyPageBottom_query_2bVJwf @include(if: $includeOverview)
  ...CompanyDisclaimer_query_Ux1x9
  ...Extensive_query_3u4Ry5
  ...ResearchContent_query_14bL89
}

fragment Extensive_query_3u4Ry5 on Query {
  company(companySlug: $companyName) {
    extensive(extensiveId: $extensiveId, snapshotDate: $snapshotDate) {
      publishedAt
      pageUrl
      pdfUrl
      content {
        id
        title
        lang
        slug
        htmlBody
        publishedAt
        createdAt
        changedAt
        isOutdated
      }
    }
    id
  }
}

fragment ForumUpdates_Company on Company {
  name
  forum {
    threadUrl
    highlightedPosts {
      url
      author
      authorImgUrl
      text
      postedAt
      likesCount
    }
  }
}

fragment FundNumbers_Company on Company {
  defaultInstrument {
    isin
    symbol
    priceData {
      lastPrice
      ath
    }
    id
  }
}

fragment GeneralFeed_data_3NXCcw on Query {
  generalFeed: feedContent(first: 20, companySlug: $companyName, filter: {types: $feedTypes}) {
    edges {
      node {
        __typename
        id
        ...Teaser_content
        ...TeaserCompact_content
      }
      cursor
    }
    pageInfo {
      endCursor
      hasNextPage
    }
  }
}

fragment InvestmentCompanyKeyFigures_Company on Company {
  marketData {
    marketCap
  }
  defaultInstrument {
    priceData {
      tradeCurrency
      dailyTurnover
    }
    estimateData {
      modelType
    }
    estimateTransactions(first: 1, includeQuarters: true) {
      actualized {
        year
        quarter
        sharesTotal
        marketCap
        nav
        navPerShare
        dividendYield
        quarterlySharePrice
      }
      estimates {
        year
        quarter
        dividendYield
      }
    }
    id
  }
}

fragment KeyEstimateFigures_Company on Company {
  marketData {
    marketCap
  }
  defaultInstrument {
    priceData {
      tradeCurrency
      dailyTurnover
      lastPrice
      marketCap
    }
    sector
    fundamentalData {
      ebit
      eps
      sales
      dividend
    }
    estimateData {
      modelType
      estimates {
        firstEstimateYear {
          year
          bookValue
          netSales
          dividendA
          epsAdjusted
          ebitAdjusted
          hybridLoan
          noOfShares
          netDebt
          mvMinorities
          mvAssociated
          roePercent
        }
      }
    }
    estimatesSharePrice: estimateTransactions(first: 1) {
      estimates {
        sharePrice
      }
    }
    id
  }
}

fragment LatestReports_query_Ux1x9 on Query {
  extensiveReport: feedContent(first: 1, companySlug: $companyName, filter: {types: [EXTENSIVE_COMPANY_REPORT]}) {
    edges {
      node {
        __typename
        createdAt
        pageUrl
        id
      }
    }
  }
  analysis: feedContent(first: 1, companySlug: $companyName, filter: {types: [COMPANY_REPORT, EXTENSIVE_COMPANY_REPORT], tagNames_nin: ["Mallisalkku", "Arvonluojat"]}) {
    edges {
      node {
        __typename
        createdAt
        pageUrl
        id
      }
    }
  }
  analysisArvonluojat: feedContent(first: 1, companySlug: $companyName, filter: {types: [COMPANY_REPORT, EXTENSIVE_COMPANY_REPORT], tagNames_nin: ["Mallisalkku"]}) {
    edges {
      node {
        __typename
        createdAt
        pageUrl
        id
      }
    }
  }
}

fragment NonERCompanyNumbers_query on Company {
  name
  defaultInstrument {
    nonERNumberSet: nonERCompanyNumberSet(includeQuarters: true) {
      year
      quarter
      revenue
      ebitda
      ebitReported
      epsReported
      dividend
      sharesTotal
      roe
      roi
      enterpriseValue
      marketCap
      gearingRatio
      equityRatio
      dividendYield
      sharePrice
      currency
      evSales
      evEbitda
      evEbit
      pb
      netIncome
      ptp
    }
    id
  }
}

fragment NonERCompanyOverviewGraphs_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    defaultInstrument {
      overviewGraphsData: nonERCompanyNumberSet(includeQuarters: false) {
        year
        revenue
        ebitReported
        epsReported
        dividend
        dividendYield
        currency
      }
      id
    }
    id
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ResearchContent_query_14bL89 on Query {
  company(companySlug: $companyName) {
    slug
    researchContentFeed @include(if: $includeResearchContent) {
      __typename
      id
      ...Teaser_content
    }
    researchContentIds @include(if: $includeResearchContent)
    researchContent(researchId: $researchId) @include(if: $includeResearchContent) {
      researchId
      researchTitle
      publishedAt
      pageUrl
      content {
        id
        title
        lang
        slug
        htmlBody
        publishedAt
        createdAt
        changedAt
        isOutdated
      }
    }
    id
  }
}

fragment RiskRecommendMatrix_query_Ux1x9 on Query {
  company(companySlug: $companyName) {
    defaultInstrument {
      riskData: estimateTransactions(first: 1) {
        businessRisk
        valuationRisk
      }
      id
    }
    id
  }
}

fragment StockChart_ChartQuery_Ux1x9 on Query {
  company(companySlug: $companyName) {
    isFund
    defaultInstrument {
      coreId
      id
      marketOpen
      marketClose
      marketplace {
        region
      }
      priceData {
        lastPrice
      }
      returns {
        day
        week
        month
        threeMonths
        sixMonths
        year
        threeYears
        fiveYears
        tenYears
        ytd
        total
      }
    }
    id
  }
}

fragment TargetAndRecommendation_Company on Instrument {
  estimateData {
    modelType
    researchCurrency
    estimates {
      date
      recommendation
      targetPrice
    }
  }
}

fragment TeaserCompact_content on Content {
  __isContent: __typename
  __typename
  id
  type
  title
  createdAt
  isPremium
  pageUrl
  lang
  companies {
    ...CompanyTagList
    id
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
  ...AuthorList
}

fragment TeaserExtraCompact_content on Content {
  __isContent: __typename
  id
  title
  createdAt
  pageUrl
  lang
  companies {
    name
    pageUrl
    viewerIsFollowing
    id
  }
}

fragment Teaser_content on Content {
  __isContent: __typename
  __typename
  id
  type
  title
  createdAt
  pageUrl
  imgUrl
  isPremium
  lang
  companies {
    ...CompanyTagList
    id
  }
  publishers {
    imgUrl
  }
  authors {
    __typename
    id
  }
  ... on AnalystComment {
    preview
  }
  ... on Article {
    preview
  }
  ... on CompanyReport {
    preview
  }
  ... on ThirdPartyCompanyReport {
    preview
  }
  ... on QA {
    preview
  }
  ... on Video {
    preview
    liveTime
    videoDuration
  }
  ... on Webcast {
    preview
    liveTime
  }
  ...AuthorList
  ...Reactions
}

fragment UpcomingEventsQuery_Ux1x9 on Query {
  company(companySlug: $companyName) {
    defaultInstrument {
      calendarEvents(first: 10) {
        edges {
          node {
            date
            type
            period
            id
          }
        }
      }
      id
    }
    id
  }
}


name

description

pageUrl

defaultInstrument

companyInsref

viewerIsFollowing

followersCount

isCorporateCustomer

hasPinpointData

hasDividendHistory

sector

regions

extensiveExists

researchContentExists

topOwners

insiderTransactions

isPayingCustomerOf

isFormerCustomerOf

extensive

slug

feedContent

Note

Invitation to presentation of NOTE´s Q1 Report on 23 April

NOTE strengthens its defence position through the acquisition of STI - the UK’s leading EMS partner to the defence industry, confirms outlook for 2026 and provides outlook for Q1

Notice to attend the Annual General Meeting in NOTE AB (publ) on Thursday, 23 April 2026

NOTE’s Annual and Sustainability Report 2025

NOTE joins the Swedish Security and Defence Industry Association (SOFF)

NOTE receives SEK 135 million order from leading Nordic defence company

NOTE, Webcast, Q4'25

NOTEs Year-end Report 2025

Invitation to presentation of NOTE´s Year-end Report on 26 January

New number of shares and votes in NOTE

NOTE’s Nomination Committee for the Annual General Meeting 2026

NOTE completes previously announced acquisition of Kasdon Group and carries out directed share issue

NOTE, Webcast, Q3'25

NOTEs Interim Report Q3 2025

Invitation to presentation of NOTE´s Interim Report on 16 October

NOTE expands in the UK with acquisition of Kasdon Group – strong position in defense

NOTE strengthens its leadership – Bahare Mackinovski appointed Chief Sales and Marketing Officer

NOTE's CEO sells 12,000 shares - remains as major shareholder in NOTE

NOTE, Webcast, Q2'25

NOTEs Interim Report Q2 2025

NOTE receives order worth 132 MSEK and expands collaboration with customer within Security & Defence

Invitation to presentation of NOTE´s Interim Report on 14 July

Report from the Annual General Meeting in NOTE AB (publ) on 24 April 2025

NASDAQ Stockholm

Note operates in the electronics industry and focuses on the development and manufacturing of electronic components and systems. The company's products are aimed at companies in sectors such as the automotive industry, medical technology and consumer electronics. The operations are international and target customers globally. Note was founded in 1990 and is headquartered in Stockholm.

Hi! Some informal reflection: Compared to the realized return on capital, organic growth, and M&A opportunities, I consider those historical valuation multiples to be low. In my opinion, this is also reflected in the long-term stock returns of the companies, which have been amazing, especially for Note, Incap, and Kitron. I’ve been mulling over the following possible explanations:  The market has constantly priced in a high risk that hasn’t happened to materialize. Growth and profitability have consistently surprised to the upside, meaning the market has continuously priced in slowing growth and/or weakening profitability.  In my view, the risk level doesn’t justify such low multiples and high required rates of return. Factors that come to mind as increasing the investor’s required return:  Poor visibility into the end product and thus the demand drivers, which makes understanding and forecasting the business difficult. The resilience of an electronics contract manufacturer in a sharper recession is a question mark.  Your screenshots also match my perception that current valuations are slightly above the longer-term average, but not significantly (adjusting for the post-Covid boom). How does the present differ from the past? The short-term organic growth outlook is more challenging looking at those 12-month revenue growth forecasts. Incap’s growth is based on a weak comparison period and an acquisition, and I assume Hanza’s growth also includes an acquisition.  Source: Bloomberg There are still plenty of M&A opportunities in the market, but there are also many listed contract manufacturers operating with an active M&A strategy, which should limit the value creation potential of acquisitions. On the other hand, this has been true for some time, yet good acquisition targets still seem to have been found. Profitability levels fluctuate with volume, and if organic growth continues at the 0–5% level, I don’t expect major changes in profitability compared to history. Thus, the sector’s multiples still seem attractive to me, considering the drivers supporting long-term demand. I recall the reasons for the chronically low valuation levels being speculated upon in extensive reports, and the industry’s poor reputation has been one factor that has come up. Compared to Elcoteq, which went bankrupt in the 2000s, the customer structures of Nordic contract manufacturers are clearly more diversified, which limits the companies’ risk profiles. Additionally, these companies focus more on industrial electronics (Elcoteq was consumer electronics). Perhaps the Elcoteq case, among others, has left some scars on investors. Antti is on vacation this week and he knows the sector significantly more deeply than I do. He will certainly be happy to comment on the topic when he returns.

To continue Tommi’s good reflection and to chew on the question posed by @Mauri, this analysis could be expanded to cover European countries more broadly. I chose one Swiss, one British, one French, and one German company (whose shares were just delisted from the stock exchange); all, however, are electronics contract manufacturers with a turnover of 200 million plus. Compared to the Nordic selection, the performance of all these has been anemic, to say the least.    Source: Refinitiv and the undersigned’s spreadsheet program What if the markets are pricing high risk into Nordic contract manufacturers because the same business isn’t yielding results on the continent, and they don’t believe the northern dimension can indefinitely resist the industry dynamics? Globally, there aren’t many larger EMS companies with operating profit margins above 5%. All of the companies have grown through acquisitions over the last five years, and organic growth in the near future (and past) is negative. However, all selected companies have also invested in new equipment (I included my personal favorite financial ratio in the table: operating cash flow divided by investments, as well as the ratio of operating cash flow to acquisitions). Every company has invested more in itself during the period than money has come in, so all the companies are also heavily indebted. Additionally, all except Cicor have also gone to the owners’ pockets to dig for additional funding. In our Nordic flock, investments have been more moderate and yet growth has been better. I wonder why this is? Are our companies simply better managed? If we look at another of my favorite ratios, Sales-to-Capital (which in this case also includes working capital and acquisition prices), our European friends have all nonetheless generated more than one euro in sales for every new euro invested—with the aggressively growing KATEK reaching nearly two. For the Nordic peers, this figure would be nearly the same at 1.5 for all (except Scanfil, which is slightly higher due to fewer acquisitions during the review period). From this, one could conclude that there cannot be very large differences in sales prices to customers for similar services, which means the better profitability of Nordic companies likely stems from better cost management—but how could they all manage that across the board? I don’t have any answers to give here, only more questions at most. In my opinion, comparing to contract manufacturers more broadly gives a much more pessimistic view of the industry than what we have been used to in our part of the world in recent years. If the industry as a whole is poor, and an outside investor doesn’t really have the opportunity to compare individual players’ customers with each other, it is relatively justified to price risk properly into the required rate of return. After all, this has already been realized in terms of valuation for many companies, and there are no dividends or buybacks to make up for it.

I listened to NOTE’s Q3 results while out for a run over the weekend. Quite a lot has happened at NOTE over the past few months. Guidance has been revised a couple of times, the CEO has sold shares, there has been investment in a new Swedish factory, and I think there was a release about share buybacks (maybe routine; I haven’t checked whether they have actually bought any or not). In light of that, the earnings call was quite calm. Johannes felt that the situation, demand, and potential are better than what the Q3 report was able to convey in terms of numbers. He remained convinced that growth will eventually come and that there is demand for their partnership. Customers have not canceled deals; they have only delayed orders. (At this point, I have to note that regardless of the industry or company, everyone seems to be expecting that growth in the coming years will just fall from the sky when the time is right. I understand that falling interest rates etc. support demand, but there has been quite a lot of this “growth will come in due time” talk in Q3 calls.) Johannes was downright proud of the profitability. And why wouldn’t he be, when they can achieve a respectable EBIT margin of over 8 percent on declining revenue. It’s not an Incap-level figure, but it deserves a small pat on the back.  All segments are leaking:  In the big picture, the direction is right, but 2024 will be a transition year, and 2025 will be a struggle to reach 2023 levels.  If we stay roughly within the 2024 guidance, EV/EBIT will likely hover somewhere between 10–13, and P/E around 13–16. On top of that, if 2025 brings about ten percent more revenue with profitability (EBIT) at 10%, then 2025e EV/EBIT drops below ten and P/E is just over ten. In the Q&A section, someone asked why they even provide guidance when their forecasts can’t seem to hit the mark. Johannes was convinced that guidance can still provide added value to owners and investors, but if the misses continue, they may consider stopping guidance altogether. In summary: NOTE is clearly going through a more difficult period. A new growth phase and recovering profitability are expected in 2025. The potential is there. However, I expect that even if the bottom has been reached, the turn back to growth may be slower and bumpier than we might currently want to believe. In the long run, I still see NOTE as one of the winners in the EMS industry, and it will likely gradually grow into one of Europe’s leading EMS houses (if it cannot already be cautiously considered as such).

I listened to NOTE’s latest earnings webcast at the end of last week (right after Incap’s equivalent). It wasn’t nearly as bleak as one might assume from the share price drop, the CEO’s share sales, and the negative profit warning. However, I must add immediately that CEO Johannes’s commentary always seems to have a slight air of over-optimism, so it’s worth applying a small “safety margin filter” when listening to these NOTE events. Nevertheless, in Johannes’s words, demand, the market situation, and the outlook for the coming years are much better than what can currently be reported in the form of figures. Regarding the acute situation, he said the end of Q1 was more difficult than the end of Q2, so perhaps the dip has already started to level out. About the coming years, he said he sees no reason why NOTE wouldn’t grow by double-digit percentages from 2025 onwards, doing exactly the same things as in previous years. In addition to growth, he was confident that profitability will continue to improve. Regarding profitability, I must say that in my opinion, NOTE has protected it quite admirably in this otherwise weak situation. A few of my other thoughts:  Western production facilities are performing well, but China in particular is stalling. The Chinese unit was previously described as being “detached” from the company’s other production facilities, so perhaps it is even up for a quiet sale, as it reportedly doesn’t quite fit NOTE’s current situation (customers have moved from the Chinese factory to European factories in recent years). There are interesting discussions on the M&A front from time to time, but sellers apparently still have 2021-2022 valuations in mind, making it difficult to close deals. Some business shifted to future quarters right at the end of Q2. Investments continue as normal because the growth is definitely coming. Q3 will be weak due to the holiday season. Inventory will continue to decrease, resulting in further improvements to cash flow with a few months’ lag. The order backlog has shrunk significantly, but this is expected because in the current situation, customers don’t need to fear delays due to component shortages etc., which led to massive pre-ordering in 2020-2023 (and, as we know, led to bloated inventories across almost all industries). Paraphrased quote: “I don’t believe demand in 2024 is any weaker than in 2021-2023, but it seems some of the 2024 demand was already satisfied in previous years.”    The valuation is quite attractive compared to the numbers of the 2020s. Everyone has to consider for themselves whether the 2020s is even a valid comparison period for (Western) EMS companies, given the various tailwinds (and, of course, headwinds) that have been present.    Looking at the current guidance, a quick calculation gives me a 2024e EV/EBIT multiple of 8.2 - 9.6 (top end of guidance - bottom end of guidance). EV/S on either side of 1. Doesn’t this already sound downright cheap? Pair that with an optimistic 2025e scenario, where they reach the midpoint of the 2024 guidance and achieve 10 percent growth with an 11% EBIT margin in 2025. In that case, the 2025e EV/EBIT would be 7.3 and EV/S 0.8. I’m almost tempted to buy NOTE shares. Finally, a question for @Antti_Viljakainen and @Tommi_Saarinen; what are your thoughts on the valuation multiples of Western EMS firms over the last 10 years? And how do you relate the situation to the present day and future years? (Your answers regarding individual companies can, of course, be found in your reports, but if we could get some informal reflections on these companies as a group?) In the 2010s, multiples were miserable across the board. P/Es and EV/EBITs were chronically under 10, regardless of business development. Then, in the early 2020s, we probably hit some kind of valuation ceiling for EMS companies, when all the good Western EMS firms had multiples solidly in the double digits and usually started with something other than a one.

Recording the results for this quiet thread. Revenue was slightly over a billion kronor, profitability improved to 11%.  Financial performance in October-December  • Sales amounted to SEK 1,001 (1,025) million. Organic growth was -1%, currency adjusted.  • Operating profit was SEK 113 (98) million. Adjusted operating profit was SEK 114 (108) million, adjusted for revaluations of operating assets and liabilities in foreign currencies and acquisition costs.  • The operating margin amounted to 11.3% (9.5%). The adjusted operating margin was 11.4% (10.5%).  • Profit after financial items was SEK 109 (91) million.  • Profit after tax amounted to SEK 86 (73) million, corresponding to SEK 3.04 (2.55) per share.  • Adjusted for items affecting comparability, such as acquisition-related payments made and investments in the property in Torsby, Sweden, operating cash flow amounted to SEK 58 (140) million. Total cash flow after investments amounted to SEK -285 (124) million, or SEK -9.98 (4.35) per share.                    Inderes              NOTEs Year-end Report 2025 - Inderes    Financial performance in October-December • Sales amounted to SEK 1,001 (1,025) million. Organic growth was -1%, currency adjusted. • Operating profit was SEK 113 (98) million. Adjusted operating...                             Webcast                   Inderes              NOTE, Webcast, Q4'25 - Inderes    Time: 26.01.2026 klo 11.00 Language: en Language: en Venue: Citylife, Sveavägen 63 Sector: Information technology Activity: WebcastPresentationen kommer att hållas hos Citylife på Sveavägen 63 via Inderes i Stockholm. Anmälan görs...                             aaahhhhh  Dividend  • To maximise its financial freedom to act in the sector’s ongoing structural transformation, the Board of Directors is proposing that no dividend is paid for 2025.

This was already in the Incap thread; of course, this tweet thread was mostly about them, but there’s also information on other companies in the industry here. @Elias_L has done a great job!  https://x.com/EliasLuhtaniemi/status/1849726314670063666        Rest of the tweet thread, but easier to read on X

@Isa_Hudd interviewed NOTE’s CEO in Swedish. If you don’t know Swedish, you can get some help from YouTube’s auto-translations (though they aren’t that good :D), but even those who don’t speak Swedish can get something out of it.  Johannes Lind-Widestam, CEO of NOTE, doesn’t dodge any questions as he summarizes the company’s third quarter. Everything from negative sales growth to profit warnings and personal share sales is put through the wringer! The plan forward is as clear as the rest of the communication: growth is the goal! https://www.inderes.se/videos/note-q324-2024-ar-ett-mellanar Contents: 00:00 Introduction  00:27 “A lost year regarding sales”: profit warning and postponed financial targets  01:50 Continued decline in China, Nordic upturn and expansion  03:00 Overcapacity risks? On historical downturns and production peaks vs the current situation  05:50 The industry’s underlying growth and trends  07:49 Potential M&As: supply exists, unwilling to overpay  09:50 Communications - it will happen, the only question is when  11:50 The “problem child” Greentech  14:00 On growth going forward  14:59 Comments on incentive programs + sales of personal shares in NOTE This video can only be found on the Inderes Nordic channel, which also features English-language videos.   EDIT: Below is a tweet about Note’s result, with a 2/5 translation below.  https://x.com/torslandatrader/status/1845706280712749330

Johan Hagberg

Egil Christen Dahl

Note

203.60 SEK

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