Novotek AB (NTEK B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intellego Technologies AB

Novotek AB

NCAB Group AB

Hexatronic Group AB

Proact IT Group AB

Elos Medtech AB

Why is Novotek AB ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.87%

Healthy long term growth as Net Sales has grown by an annual rate of 9.92%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.74

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at SEK 74.05 MM
NET PROFIT(9M) Higher at SEK 59.6 MM
CASH AND EQV(HY) Highest at SEK 278.7 MM

With ROE of 33.33%, it has a fair valuation with a 4.15 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 20.00%, its profits have risen by 89.7% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 20.00% in the last 1 year, much higher than market (OMX Stockholm 30) returns of 8.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Novotek AB should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Novotek AB for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Novotek AB

20.0%

0.50

35.31%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.92%

EBIT Growth (5y)

7.51%

EBIT to Interest (avg)

27.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.66

Sales to Capital Employed (avg)

2.41

Tax Ratio

15.40%

Dividend Payout Ratio

24.77%

Pledged Shares

Institutional Holding

ROCE (avg)

72.94%

ROE (avg)

21.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.15

EV to EBIT

14.77

EV to EBITDA

10.53

EV to Capital Employed

8.63

EV to Sales

1.52

PEG Ratio

0.14

Dividend Yield

1.83%

ROCE (Latest)

58.43%

ROE (Latest)

33.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 74.05 MM

NET PROFIT(9M)

Higher at SEK 59.6 MM

CASH AND EQV(HY)

Highest at SEK 278.7 MM

-15What is not working for the Company

INTEREST(HY)

At SEK 1.7 MM has Grown at 70%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,230

RAW MATERIAL COST(Y)

Grown by 50.67% (YoY

OPERATING PROFIT(Q)

Lowest at SEK 12.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.95 %

PRE-TAX PROFIT(Q)

Lowest at SEK 7.4 MM

NET PROFIT(Q)

Lowest at SEK 4.6 MM

EPS(Q)

Lowest at SEK 0.43

Here's what is working for Novotek AB

Operating Cash Flow

Highest at SEK 74.05 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Cash and Eqv

Highest at SEK 278.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Novotek AB

Interest Coverage Ratio

Lowest at 1,230

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At SEK 4.6 MM has Fallen at -42.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Interest

At SEK 1.7 MM has Grown at 70%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit

Lowest at SEK 12.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 9.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 7.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Pre-Tax Profit

Fallen at -27.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 4.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0.43

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Raw Material Cost

Grown by 50.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales