NCAB Group: Electronic Components in the north of Europe

NCAB Group (NCAB) is a global full-service supplier of printed circuit boards, based on Sweden, with local presence in 17 countries and sales in 45 countries.

The company has been listed on the NASDAQ Nordic (Sotckholm stock exchange) since June 2018.

The business model is not fully innovative but the way to manage it is. Company is categorized as Small Cap, within the technology sector.

Let’s see its key figures.

2015201620172018
Revenues (Mill)1.2001.2181.4001.616
Profit (Mill)556540104
Free Cash Flow (Mill)37753368
ROA11,45%12,86%7,41%16,31%
ROE67,55%54,05%30,33%51,89%
Current ratio1,121,290,921,68

Currency: SEK | Exchange rate: 10 euro/SEK

The company’s sales have a constant growth and the profits have been growing in a greater percentage. The return on assets is over 10% and the return on equity is over 50%, which tells us about an optimization of leverage. It has no liquidity problems (this is also improving). 2017 was an atypical year with worse results.

Let’s see what it has performanced in this time in the stock market:

Growth+value reflected in price stock

Pending subject

The pending subject is the traded volume, which is low, although this is common to almost all European small caps.

First days of quation. Diferent performance than average USA one

We still have to see how the financial year 2019 has closed, which will be published in February (annual financial statements). Meanwhile we have the comparisons of the third quarter.

3Q17-3Q18 3Q18-3Q19 Jan-Sep 19
Revenues (Mill)1.6641.8131.338
Profit (Mill)13216097
Operating Cash Flow (Mill)69,9149,2108,2
ROIC37,9%38,1%
ROE51,9%44,8%
EUR / SEK (average)10,2610,3510,57

The sales have grown by 8% compared to the same period of the previous year, the profit has increased by 20% the profitability of the capital used improves slightly to an extraordinary 38% and the operating cash flows have doubled.

This company not only grows steadily, but creates abundant value for the shareholder. In the Nordic Stock Exchange small caps like this offer growth and value.

And by the way, 80% profitability in 2019!

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