NKT A/S (NKT.CO) | Investment Case

1. Company Snapshot

1.a. Company Description

NKT A/S develops, manufactures, and markets cables, accessories, and solutions in Denmark and internationally.It operates through Solutions, Applications, and Service & Accessories segments.The company offers high voltage cable solutions, including high voltage onshore and offshore AC and DC, city, and dynamic cables; medium voltage and universal cables; and low voltage building wires, flexible cables and conduits, control cables, 1 kV cables, and telecom energy cables.

The company also provides high voltage cable accessories, such as GIS/transformer terminations, low pressure oil-filled cable systems, outdoor terminations, wind power applications, and joints; medium voltage cable accessories, which include medium voltage cable joints, cable connectors, voltage terminations, cable branch cabinets, paper-insulated lead sheath cables, and pre-assembled connection cables.In addition, it offers onshore cable services comprising of maintenance, spare parts management, resources on call, and cable jointing and termination services, as well as repair preparedness; and offshore cable, high voltage testing, cable monitoring, and oil and gas cable competence center services, as well as technology consulting services.The company was formerly known as NKT Holding A/S and changed its name to NKT A/S in May 2017.

NKT A/S was founded in 1891 and is headquartered in Brøndby, Denmark.

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1.b. Last Insights on NKT

NKT A/S's recent performance has been positively driven by its robust Q3 2025 financial results, highlighted by a record operational EBITDA. The company's ambitious growth strategy and ability to achieve significant milestones despite cash flow and margin pressures have garnered attention. Additionally, the company's strategic plans are likely to drive future growth. NKT A/S also faces an investigation into alleged anti-competitive practices in the Slovak cable market, but no significant impact has been reported. The company's focus on growth and operational efficiency has been a key driver.

1.c. Company Highlights

Last Price	789.5
Change Percentage	0.38%
Open	788.5
Previous Close	786.5
Market Cap ( Millions)	42412
Volume	99120
Year High	842
Year Low	395.2
M A 50	729.34
M A 200	587.71

FCF Yield	-8.19%
Dividend Yield	0.00%
ROE	11.69%
Debt / Equity	0.00%
Net Debt / EBIDTA	-227.75%
Price To Book	3.07
Price Earnings Ratio	26.74
Price To FCF	-12.21
Price To sales	1.61
EV / EBITDA	10.75

2. Transcript Summary

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3. NewsRoom

NKT AS (NRKBF) Q3 2025 Earnings Call Highlights: Record EBITDA and Strategic Growth Plans ...

Nov -19

Source:

NKT is selected as preferred bidder for high-voltage interconnector project connecting Scotland and England

Sep -15

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.31%)

6. Segments

Solutions

Expected Growth: 7.77%

NKT A/S's 7.77% growth is driven by increasing demand for high-voltage cables, expansion into renewable energy markets, and strategic acquisitions. Additionally, investments in research and development, coupled with a strong order backlog, have contributed to the company's growth momentum.

Applications

Expected Growth: 7.3%

NKT A/S's 7.3% growth is driven by increasing demand for high-voltage cables, expansion into renewable energy markets, and strategic acquisitions. Additionally, investments in research and development have improved product offerings, while a strong order backlog and growing tender pipeline provide visibility into future growth.

Service & Accessories

Expected Growth: 4.83%

NKT A/S's Service & Accessories segment growth of 4.83% is driven by increasing demand for high-voltage cable systems, expansion in offshore wind farms, and growing need for grid modernization. Additionally, the company's strategic focus on service and maintenance contracts, as well as its investments in digitalization and technology, contribute to the segment's growth.

Inter-segment Transactions

Expected Growth: 5.83%

The 5.83% growth in inter-segment transactions at NKT A/S is driven by increasing demand for high-voltage solutions, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on innovation and R&D has led to the development of new products and services, further boosting growth.

7. Detailed Products

High-Voltage Cables

NKT A/S designs and manufactures high-voltage cables for the transmission and distribution of electrical energy, including submarine cables, underground cables, and overhead lines.

Medium-Voltage Cables

NKT A/S offers a range of medium-voltage cables for power distribution, including XLPE-insulated cables and paper-insulated cables.

Low-Voltage Cables

NKT A/S provides low-voltage cables for building installations, including electrical wiring, earthing, and lightning protection.

Fibre Optic Cables

NKT A/S designs and manufactures fibre optic cables for telecommunications, including fibre-to-the-home (FTTH) and fibre-to-the-antenna (FTTA) solutions.

Renewable Energy Solutions

NKT A/S offers solutions for connecting offshore wind farms to the grid, including submarine cables and high-voltage transmission systems.

Grid Connection Solutions

NKT A/S provides grid connection solutions, including high-voltage transmission systems and substations.

8. NKT A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

NKT A/S operates in the fiber optic industry, which has a moderate threat of substitutes. While there are alternative technologies available, such as wireless communication, they are not yet widely adopted, and fiber optic cables remain the dominant technology.

Bargaining Power Of Customers

NKT A/S has a diverse customer base, including telecom operators and governments, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

NKT A/S relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's large scale of operations and long-term contracts help to mitigate this risk.

Threat Of New Entrants

The fiber optic industry has high barriers to entry, including significant capital expenditures and technical expertise. This makes it difficult for new entrants to compete with established players like NKT A/S.

Intensity Of Rivalry

The fiber optic industry is highly competitive, with several established players competing for market share. NKT A/S faces intense competition from companies like Prysmian Group and Nexans.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	11.64%
Debt Cost	5.74%
Equity Weight	88.36%
Equity Cost	10.11%
WACC	9.61%
Leverage	13.17%

11. Quality Control: NKT A/S passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Signify

A-Score: 5.8/10

Value: 8.5

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Nexans

A-Score: 4.8/10

Value: 6.8

Growth: 6.8

Quality: 5.0

Yield: 3.1

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Prysmian

A-Score: 4.8/10

Value: 2.8

Growth: 7.3

Quality: 4.0

Yield: 2.5

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

NKT

A-Score: 4.4/10

Value: 5.5

Growth: 7.4

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

nVent Electric

A-Score: 4.3/10

Value: 1.4

Growth: 5.4

Quality: 6.6

Yield: 2.5

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

Landis+Gyr

A-Score: 3.9/10

Value: 6.5

Growth: 0.4

Quality: 3.7

Yield: 5.6

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

66.46%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.61%

NKT A/S - DK0010287663

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NKT

1.c. Company Highlights

Lower Yield

Strong Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Average Quality

Earnings Miss

Stable Momentum

Medium Volatility

Revenues Miss

Higher Growth

Better Quality

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.31%)

6. Segments

Solutions

Expected Growth: 7.77%

Applications

Expected Growth: 7.3%

Service & Accessories

Expected Growth: 4.83%

Inter-segment Transactions

Expected Growth: 5.83%

7. Detailed Products

High-Voltage Cables

Medium-Voltage Cables

Low-Voltage Cables

Fibre Optic Cables

Renewable Energy Solutions

Grid Connection Solutions

8. NKT A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: NKT A/S passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

789.5$

Current Price

789.5$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA