Nolato AB (publ) (NOLA-B.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

Nolato AB (publ) develops, manufactures, and sells plastic, silicone, and thermoplastic elastomer products for medical technology, pharmaceutical, consumer electronics, telecom, automotive, and other industrial sectors in North America, Sweden, Asia, and other Europe region.The company offers consumables and reusable labware for clinical, chemical, forensic, research, and industrial testing laboratories; manufactures pipette tips, deep-well plates, microtubes, and PCR products; assemblies and post-processing services; and products for primary pharmaceutical packaging, as well as for solids, creams, and ophthalmic and customized production solutions.It designs, develops, and produces advanced components, subsystems, and ready-packaged electronics products, such as laser applications and ceramics, fitness trackers, loudspeaker systems, thermostats, webcams, and vaporiser heating products; automotive products; EMI shielding, thermal interface materials, and silicone sealing and damping solutions; and supplies plastic components and assemblies for food processing equipment, such as coffee machines and blenders.

The company was formerly known as Nordiska Latexfabriken i Torekov AB and changed its name to Nolato AB (publ) in 1982.Nolato AB (publ) was incorporated in 1938 and is headquartered in Torekov, Sweden.

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1.b. Last Insights on NOLA

Nolato AB's recent performance was negatively impacted by the decline in European markets, with the STOXX Europe 600 Index ending lower and key indices like France's CAC 40 and Germany's DAX also declining. The company's ability to navigate economic fluctuations was compromised by the renewed trade and geopolitical uncertainties. Furthermore, the modest eurozone business activity growth and heightened optimism in the business outlook created a challenging environment for Nolato AB to operate in.

1.c. Company Highlights

Last Price	51.45
Change Percentage	-1.81%
Open	52.45
Previous Close	52.4
Market Cap ( Millions)	13859
Volume	60451
Year High	64.65
Year Low	46.8
M A 50	58.22
M A 200	58.86

FCF Yield	3.25%
Dividend Yield	2.92%
ROE	14.22%
Debt / Equity	33.62%
Net Debt / EBIDTA	86.61%
Price To Book	2.51
Price Earnings Ratio	17.84
Price To FCF	30.73
Price To sales	1.46
EV / EBITDA	9.58

2. Nolato's Q3 2025 Earnings: Strong Margin Expansion and Growth

Nolato reported a robust financial performance in Q3 2025, with sales reaching SEK 2.3 billion and operating profit rising 20% to SEK 281 million. The EBITDA margin improved by 2.2 percentage points to 12.0%, including a non-recurring positive item of SEK 7 million. Earnings per share (EPS) came in at 0.8, beating analyst estimates of 0.65. Revenue growth was driven by organic growth in both business areas, Medical Solutions and Engineered Solutions, with a 2% currency-adjusted organic growth.

Publication Date: Nov -24

                                    📋 Highlights
                                    Organic Growth and EBITDA Increase:
                                                2% organic growth (currency-adjusted) and a 2.2 percentage point EBITDA margin rise to 12.0%, driven by cost savings and price adjustments.
Operating Profit Surge:
                                                Operating profit rose 20% to SEK 281 million, with sales reaching SEK 2.3 billion, reflecting robust margin expansion.
CapEx Expansion in Hungary:
                                                Q3 net investments totaled SEK 183 million, with full-year 2025 CapEx projected at SEK 850 million, focused on Hungary’s expansion.
Margin Improvement in Engineered Solutions:
                                                EBITDA margin improved 1.8 percentage points to 10.2%, with sales of SEK 1.035 billion (currency-adjusted organic growth of 2%).
Future Margin Potential:
                                                CFO highlights potential to raise EBITDA margin to 13% through Hungary’s new programs, increased capacity utilization, and volume growth.

                                

Business Area Performance

Medical Solutions continued its growth trajectory, driven by global expansions, while Engineered Solutions saw a sharp margin improvement of 1.8 percentage points, driven by cost savings, increased capacity utilization, and price adjustments. Sales in Engineered Solutions totaled SEK 1.035 million during the quarter, with a 2% currency-adjusted organic growth. As Christer Wahlquist noted, "We are expanding our business in Hungary, Poland, and Malaysia, with validation deliveries ongoing in Hungary."

Outlook and Guidance

Nolato expects to continue its growth momentum, with analysts estimating revenue growth of 5.4% next year. The company is investing heavily in its expansion plans, with net investments of SEK 183 million in the quarter and expected CapEx of around SEK 850 million for the full year 2025. Per-Ola Holmstrom stated, "We see possibilities to increase the margin towards 13%." The company's strong financial position, with a debt ratio of 0.6x EBITDA, provides flexibility for future expansions and acquisitions.

Valuation and Metrics

Nolato's current valuation metrics indicate a reasonable price for the stock. The P/E Ratio stands at 21.83, while the EV/EBITDA ratio is 12.15. The company's Return on Equity (ROE) is 13.47%, and Return on Invested Capital (ROIC) is 10.3%. The Net Debt / EBITDA ratio is 0.87, indicating a healthy balance sheet. With a Dividend Yield of 2.51%, the stock offers an attractive income stream. Overall, Nolato's strong financial performance, growth prospects, and reasonable valuation make it an attractive investment opportunity.

3. NewsRoom

Nolato AB (NLTBF) Q4 2025 Earnings Call Highlights: Resilient Growth Amid Currency Challenges

Feb -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Medical Solutions

Expected Growth: 5%

Nolato Medical Solutions' 5% growth is driven by increasing demand for medical devices, expansion into emerging markets, and strategic partnerships. Additionally, investments in R&D and manufacturing capabilities have improved efficiency and enabled the company to capitalize on trends such as minimally invasive surgeries and personalized medicine.

Industrial Solutions

Expected Growth: 7%

Nolato AB's Industrial Solutions segment growth is driven by increasing demand for medical devices, electrification of vehicles, and rising adoption of renewable energy sources. The company's expertise in silicone and plastic component manufacturing, coupled with its strong customer relationships and investments in R&D, have enabled it to capitalize on these trends, resulting in a 7% growth rate.

Integrated Solutions

Expected Growth: 5%

Nolato AB's Integrated Solutions segment growth is driven by increasing demand for complex medical devices, strategic acquisitions, and expansion into high-growth markets. Additionally, the company's focus on innovation, operational efficiency, and customer partnerships contribute to its 5% growth rate.

7. Detailed Products

Medical Solutions

Nolato AB provides medical solutions such as medical devices, diagnostic equipment, and pharmaceutical packaging.

Integrated Solutions

Nolato AB offers integrated solutions for industrial and consumer applications, including electronics, automotive, and industrial components.

Industrial Solutions

Nolato AB provides industrial solutions such as industrial components, machinery, and equipment.

Consumer Solutions

Nolato AB offers consumer solutions such as consumer electronics, appliances, and packaging solutions.

8. Nolato AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Nolato AB (publ) is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of customers in the automotive and medical industries, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and diversified supplier base, reducing dependence on individual suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the industry, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	23.44%
Debt Cost	4.30%
Equity Weight	76.56%
Equity Cost	8.80%
WACC	7.75%
Leverage	30.61%

11. Quality Control: Nolato AB (publ) passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

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

Mercedes-Benz

A-Score: 6.4/10

Value: 7.2

Growth: 8.8

Quality: 5.9

Yield: 2.5

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

GPI

A-Score: 6.0/10

Value: 5.4

Growth: 6.8

Quality: 3.1

Yield: 8.1

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

Nolato

A-Score: 5.4/10

Value: 3.2

Growth: 4.3

Quality: 5.7

Yield: 7.5

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Arendals Fossekompani

A-Score: 5.3/10

Value: 6.0

Growth: 4.8

Quality: 7.6

Yield: 5.0

Momentum: 3.0

Volatility: 5.3

1-Year Total Return ->

Bergman & Beving

A-Score: 4.1/10

Value: 4.8

Growth: 3.3

Quality: 2.7

Yield: 3.1

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

BayWa

A-Score: 3.5/10

Value: 10.0

Growth: 4.3

Quality: 5.4

Yield: 1.2

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.75%

Nolato AB (publ) - SE0015962477

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NOLA

1.c. Company Highlights

Expensive

Lower Growth

Higher Yield

Earnings Beats

Revenues Beats

Strong Momentum

Average Yield

Stable Momentum

Fairly Valued

Average Growth

Earnings Miss

Revenues Miss

Average Quality

2. Nolato's Q3 2025 Earnings: Strong Margin Expansion and Growth

Business Area Performance

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Medical Solutions

Expected Growth: 5%

Industrial Solutions

Expected Growth: 7%

Integrated Solutions

Expected Growth: 5%

7. Detailed Products

Medical Solutions

Integrated Solutions

Industrial Solutions

Consumer Solutions

8. Nolato AB (publ)'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: Nolato AB (publ) passed 4 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

51.45$

Current Price

51.45$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA