As of May 22, 2025, Newton Nordic AB has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.52, this represents a potential upside of -277.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -229.0% |
| Potential Upside (10-year) | -277.3% |
| Discount Rate (WACC) | 4.9% - 7.6% |
Revenue is projected to grow from $10 million in 12-2020 to $18 million by 12-2030, representing a compound annual growth rate of approximately 6.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2020 | 10 | 22% |
| 12-2021 | 6 | -44% |
| 12-2022 | 7 | 19% |
| 12-2023 | 8 | 24% |
| 12-2024 | 9 | 14% |
| 12-2025 | 11 | 13% |
| 12-2026 | 12 | 13% |
| 12-2027 | 14 | 12% |
| 12-2028 | 15 | 11% |
| 12-2029 | 16 | 8% |
| 12-2030 | 18 | 11% |
Net profit margin is expected to improve from -37% in 12-2020 to -25% by 12-2030, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2020 | (4) | -37% |
| 12-2021 | (2) | -28% |
| 12-2022 | (2) | -27% |
| 12-2023 | (2) | -27% |
| 12-2024 | (2) | -26% |
| 12-2025 | (3) | -25% |
| 12-2026 | (3) | -25% |
| 12-2027 | (3) | -25% |
| 12-2028 | (4) | -25% |
| 12-2029 | (4) | -25% |
| 12-2030 | (4) | -25% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 18% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2021 | 2 |
| 12-2022 | 2 |
| 12-2023 | 1 |
| 12-2024 | 1 |
| 12-2025 | 1 |
| 12-2026 | 2 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 32 |
| Days Inventory | 626 |
| Days Payables | 117 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2021 | (0) | (0) | 1 | (2) | 1 |
| 2022 | (0) | (1) | 1 | 0 | (2) |
| 2023 | (1) | (1) | 1 | 1 | (2) |
| 2024 | (1) | (1) | 2 | 0 | (2) |
| 2025 | (1) | (1) | 2 | 0 | (3) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -229.0% |
| 10-Year DCF (Growth) | 0.00 | -277.3% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Newton Nordic AB (NEWTON.ST) a buy or a sell? Newton Nordic AB is definitely a sell. Based on our DCF analysis, Newton Nordic AB (NEWTON.ST) appears to be overvalued with upside potential of -277.3%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.52.