Goodtech ASA

Goodtech ASA maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.25 and a current ratio of 1.05, indicating moderate liquidity risk. The company's liquidity position is further supported by 46.1 million NOK in cash and equivalents, though this is partially offset by 71.9 million NOK in long-term debt, resulting in a net cash position of -25.8 million NOK. The price-to-book ratio of 1.24 suggests that the company's market value is slightly above its book value, while the price-to-tangible-book ratio is identical, indicating no significant intangible asset premium.

Profitability metrics for Goodtech are modest, with a return on equity (ROE) of 2.43% and a return on assets (ROA) of 1.22%, both below the industry median for industrial machinery firms. The company's operating margin is 4.78% (108 million NOK operating income on 2.26 billion NOK revenue), and its net margin is 0.31%, reflecting high operating costs and limited pricing power. Gross profit of 143.7 million NOK on 2.26 billion NOK in revenue yields a gross margin of 63.6%, which is in line with industry norms.

Geographically, Goodtech's revenue is concentrated in a few key markets, with no disclosed breakdown of regional contributions. The company's exposure to the oil and gas sector is significant, which introduces cyclical risk tied to commodity prices and global energy demand. Segment-wise, the company operates as a single business unit, with no material diversification across product lines or geographic regions.

Looking ahead, Goodtech's revenue is projected to grow by 8.5% in the current fiscal year and 12.3% in the next, driven by increased demand in the energy transition and industrial automation markets. However, the company's operating cash flow remains negative at -68 million NOK, which could constrain its ability to fund growth without external financing. Free cash flow of 15.4 million NOK is modest and insufficient to cover capital expenditures of 1.6 million NOK, suggesting limited financial flexibility.

Risk factors for Goodtech include moderate liquidity risk due to its net cash position and a current ratio near 1.0, as well as potential dilution risk if the company issues additional shares to fund operations or expansion. The company's low dilution risk is supported by a lack of recent share issuance and a diluted share count equal to the basic share count.

Recent events include a Q4 earnings report that showed a 12% year-over-year revenue increase, driven by higher demand in the energy sector. Analysts have issued a mean price target of 13.00 NOK, with a median recommendation of 2.00 (hold), indicating a neutral outlook.

Free cash flow surged 26% year-over-year to NOK 49.5 million in FY2026, demonstrating strong operational cash generation capabilities.

Operating income nearly doubled with a 94.7% year-over-year increase to NOK 36.6 million, signaling improving core profitability.

Gross profit expanded to NOK 519.3 million in FY2026, reflecting a robust top-line performance and margin expansion.

The single analyst consensus price target of NOK 13.0 implies a 16.1% upside from the current market price.

Long-term debt decreased significantly from NOK 101.4 million in FY2022 to NOK 63.0 million in FY2026, reducing leverage risk.

Cash conversion metrics place the company in the bottom quartile of its peer group, suggesting potential working capital inefficiencies.

The company faces medium liquidity and credit risks, which could constrain financial flexibility during economic downturns.

Revenue growth slowed to just 0.9% year-over-year in FY2026, indicating a potential plateau in top-line expansion.

Revenue kr 195.2M, +29,8% YoY; Operating income +20,0% YoY.

• ▍Revenue kr 195.2M, +29,8% YoY
• ▍Operating income +20,0% YoY
• ▍Net income +147,7% YoY
• ▍Free cash flow +5,8% YoY
• ▍Net margin 6.5%

Revenue kr 167.9M, +16,0% YoY; Operating income +58,9% YoY.

• ▍Revenue kr 167.9M, +16,0% YoY
• ▍Operating income +58,9% YoY
• ▍Net income +284,6% YoY
• ▍Free cash flow +13,4% YoY
• ▍Net margin 4.3%

Revenue kr 163.9M, −14,2% YoY; Operating income +129,2% YoY.

• ▍Revenue kr 163.9M, −14,2% YoY
• ▍Operating income +129,2% YoY
• ▍Net income +200,0% YoY
• ▍Free cash flow +15,8% YoY
• ▍Net margin 1.0%

Revenue kr 194.2M, −14,0% YoY; Operating income −16,7% YoY.

• ▍Revenue kr 194.2M, −14,0% YoY
• ▍Operating income −16,7% YoY
• ▍Net income −137,1% YoY
• ▍Free cash flow −24,7% YoY
• ▍Net margin -1.3%

Revenue kr 150.4M; Operating income kr 11.0M.

• ▍Revenue kr 150.4M
• ▍Operating income kr 11.0M
• ▍Net margin -17.7%

Revenue kr 144.7M; Operating income kr 5.6M.

• ▍Revenue kr 144.7M
• ▍Operating income kr 5.6M
• ▍Net margin -2.7%

Revenue kr 191.1M; Operating income kr 2.4M.

• ▍Revenue kr 191.1M
• ▍Operating income kr 2.4M
• ▍Net margin -0.9%

Revenue kr 225.9M; Operating income kr 10.8M.

• ▍Revenue kr 225.9M
• ▍Operating income kr 10.8M
• ▍Net margin 3.1%

Revenue kr 721.2M, +0,9% YoY; Operating income +94,7% YoY.

• ▍Revenue kr 721.2M, +0,9% YoY
• ▍Operating income +94,7% YoY
• ▍Net income +174,7% YoY
• ▍Free cash flow +25,9% YoY
• ▍Net margin 2.6%

Revenue kr 714.8M, −1,6% YoY; Operating income +51,6% YoY.

• ▍Revenue kr 714.8M, −1,6% YoY
• ▍Operating income +51,6% YoY
• ▍Net income −412,4% YoY
• ▍Free cash flow +63,8% YoY
• ▍Net margin -3.5%

Revenue kr 726.8M, +43,1% YoY; Operating income +527,5% YoY.

• ▍Revenue kr 726.8M, +43,1% YoY
• ▍Operating income +527,5% YoY
• ▍Net income +875,9% YoY
• ▍Free cash flow +2 723,5% YoY
• ▍Net margin 1.1%

Revenue kr 507.8M, −5,3% YoY; Operating income +112,8% YoY.

• ▍Revenue kr 507.8M, −5,3% YoY
• ▍Operating income +112,8% YoY
• ▍Net income +93,7% YoY
• ▍Free cash flow +113,0% YoY
• ▍Net margin -0.2%