Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: €7.16B
• Dividend Yield: 2.55%
• Average Volume (3M): 607.60K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.28
• Revenue Growth: -3.99%
• EPS Growth: -49.97%
• Country: SE
• Employees: 6,199
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.46
• Shares Outstanding: 268,754,760
• 10 Day Avg. Volume: 1,388,968
• 30 Day Avg. Volume: 607,601
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €28.98
• Price Target Upside: 8.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: kr27.00 ▲(1.35% Upside)

Instalco AB's overall stock score reflects a solid financial foundation with strong gross margins and a conservative balance sheet. However, the stock faces challenges with declining net profit margins and revenue growth. Technical indicators suggest a bearish trend, and the valuation is moderate, offering a reasonable dividend yield but no significant discount. The absence of earnings call data and corporate events limits additional insights.

Instalco AB Business Overview & Revenue Model

Company Description

Instalco AB (publ) provides installation services in the heating and plumbing, electrical, ventilation, cooling, and industrial areas in Sweden and rest of Nordic. The company is involved in the designing, project planning, and assembly services for electricity; alarms and monitoring; data network and control of technical equipment; energy optimization through integrated property automation; charging posts for electric cars; remote reading; control technology and automatics; and related service and maintenance services to construction firms, property companies, government agencies, local authorities and regions, and housing and industrial companies. It also provides heating and plumbing services, including installation of district heating, natural gas, heat pumps, and comfort cooling; pipe replacement and preventative maintenance; water treatment and water consumption; sprinkler systems, and new construction; and ongoing repairs, service and maintenance, ROT work, and project planning services. In addition, the company offers ventilation services, such as installation and solutions for indoor climate, air treatment, and mandatory ventilation inspection; control technology and automatics; property automation; and project planning services. Future, the company engages in the installation of cooling and heating equipment, food, process, and comfort cooling services; and technical consulting services, as well as pipe installation, cooling installation, electric power installation, infrastructure, automation, instrumentation, emission control, exhaust gas cleaning, project planning, energy, and safety services. The company was formerly known as Instalco Intressenter AB (publ) and changed its name to Instalco AB (publ) in May 2019. Instalco AB (publ) was founded in 2013 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Instalco AB generates revenue through a combination of project-based contracts and ongoing service agreements. The company's key revenue streams include new installations, maintenance services, and upgrades of existing systems for residential, commercial, and industrial clients. Instalco often engages in partnerships with construction companies and property developers to secure large-scale projects that ensure steady income. Additionally, the company benefits from economies of scale by leveraging its extensive network of subsidiaries across the Nordic region to optimize operations and reduce costs, thereby enhancing profitability.

Instalco AB Financial Statement Overview

Summary

Instalco AB has a solid financial foundation with strong gross margins and a conservative balance sheet. However, declining net profit margins and negative revenue growth pose challenges. The company shows resilience in cash flow generation, but profitability and growth trends need attention.

Income Statement

Instalco AB's income statement shows a mixed performance. The TTM gross profit margin is strong at 53.1%, indicating efficient cost management. However, the net profit margin has declined to 2.1%, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, signaling potential demand issues. The EBIT and EBITDA margins have also decreased, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low TTM debt-to-equity ratio of 0.20, indicating conservative leverage. The return on equity is moderate at 9.0%, showing decent profitability relative to shareholder investment. The equity ratio is healthy, suggesting a strong capital structure. However, the decline in ROE from previous years highlights potential profitability concerns.

Cash Flow

Cash flow analysis reveals a positive trajectory with a significant TTM free cash flow growth of 24.8%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, reflecting consistent cash conversion. The free cash flow to net income ratio of 1.0 suggests efficient cash utilization. However, fluctuations in free cash flow growth in prior periods indicate potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.60B	13.69B	14.28B	12.06B	8.89B	7.12B
Gross Profit	7.22B	7.23B	7.06B	5.88B	4.34B	3.40B
EBITDA	1.08B	1.24B	1.49B	1.15B	926.00M	750.00M
Net Income	291.00M	345.00M	601.00M	520.00M	546.00M	456.00M
Balance Sheet
Total Assets	10.65B	10.31B	10.72B	9.57B	7.59B	5.23B
Cash, Cash Equivalents and Short-Term Investments	421.00M	208.00M	267.00M	631.00M	696.00M	386.00M
Total Debt	657.00M	3.66B	3.72B	3.13B	2.34B	1.29B
Total Liabilities	7.23B	6.93B	7.33B	6.42B	5.09B	3.26B
Stockholders Equity	3.22B	3.21B	3.21B	2.94B	2.48B	1.96B
Cash Flow
Free Cash Flow	1.01B	821.00M	890.00M	689.00M	584.00M	672.00M
Operating Cash Flow	1.01B	946.00M	999.00M	753.00M	610.00M	689.00M
Investing Cash Flow	-329.00M	-297.00M	-1.29B	-1.08B	-971.00M	-584.00M
Financing Cash Flow	-255.00M	-706.00M	-85.00M	240.00M	657.00M	-12.00M

Instalco AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INSTAL, the sentiment is Positive. The current price of 26.64 is above the 20-day moving average (MA) of 25.32, above the 50-day MA of 25.73, and below the 200-day MA of 28.58, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INSTAL.

Instalco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
INSTAL	62 Neutral	€7.16B	25.68	8.65%	2.55%	-3.99%	-49.97%
AFXXF	―	$1.87B	19.13	7.17%	4.32%	―	―
W0S	―	€277.97M	―	-1.10%	―	―	―
9LY	―	€59.66M	49.51	1.08%	―	―	―
BYGGP	70 Outperform	kr1.36B	16.59		1.67%	-2.11%	74.17%
FG	62 Neutral	kr1.99B	189.47		4.59%	3.60%	-100.91%

Instalco AB Corporate Events

Instalco Secures SEK 180 Million Contract for Kaj 16 Project

Instalco has secured a SEK 180 million contract for the Kaj 16 project in Gothenburg, a sustainable timber construction initiative by Vasakronan. The project involves electrical, telecommunications, and sprinkler installations, and is expected to be a landmark for sustainable urban development, with completion slated for summer 2027.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK26.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures Major Contract for Swedish Prison Facility

Instalco has secured a SEK 260 million contract for the design and installation of various systems at a new facility for the Swedish Prison and Probation Service in Västerås. This project, involving five Instalco subsidiaries, is part of a broader expansion of the Swedish Prison and Probation Service. The facility will house 200 detainees and include non-institutional care and training premises. The project is technically complex, requiring extensive system integration and high standards for security and reliability, and is expected to be completed by 2028.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK26.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Restructures to Enhance Local Operations

Instalco is restructuring its organization to a country-based model, effective September 1, 2025, to enhance management clarity and local presence. This change aims to improve profitability and operational excellence by establishing a COO role under each country manager and adjusting the external reporting structure to focus on Sweden, Norway, and Finland, starting January 1, 2026.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK28.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures Major Contract for University of Gothenburg Project

Instalco’s subsidiary, Elektro-Centralen AB, has been awarded a significant contract for electrical and telecom installations at the University of Gothenburg’s Artistic Faculty. The project, valued at approximately SEK 190 million, involves collaboration with Akademiska Hus and Skanska and focuses on sustainability and reuse. The construction aims to consolidate all art education at the university into one location, with the new buildings targeting high environmental certifications. The project is expected to be completed by 2028, potentially enhancing Instalco’s reputation in sustainable construction.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures SEK 60 Million Contract for Kalmar Prison Project

Instalco’s subsidiary, Elovent AB, has secured a contract for electrical installations at a new prison in Kalmar, Sweden, with a project value of approximately SEK 60 million. Partnering with Skanska, the project involves complex installations and collaboration with multiple parties, including the Swedish Prison and Probation Service, and is expected to be completed by Q3 2027.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK49.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco AB Reports Mixed Performance Amid Market Challenges in H1 2025

Instalco AB’s interim report for the first half of 2025 shows a slight decline in net sales and profitability, with a 1.9% decrease in net sales and a 29.8% drop in EBITA compared to the previous year. Despite challenging market conditions, the company is optimistic about future growth, supported by a growing order backlog and strategic acquisitions in Germany. The company also highlights its strong cash flow and new credit agreement, which provide a stable foundation for long-term operations. Additionally, Instalco’s commitment to sustainability is reinforced by its recent environmental certification in Norway.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK35.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures New SEK 3.4 Billion Credit Facility

Instalco has secured a new SEK 3.4 billion credit facility agreement with its existing banking consortium, replacing the previous arrangement. This agreement, which includes a term loan and a revolving credit facility with a two-year term and an extension option, ensures Instalco’s financial stability and supports its long-term business development, reinforcing its partnership with long-term financial partners.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK49.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures Major Contract for Skanska’s New Sustainable Head Office

Instalco’s subsidiary, Ohmegi Elektro AB, has secured a contract for electrical and telecom installations at Skanska’s new head office, Olivin, in Stockholm. The project, valued at approximately SEK 50 million, emphasizes sustainability with goals for LEED Platinum and NollCO2 certifications, requiring innovative approaches and collaboration to meet its complex demands.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK49.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.