Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: €6.36B
• Dividend Yield: 2.76%
• Average Volume (3M): 619.25K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.19
• Revenue Growth: -3.68%
• EPS Growth: -48.79%
• Country: SE
• Employees: 6,199
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.24
• Shares Outstanding: 268,754,760
• 10 Day Avg. Volume: 663,472
• 30 Day Avg. Volume: 619,254
• PEG Ratio: -0.59
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 10.59
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr23.50 ▼(-4.78% Downside)

Instalco AB's overall stock score is primarily influenced by its solid financial performance, particularly strong cash flow generation and efficient cost management. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The lack of earnings call data and corporate events leaves these areas unassessed.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides a buffer against financial challenges, supporting long-term stability.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative leverage, enhancing financial stability and flexibility for future growth opportunities.

Gross Profit Margin

A high gross profit margin indicates effective cost management and operational efficiency, supporting long-term profitability.

Negative Factors

Revenue Growth Decline

Negative revenue growth indicates declining sales, which could impact market position and long-term business expansion.

Decreased Profitability

A declining net profit margin suggests challenges in converting revenue into profit, potentially affecting shareholder returns.

Return on Equity Decline

A lower return on equity indicates reduced profitability for shareholders, which may impact investor confidence and capital attraction.

Instalco AB Business Overview & Revenue Model

Company Description

Instalco AB (INSTAL) is a Swedish installation company that operates primarily in the Nordic region, specializing in electrical, plumbing, and HVAC (heating, ventilation, and air conditioning) services. The company serves a diverse range of sectors, including residential, commercial, and industrial markets, providing solutions that enhance energy efficiency and sustainability. Instalco offers a comprehensive portfolio of services, including installation, maintenance, and service of technical systems, ensuring high-quality solutions tailored to customer needs.

How the Company Makes Money

Instalco generates revenue primarily through its installation and maintenance services in electrical, plumbing, and HVAC sectors. The company operates through a decentralized structure, allowing its subsidiaries to pursue local projects and build strong relationships with clients. Key revenue streams include contracts for new construction projects, ongoing maintenance agreements, and retrofitting existing systems to improve energy efficiency. Instalco also benefits from partnerships with various suppliers and manufacturers, enabling access to advanced technologies and enhancing service offerings. Additionally, the company's focus on sustainability and energy efficiency positions it favorably in a market increasingly driven by environmental considerations.

Instalco AB Financial Statement Overview

Summary

Instalco AB demonstrates a solid financial foundation with strong cash flow generation and efficient cost management. However, challenges in revenue growth and profitability are evident, as shown by declining net profit margins and return on equity. The balance sheet remains strong with low leverage, providing stability.

Income Statement

Instalco AB's income statement shows a mixed performance. The company has maintained a strong gross profit margin of over 50% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 2.14% from 4.21% in 2023, reflecting challenges in converting revenue into profit. Revenue growth has been negative in the TTM, suggesting a potential slowdown in sales. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, showcasing operational efficiency.

Balance Sheet

The balance sheet of Instalco AB reflects a stable financial position with a low debt-to-equity ratio of 0.20 in the TTM, indicating conservative leverage. The return on equity has decreased to 9.04% from 18.74% in 2023, suggesting reduced profitability for shareholders. The equity ratio remains healthy, indicating a strong capital structure. However, the decline in ROE is a concern for investor returns.

Cash Flow

Instalco AB's cash flow statement is robust, with a significant increase in free cash flow growth in the TTM. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 1.0 in the TTM highlights the company's ability to convert earnings into cash effectively. This strong cash flow performance provides a buffer against potential financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.48B	13.69B	14.28B	12.06B	8.89B	7.12B
Gross Profit	7.23B	7.23B	7.06B	5.88B	4.34B	3.40B
EBITDA	1.06B	1.24B	1.46B	1.13B	912.00M	742.00M
Net Income	278.00M	345.00M	601.00M	520.00M	546.00M	456.00M
Balance Sheet
Total Assets	10.24B	10.31B	10.72B	9.57B	7.59B	5.23B
Cash, Cash Equivalents and Short-Term Investments	67.00M	208.00M	267.00M	631.00M	696.00M	386.00M
Total Debt	3.84B	3.66B	3.72B	3.13B	2.34B	1.29B
Total Liabilities	6.91B	6.93B	7.33B	6.42B	5.09B	3.26B
Stockholders Equity	3.17B	3.21B	3.21B	2.94B	2.48B	1.96B
Cash Flow
Free Cash Flow	1.03B	821.00M	890.00M	689.00M	584.00M	672.00M
Operating Cash Flow	1.03B	946.00M	999.00M	753.00M	610.00M	689.00M
Investing Cash Flow	-333.00M	-297.00M	-1.29B	-1.08B	-971.00M	-584.00M
Financing Cash Flow	-752.00M	-706.00M	-85.00M	240.00M	657.00M	-12.00M

Instalco AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.68
• 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 24.68 is above the 20-day moving average (MA) of 23.44, above the 50-day MA of 24.40, and below the 200-day MA of 26.40, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 67.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.10 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
BYGGP	70 Outperform	kr1.55B	18.98	―	1.23%	4.25%	127.31%
AFRY	69 Neutral	$18.31B	19.86	6.97%	4.02%	-3.73%	-22.34%
NORB.B	64 Neutral	€746.95M	58.81	1.98%	―	4.24%	29.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INSTAL	59 Neutral	€6.36B	24.64	8.12%	2.76%	-3.68%	-48.79%
FG	54 Neutral	kr1.45B	-943.86	―	―	8.40%	-101.19%
VESTUM	50 Neutral	€3.16B	-108.94	-0.85%	―	-27.41%	49.11%

Instalco AB Corporate Events

Instalco Secures SEK 68 Million Contract for Solna Link Project

Instalco’s subsidiary, Ohmegi Elektro AB, has secured a contract with Skanska for electrical installations in the Solna Link office complex near Stockholm. The project, valued at approximately SEK 68 million, involves high sustainability standards and is expected to be completed by Q4 2027, enhancing Instalco’s industry positioning and collaboration with Skanska.

Instalco Secures Major Electrical Contract for New Aker Hospital

Instalco’s subsidiary, Lysteknikk Elektroentreprenør AS, has secured a significant contract with Helse Sør-Øst RHF for electrical installations at the New Aker Hospital in Oslo, valued at approximately NOK 440 million. This project, which involves a comprehensive technical turnkey contract, is a major development in Norway’s healthcare infrastructure and is expected to enhance Instalco’s industry positioning by showcasing its capability in handling large-scale, socially significant projects.

Instalco AB Announces Nomination Committee for 2026 AGM

Instalco AB has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, which includes members appointed by the largest shareholders and the Chairman of the Board. This committee will play a crucial role in shaping the company’s leadership and strategic direction, potentially impacting its market positioning and stakeholder relations.

Instalco AB Restructures Amidst Declining Sales to Boost Future Growth

Instalco AB reported a decline in net sales and profitability for the first nine months of 2025, with a 2.5% decrease in net sales and a significant drop in EBITA. The company is restructuring its organization to improve margins and operational efficiency, focusing on a country-based structure and enhancing leadership accountability. Despite current challenges, Instalco is optimistic about future growth, driven by its expanding order backlog and strategic acquisitions, particularly in the German market.

Instalco Secures Major Electrical Installation Contract in Oslo

Instalco’s subsidiary, Lysteknikk AS, has secured a significant contract for electrical installations in two office buildings in Skøyen, Oslo, valued at approximately NOK 60 million. This project, in collaboration with Vedal Entreprenør and SpareBank 1 Forsikring Eiendom, is part of a broader renovation effort in one of Oslo’s largest office districts, aiming for high environmental standards with BREEAM-NOR certification.

Instalco to Present Q3 2025 Interim Report

Instalco is set to release its interim report for the third quarter of 2025 on October 24th. The report will be presented by President and CEO Per Sjöstrand and CFO Christina Kassberg in a live webcast and teleconference, allowing analysts and investors to engage directly. This announcement is significant for stakeholders as it provides insights into the company’s quarterly performance and strategic direction.

Instalco Secures Major Contract for NRK’s New Broadcasting Facility in Oslo

Instalco’s subsidiary, Lysteknikk AS, has secured a contract for the electrical installations at NRK’s new radio and TV broadcasting headquarters in Oslo, a project led by general contractor Hent AS. Scheduled for completion in 2029, this technologically advanced facility will replace NRK’s outdated premises and is expected to incorporate energy-efficient and sustainable solutions, enhancing Instalco’s industry positioning and showcasing its expertise in complex projects.