Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: €6.82B
• Dividend Yield: 25.47%
• Average Volume (3M): 635.81K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.32
• Revenue Growth: -4.16%
• EPS Growth: -50.90%
• Country: SE
• Employees: 6,199
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 0.29
• Shares Outstanding: 268,754,760
• 10 Day Avg. Volume: 533,695
• 30 Day Avg. Volume: 635,808
• PEG Ratio: -3.79
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.99
• 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: €29.01
• Price Target Upside: 13.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: kr27.00 ▲(5.72%Upside)

The overall stock score reflects a mixed outlook. Strong financial performance with effective cash flow management is a positive, but bearish technical indicators and a relatively high P/E ratio contribute to a cautious stance.

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 primarily through the provision of installation services in the construction and industrial sectors. The company's revenue streams are diversified across its various subsidiaries that specialize in different aspects of building technology services, including electrical installations, heating and plumbing, ventilation, and cooling systems. Instalco's earnings are driven by both new construction projects and the maintenance and renovation of existing buildings. Additionally, the company benefits from strategic partnerships with suppliers and contractors, which enhance its service offerings and project execution capabilities. Instalco's focus on energy-efficient and sustainable solutions further strengthens its market position and attracts a growing customer base committed to sustainability.

Instalco AB Financial Statement Overview

Summary

Instalco AB shows solid revenue growth and efficient cash flow management. However, the company faces challenges in profitability and a declining ROE, which are areas for improvement.

Income Statement

Instalco AB has demonstrated solid revenue growth over recent years, with notable increases from 2020 to 2023. The TTM gross profit margin stands at approximately 40.37%, while the net profit margin is 2.19%. Despite a declining net income in TTM compared to previous years, the company maintains a positive EBIT margin of 4.13% and EBITDA margin of 8.10%, indicating efficient cost management relative to revenues. However, the recent decline in net income suggests challenges in maintaining profitability, impacting overall income statement performance.

Balance Sheet

The company's debt-to-equity ratio has improved, standing at 0.21 in TTM, reflecting a stable financial structure with manageable leverage. The equity ratio is healthy at 32.21%, indicating a strong asset base relative to liabilities. ROE in TTM is lower at 9.17%, suggesting potential challenges in maximizing shareholder returns. While the balance sheet reflects stability, the declining ROE is a concern for future growth prospects.

Cash Flow

Instalco AB's free cash flow has exhibited growth, with TTM free cash flow at SEK 813 million. The operating cash flow to net income ratio is strong at 3.23, indicating effective cash generation from operations. The free cash flow to net income ratio of 2.70 further supports the company's ability to generate cash relative to reported earnings. Overall, the cash flow analysis reflects robust cash generation capabilities, despite fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.74B	13.69B	14.28B	12.06B	8.89B	7.12B
Gross Profit	5.55B	7.23B	7.06B	5.88B	4.34B	3.40B
EBITDA	1.11B	1.24B	1.49B	1.15B	926.00M	750.00M
Net Income	301.00M	345.00M	601.00M	520.00M	546.00M	456.00M
Balance Sheet
Total Assets	10.19B	10.31B	10.72B	9.57B	7.59B	5.23B
Cash, Cash Equivalents and Short-Term Investments	87.00M	208.00M	267.00M	631.00M	696.00M	386.00M
Total Debt	676.00M	3.66B	3.72B	3.13B	2.34B	1.29B
Total Liabilities	6.72B	6.93B	7.33B	6.42B	5.09B	3.26B
Stockholders Equity	3.28B	3.21B	3.21B	2.94B	2.48B	1.96B
Cash Flow
Free Cash Flow	813.00M	821.00M	890.00M	689.00M	584.00M	672.00M
Operating Cash Flow	971.00M	946.00M	999.00M	753.00M	610.00M	689.00M
Investing Cash Flow	-461.00M	-297.00M	-1.29B	-1.08B	-971.00M	-584.00M
Financing Cash Flow	-481.00M	-706.00M	-85.00M	240.00M	657.00M	-12.00M

Instalco AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INSTAL, the sentiment is Neutral. The current price of 25.54 is above the 20-day moving average (MA) of 24.46, below the 50-day MA of 26.06, and below the 200-day MA of 31.21, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 69.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:INSTAL.

Instalco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSTAL	64 Neutral	€6.82B	23.26	8.49%	25.47%	-4.16%	-50.90%
Sector *	58 Neutral	$1.34B	4.20	-2.93%	7.41%	3.67%	-51.13%
0MWK		kr15.31B	44.66	4.65%	2.70%	―	―
0OFP		kr15.71B	11.43	19.89%	43.71%	―	―
0MHT		kr22.82B	10.79	13.64%	3.88%	―	―
52SA		€1.60B	27.17	11.86%	1.38%	―	―
E5E		€154.34M	―	-2.77%	―	―	―

Instalco AB Corporate Events

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.

Instalco AB Announces CEO Transition as Robin Boheman Steps Down

Instalco AB announced that Robin Boheman will step down as CEO after eleven years with the company, including four years as CEO. The Chairman of the Board, Per Sjöstrand, will serve as interim CEO while the search for a permanent replacement begins. Under Boheman’s leadership, Instalco strengthened its position in Northern Europe, expanded into Germany, and launched an automation business. The company now looks forward to a new phase focused on profitability and development.

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 Baker Hansen Expansion in Oslo

Instalco’s Norwegian subsidiaries, Klimateknikk Oslo AS, Vito Teknisk Entreprenør AS, and Istech AS, have secured a joint contract worth approximately SEK 30 million for the design and installation of heating, plumbing, ventilation, and cooling systems at Baker Hansen in Oslo. This project, which aims to expand the bakery’s capacity and facilities, highlights Instalco’s collaborative approach and commitment to high-quality standards, with completion expected by spring 2026 and a goal of achieving Sustainable Instalco Project certification.

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 Approves Key Resolutions at Annual General Meeting

Instalco AB held its annual general meeting, where all board and nomination committee proposals were approved. Key resolutions included the adoption of financial statements, a dividend of SEK 0.68 per share, re-election of board members, and approval of a long-term incentive program with warrants for senior management. The meeting also authorized the board to issue shares, convertible bonds, and warrants, with restrictions on the total number of shares and acquisitions. These resolutions aim to strengthen Instalco’s operational capabilities and strategic flexibility, potentially enhancing its market position and shareholder value.