Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: kr7.29B
• Dividend Yield: 2.67%
• Average Volume (3M): 619.25K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr23.50 ▼(-9.13% 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 (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 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: 25.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 25.86 is above the 20-day moving average (MA) of 25.28, above the 50-day MA of 24.14, and below the 200-day MA of 25.89, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 95.27 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
AFRY	69 Neutral	kr17.52B	19.00	6.97%	4.09%	-3.73%	-22.34%
NORB.B	64 Neutral	kr749.82M	31.51	1.98%	―	4.24%	29.69%
BYGGP	64 Neutral	kr1.83B	16.84	―	1.24%	4.25%	127.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INSTAL	59 Neutral	kr7.29B	28.24	8.12%	2.67%	-3.68%	-48.79%
FG	54 Neutral	kr1.64B	-1,020.13	―	―	8.40%	-101.19%
VESTUM	50 Neutral	kr3.06B	-105.44	-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.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK23.50 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

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.

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 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.

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 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.

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 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.

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.