Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: kr6.86B
• Dividend Yield: 2.67%
• Average Volume (3M): 619.25K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.98
• 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: kr27.00 ▲(4.41% Upside)

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

Strong cash generation

Consistent conversion of earnings into cash provides durable financial flexibility for capex, working capital and acquisitions. Strong operating cash flow relative to net income reduces refinancing risk and supports reinvestment and dividend capacity over the medium term.

Conservative balance sheet

Low leverage gives the company structural resilience to cyclical downturns, enabling continued investment and M&A without stretching covenants. A healthy equity ratio supports credit access and limits refinancing pressure across the next several quarters.

Decentralized recurring services model

A network of specialized subsidiaries delivering both project and recurring maintenance creates stable, diversified revenue streams and local customer relationships. Cross-selling and repeat service work support customer retention and steadier cash flows over time.

Negative Factors

Negative recent revenue trend

Sustained revenue contraction weakens scale economics and puts pressure on margins and utilization. If the top-line trend continues, it will constrain organic growth, reduce ability to fund acquisitions internally, and challenge medium-term profitability targets.

Declining net profit margin

A near halving of net margin signals erosion in conversion of revenues to shareholder returns, reducing retained earnings and free cash flow cushion. Margin pressure may reflect competitive pricing, cost inflation, or inefficiencies that harm sustainable profitability.

Falling return on equity

A sharp drop in ROE indicates diminished effectiveness in generating shareholder returns from capital. If ROE remains depressed, it will limit long-term attractiveness to investors, reduce capacity to self-fund growth, and may necessitate strategic changes to restore returns.

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: Negative
• Last Price: 25.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 25.86 is below the 20-day moving average (MA) of 26.19, above the 50-day MA of 24.85, and above the 200-day MA of 25.60, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 58.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	kr15.90B	17.24	6.97%	4.09%	-3.73%	-22.34%
NORB.B	64 Neutral	kr838.53M	35.23	1.98%	―	4.24%	29.69%
BYGGP	64 Neutral	kr1.95B	17.97	―	1.24%	4.25%	127.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INSTAL	59 Neutral	kr6.86B	26.56	8.12%	2.67%	-3.68%	-48.79%
FG	54 Neutral	kr1.44B	-899.33	―	―	8.40%	-101.19%
VESTUM	50 Neutral	kr3.02B	-104.02	-0.85%	―	-27.41%	49.11%

Instalco AB Corporate Events

Instalco wins SEK 130 million HVAC contract for Sturekvarteret redevelopment in central Stockholm

Instalco’s subsidiary LG Contracting has secured a SEK 130 million contract for heating and plumbing installations in the extensive renovation and redevelopment of Sturekvarteret around Stureplan in central Stockholm. The project, commissioned by Peab and Sturegallerian AB, covers the Sturegallerian shopping center with its retail, office and residential premises and involves integrating modern, energy‑efficient systems into historically significant buildings. LG Contracting will deliver a technologically advanced substation and a hybrid heating solution combining district heating and heat pumps, with cooling provided through free cooling tied to the district cooling network, using both visible and concealed installations to respect the site’s architecture. Sustainability, reuse and historical conservation are central to the assignment, which has already begun and is scheduled for completion in 2027, underscoring Instalco’s role in complex, high‑profile urban redevelopment projects in the Nordics.

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 Sets Date for Q4 and Full-Year 2025 Earnings Presentation

Instalco AB has announced that it will publish its fourth-quarter and full-year 2025 results on 12 February 2026 at around 07:30 CET, followed by a live webcast and teleconference presentation at 09:30 CET hosted by President and CEO Per Sjöstrand and CFO Christina Kassberg. The company is providing online access to the event and making the report and presentation materials available for download on its investor relations website, underlining its ongoing focus on transparency and accessibility for analysts and investors ahead of a key financial update.

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 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.