OM:INSTAL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Instalco AB (publ) provides installation services in the heating and plumbing, electrical, ventilation, cooling, and industrial areas in Sweden and rest of Nordic. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Instalco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INSTAL is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: INSTAL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

INSTAL

2.7%

SE Construction

1.1%

SE Market


1 Year Return

141.1%

INSTAL

13.1%

SE Construction

30.9%

SE Market

Return vs Industry: INSTAL exceeded the Swedish Construction industry which returned 8.6% over the past year.

Return vs Market: INSTAL exceeded the Swedish Market which returned 28.3% over the past year.


Shareholder returns

INSTALIndustryMarket
7 Day0.6%2.7%1.1%
30 Day11.3%-3.5%0.9%
90 Day39.7%-0.3%8.8%
1 Year145.4%141.1%15.9%13.1%34.1%30.9%
3 Year519.5%486.6%59.7%44.1%54.6%35.6%
5 Yearn/a54.8%16.8%84.9%45.3%

Long-Term Price Volatility Vs. Market

How volatile is Instalco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Instalco undervalued compared to its fair value and its price relative to the market?

34.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INSTAL (SEK311.5) is trading above our estimate of fair value (SEK227.96)

Significantly Below Fair Value: INSTAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INSTAL is poor value based on its PE Ratio (34.1x) compared to the SE Construction industry average (32.3x).

PE vs Market: INSTAL is poor value based on its PE Ratio (34.1x) compared to the Swedish market (23.9x).


Price to Earnings Growth Ratio

PEG Ratio: INSTAL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: INSTAL is overvalued based on its PB Ratio (8.2x) compared to the SE Construction industry average (3.2x).


Next Steps

Future Growth

How is Instalco forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INSTAL's forecast earnings growth (14.9% per year) is above the savings rate (0.4%).

Earnings vs Market: INSTAL's earnings (14.9% per year) are forecast to grow faster than the Swedish market (8.3% per year).

High Growth Earnings: INSTAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: INSTAL's revenue (11.7% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: INSTAL's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INSTAL's Return on Equity is forecast to be high in 3 years time (23.1%)


Next Steps

Past Performance

How has Instalco performed over the past 5 years?

39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INSTAL has high quality earnings.

Growing Profit Margin: INSTAL's current net profit margins (6.5%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: INSTAL's earnings have grown significantly by 39.9% per year over the past 5 years.

Accelerating Growth: INSTAL's earnings growth over the past year (24.8%) is below its 5-year average (39.9% per year).

Earnings vs Industry: INSTAL earnings growth over the past year (24.8%) underperformed the Construction industry 30.8%.


Return on Equity

High ROE: INSTAL's Return on Equity (23.4%) is considered high.


Next Steps

Financial Health

How is Instalco's financial position?


Financial Position Analysis

Short Term Liabilities: INSTAL's short term assets (SEK2.1B) exceed its short term liabilities (SEK1.9B).

Long Term Liabilities: INSTAL's short term assets (SEK2.1B) exceed its long term liabilities (SEK1.3B).


Debt to Equity History and Analysis

Debt Level: INSTAL's debt to equity ratio (55.7%) is considered high.

Reducing Debt: INSTAL's debt to equity ratio has reduced from 143.2% to 55.7% over the past 5 years.

Debt Coverage: INSTAL's debt is well covered by operating cash flow (62.7%).

Interest Coverage: INSTAL's interest payments on its debt are well covered by EBIT (68.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Instalco current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: INSTAL's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.23%).

High Dividend: INSTAL's dividend (0.87%) is low compared to the top 25% of dividend payers in the Swedish market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INSTAL has been paying a dividend for less than 10 years.

Growing Dividend: INSTAL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), INSTAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INSTAL's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

Per Sjostrand (62 yo)

no data

Tenure

kr2,532,000

Compensation

Mr. Per Sjöstrand serves as the Chief Executive Officer of Instalco Holding AB and Instalco AB (publ). Mr. Sjöstrand is Founder of Instalco AB (publ) (formerly known as Instalco Intressenter AB (publ) and ...


CEO Compensation Analysis

Compensation vs Market: Per's total compensation ($USD296.20K) is below average for companies of similar size in the Swedish market ($USD901.49K).

Compensation vs Earnings: Per's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Johnny Alvarsson
Independent Director5.17yrskr250.00k0.069%
SEK 11.0m
Camilla Oberg
Independent Director2.83yrskr400.00kno data
Carina Edblad
Independent Director2.83yrskr250.00kno data
Olof Ehrlen
Independent Chairman of the Board7.17yrskr500.00kno data
Carina Qvarngård
Independent Director2.83yrskr300.00kno data
Per Leopoldsson
Independent Director2.83yrskr300.00k0.012%
SEK 1.9m

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: INSTAL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: INSTAL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

Instalco AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Instalco AB (publ)
  • Ticker: INSTAL
  • Exchange: OM
  • Founded: 2013
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr16.009b
  • Shares outstanding: 51.23m
  • Website: https://instalco.se

Number of Employees


Location

  • Instalco AB (publ)
  • Lilla Bantorget 11
  • Stockholm
  • Stockholm County
  • 111 23
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INSTALOM (OMX Nordic Exchange Stockholm)YesClass A Ordinary SharesSESEKMay 2017
0RP5LSE (London Stock Exchange)YesClass A Ordinary SharesGBSEKMay 2017
4IIDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURMay 2017
INSTASBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Ordinary SharesGBSEKMay 2017

Biography

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 offers district heating, natu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 20:30
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.