Ecoclime is a growing and profitable property technology company with exposure to structural sustainability trends such as improving properties\u2019 energy efficiency and indoor climate. The company\u2019s products strike a balance between environmental and financial incentives for property owners, allowing them to reduce energy usage and thereby cut costs. In our view, the main organic growth driver will be higher sales of Evertherm, a system that recycles thermal energy from wastewater and re-routes it back into the property. The company\u2019s other products include draft-free and silent ventilation panels that aim to replace conventional cooling beams, software that lets property owners monitor energy and air flows throughout the building and energy-efficient LED lighting products.<\/p>\n
We expect \u201922e-\u201924e net sales and adj. EBITDA CAGRs of 22% and 44%, respectively. Our estimates include adj. EBITDA margin expansion to 20% by \u201924e, which we argue will stem from: 1) a favourable product mix as high-margin Evertherm sales come to make up a larger share, and 2) scaling on fixed costs as the company plans to significantly boost production capacity in the coming years by expanding its factory in Vilhelmina. In addition to organic growth, M&A has been a key pillar of the growth strategy and Ecoclime has already added ~40% to sales and ~30% to adj. EBITDA on a pro forma basis in \u201922 through the acquisition of Milj\u00f6belysning. Furthermore, the company has signed LOIs to complete two more acquisitions.<\/p>\n
Using a peer valuation, an FCF yield valuation and a DCF model, all yielding similar results, we derive a fair value range of SEK 12-20 per share, corresponding to a \u201923e EV\/EBITDA (adj.) range of 8-14x (12-23x for \u201922e). By conducting two M&A scenarios, we conclude that further value-accretive M&A could increase the value range to SEK 23-34. The main risks to our estimates are increasing competition, M&A execution, and poorly executed expansion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Facilitating major energy and cost savings Ecoclime is a growing and profitable property technology company with exposure to structural sustainability trends such as improving properties\u2019 energy efficiency and indoor climate. The company\u2019s products strike a balance between environmental and financial incentives for property owners, allowing them to reduce energy usage and thereby cut costs. In […]<\/p>\n","protected":false},"featured_media":4885,"template":"","class_list":["post-4883","analysis","type-analysis","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/analysis\/4883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/analysis"}],"about":[{"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/types\/analysis"}],"version-history":[{"count":0,"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/analysis\/4883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/media\/4885"}],"wp:attachment":[{"href":"https:\/\/ecoclime.se\/de\/wp-json\/wp\/v2\/media?parent=4883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}