Ecoclime Group is an environmental technology company for the real estate market. The company delivers indoor climate with comfort guarantee, circular energy systems for recovery of heat from wastewater and standardization of data for property automation. The energy solutions are based on IoT technology that can be integrated with customers’ existing energy systems for heating and comfort cooling as well as building automation. Ecoclime is headquartered in Umeå, manufacturing in Vilhelmina and sales and project management based in Stockholm and Arvika.
Ecoclime is growing rapidly with increased profitability through newly acquired companies and an increased share of product sales, where Evertherm’s energy solutions are judged to have the greatest potential. We receive a target price of SEK 13.5 per share in our weighted Bas scenario, which gives an upside in the share of just over 60 percent.
Ecoclime sells and integrates products in properties for energy recovery as well as comfort cooling and indoor climates, primarily to property owners and municipalities. Sales take place via own channels and through acquisitions such as Flexibel Luftbehandling and H-Gruppen Totalinstallatör, which are ventilation and pipe companies that work with installations in the Stockholm region, and SDC Automation, which integrates and installs property automation with its own platform.
In 2018, Ecoclime launched a strategy for acquisition-driven growth. Company acquisitions are made at low profit multiples of 5-6x and make a positive profit contribution after interest expenses. Continued acquisitions from Ecoclime, but not all the way up to the company’s scenario, are included in my forecasts.
ECOCLIME Business model and growth strategy:
Target: 13.5 SEK