EiDF, the company that shot up 560% in the last 18 months

EiDF (Energy, Innovation and Photovoltaic Development) is a clear example of what many analysts describe as undiscovered treasures on the Stock Market. In 2022 it achieved a revaluation of 480% and since its debut on the market, in July 2021, it accumulates a profit of 560%. This company is listed on the BME Growth, the segment of the Spanish Stock Market specializing in small securities, so it hardly has any follow-up by analysts in terms of recommendations, target prices or valuation and business prospects. His actions rise, but without making noise.

Behind this spectacular jump to the stock market –EiDF has only been listed for a year and a half– is a cutting-edge business: photovoltaic solar energy. EiDF is specialized in the installation of this type of panels for industrial and business self-consumption at a national level. Among its clients are BBVA, Fedex, Estrella Galicia, Amazon, Aena, ACS, Mercadona, Repsol and Naturgy, among a total of 4,000. According to estimates by the company itself, you can save up to 60% on your electricity bill with photovoltaic installations; In addition, the price of the necessary materials has been reduced by 77% in the last ten years.

Between January and September 2022 he achieved a turnover of 315.54 million euros, 932.86% above the same period of the previous year, and an ebitda of 46.86 million, 560% more. “We maintain a positive view of EiDF given its leadership position in the self-consumption business [19% de cuota de mercado], with very good growth prospects (the targets for 2022 have been exceeded just a few months after they were published), together with its business model integrated into renewables. We see the value as a very attractive investment opportunity in the renewable sector”, they explain from Alantra.

For its part, Gestión de Patrimonios Mobiliarios highlights that “EiDF maintains a solid financial position, with a debt/ebitda ratio of 1.19 times, and treasury with a net cash of 24 million. Its financial capacity allows to develop a business model based on PPA [power purchase agreement] self-consumption. They have guaranteed future growth: in self-consumption it has a portfolio of 305 projects to be built and in generation [su segunda línea de negocio] It has a pipeline of 2.6 GW”. Both opinions, that of Alantra and Gestión de Patrimonios Mobiliarios, belong to analyzes under the auspices of EiDF.

On the other hand, Beatriz Pérez and Jaime Vázquez, managers of the Renta 4 Megatendencias Medioambiente fund, acknowledge that they currently do not have the company in their portfolio, but they highlight the potential of the sector: “In Spain, solar self-consumption has doubled, installing more than 2,500 MW in 2022 (108% more than 2021). High electricity prices have encouraged both industrial companies and families to opt for self-consumption facilities to reduce costs.” But they warn of an increase in competition: “Currently there are other companies that are betting on residential self-consumption due to its high demand, such as the Portuguese Greenvolt, and we hope that many more will enter,” they say.

Meanwhile, Joaquín Robles, an analyst at XTB, pays attention “to the upcoming results, which will be decisive for the evolution of the share price, since a large part of the recent increases are driven by high growth expectations.” In addition, he recalls that the priority for this year is to go public, after reaching a value of 1,585 million euros.

EiDF has already started moving to make the leap in the first semester. The shareholders’ meeting approved a split in the proportion of four new shares for each old share last September. The current free float is 14.6%.