EiDF (Energy, Innovation and Photovoltaic Development) is a clear example of what many analysts describe as an undiscovered treasure on the stock market. It achieved a revaluation of 480% in 2022 and posted a 560% gain in July 2021 since its launch in the market. The company is listed on BME Growth, the segment of the Spanish stock market specializing in smaller securities, so there is hardly any follow-up by analysts in terms of recommendations, target prices or valuations and business prospects. His movements arise, but without making noise.
Behind this spectacular jump in the stock market—EiDF has been listed for only a year and a half—is a cutting-edge business: photovoltaic solar power. EiDF is specialized in the installation of these types of panels for industrial and commercial self-consumption on a national scale. The 4,000 total customers include BBVA, FedEx, Estrella Galicia, Amazon, Ana, ACS, Mercadona, Repsol and Naturgy. According to the company’s own estimates, a photovoltaic installation can save you up to 60% on your electricity bill; In addition, the cost of essential materials has come down by 77% in the last ten years.
Between January and September 2022 they achieved Turnover of EUR 315.54 million, up 932.86% over the same period last year, and EBITDA of 46.86 million, up 560%, “We maintain a positive outlook on EIDF given its leadership position in the self-consumption business [19% de cuota de mercado], with very good growth prospects (2022 targets have been exceeded just months after being published), as well as its business model being integrated into renewable energy. We see value in the renewables sector as a very attractive investment opportunity”, he explains to Elantra.
For its part, Gestión de Patrimonios Mobiliarios highlighted that “EiDF maintains a solid financial position, with a debt/Ebitda ratio of 1.19 times, and coffers with net cash of 24 million. Its financial strength based on PPAs Allows to develop a business model [power purchase agreement] for own consumption. They have guaranteed future growth: it has a portfolio of 305 projects in construction and production in self-consumption [su segunda línea de negocio] It has a pipeline of 2.6 GW. Both opinions relate to the analysis, under the auspices of EiDF, of Elantra and Gestion de Patrimonios Mobilarios.
On the other hand, Beatriz Pérez and Jaime Vazquez, managers of the Renta 4 Megatendencias Medioambient fund, admit that they do not currently have the company in their portfolio, but they highlight the sector’s potential: “In Spain, solar self-consumption doubled is set to install more than 2,500 MW in 2022 (108% more than 2021). High electricity prices have encouraged both industrial companies and households to opt for self-consumption facilities to reduce costs. But they compete warns of an increase: “There are currently other companies betting on residential self-consumption because of its high demand, such as the Portuguese Greenvolt, and we expect many more to enter,” he says.
Meanwhile, Joaquin Robles, an analyst at XTB, noted “upcoming results will be decisive for the development of the share price, as a large part of the recent gains have been driven by higher growth expectations.” Also remember that after reaching a valuation of 1,585 million euros, this year’s priority is to go public.
EIDF has started to proceed in the first semester to get a jump start. The shareholders’ meeting last September approved the split in the ratio of four new shares for every old share held. The current free float is 14.6%.
