In this equity report, analysts Marcus Abbestam and Filip Blazevic take a deep-dive into Internationella Engelska Skolan (or “IES”), a leading independent school operator in Sweden that has recently expanded to Spain. Our analysts estimate a revenue growth of 13.0% CAGR 18/19-21/22E and a slightly reduced profit margin, implying a target price of SEK 82.9 with a potential upside of 16.8%.

Investment highlights:

  • Looking forward, the company is scheduled to open 6 new schools in Sweden and is also expected to acquire 4 Spanish schools between 19/20E and 21/22E.
  • Revenues per student are expected to grow with a CAGR of 2.4% between 19/20E and 21/22E due to increasing government grants and fees.
  • Acquisitions of Spanish schools with relatively low wages will moderate the aggregated growth in salaries.

To get the full elaborate view on the case, please see the report below: