A2A SPA (A2A.MI) Stock Fundamental Analysis
Europe - BIT:A2A - IT0001233417 - Common Stock
2.696 EUR
+0.03 (+1.16%)
We assign a fundamental rating of 4 out of 10 to A2A. A2A was compared to 14 industry peers in the Multi-Utilities industry. While A2A belongs to the best of the industry regarding profitability, there are concerns on its financial health. A2A has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year A2A was profitable.
In the past year A2A had a positive cash flow from operations.
In the past 5 years A2A has always been profitable.
A2A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.48%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of A2A (23.23%) is better than 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.89%, A2A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A2A had an Average Return On Invested Capital over the past 3 years of 6.04%. This is in line with the industry average of 6.47%.
The last Return On Invested Capital (11.89%) for A2A is above the 3 year average (6.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 23.23% | ||
| ROIC | 11.89% |
ROA(3y)3.24%
ROA(5y)3.1%
ROE(3y)13.9%
ROE(5y)13.08%
ROIC(3y)6.04%
ROIC(5y)5.55%
1.3 Margins
With a Profit Margin value of 6.25%, A2A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A2A's Profit Margin has improved in the last couple of years.
A2A's Operating Margin of 9.70% is in line compared to the rest of the industry. A2A outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of A2A has grown nicely.
A2A's Gross Margin of 26.45% is on the low side compared to the rest of the industry. A2A is outperformed by 64.29% of its industry peers.
In the last couple of years the Gross Margin of A2A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 6.25% | ||
| GM | 26.45% |
OM growth 3Y21.47%
OM growth 5Y1.75%
PM growth 3Y15.48%
PM growth 5Y4.82%
GM growth 3Y10%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
A2A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for A2A remains at a similar level compared to 1 year ago.
A2A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for A2A is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that A2A is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.96, A2A belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
A2A has a Debt/Equity ratio of 0.97. This is a neutral value indicating A2A is somewhat dependend on debt financing.
The Debt to Equity ratio of A2A (0.97) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC2.35
WACC5.05%
2.3 Liquidity
A Current Ratio of 0.92 indicates that A2A may have some problems paying its short term obligations.
A2A has a Current ratio (0.92) which is in line with its industry peers.
A2A has a Quick Ratio of 0.92. This is a bad value and indicates that A2A is not financially healthy enough and could expect problems in meeting its short term obligations.
A2A's Quick ratio of 0.88 is in line compared to the rest of the industry. A2A outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
A2A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.37%.
The Earnings Per Share has been growing by 17.19% on average over the past years. This is quite good.
A2A shows a small growth in Revenue. In the last year, the Revenue has grown by 7.19%.
Measured over the past years, A2A shows a quite strong growth in Revenue. The Revenue has been growing by 11.91% on average per year.
EPS 1Y (TTM)-1.37%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-11.21%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%13.13%
3.2 Future
The Earnings Per Share is expected to decrease by -5.16% on average over the next years.
Based on estimates for the next years, A2A will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.
EPS Next Y-18.51%
EPS Next 2Y-9.99%
EPS Next 3Y-5.2%
EPS Next 5Y-5.16%
Revenue Next Year-8.25%
Revenue Next 2Y-4.66%
Revenue Next 3Y-3%
Revenue Next 5Y2.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.58, the valuation of A2A can be described as very cheap.
100.00% of the companies in the same industry are more expensive than A2A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.06. A2A is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.03, the valuation of A2A can be described as correct.
Based on the Price/Forward Earnings ratio, A2A is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. A2A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.63 |
4.3 Compensation for Growth
The decent profitability rating of A2A may justify a higher PE ratio.
A2A's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-9.99%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 3.67%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.67, A2A pays less dividend than the industry average, which is at 4.86. 85.71% of the companies listed in the same industry pay a better dividend than A2A!
A2A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-9.99%
EPS Next 3Y-5.2%
BIT:A2A (11/10/2025, 5:35:15 PM)
2.696
+0.03 (+1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.45B
Revenue(TTM)20.63B
Net Income(TTM)1.29B
Analysts80
Price Target2.6 (-3.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.71%
PT rev (3m)2.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 12.03 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 5.87 | ||
| P/B | 1.52 | ||
| P/tB | 7.25 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)0.41
EY15.21%
EPS(NY)0.22
Fwd EY8.31%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.46
OCFY17.04%
SpS6.59
BVpS1.77
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.38
Graham Number4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 23.23% | ||
| ROCE | 15.74% | ||
| ROIC | 11.89% | ||
| ROICexc | 13.88% | ||
| ROICexgc | 23.26% | ||
| OM | 9.7% | ||
| PM (TTM) | 6.25% | ||
| GM | 26.45% | ||
| FCFM | N/A |
ROA(3y)3.24%
ROA(5y)3.1%
ROE(3y)13.9%
ROE(5y)13.08%
ROIC(3y)6.04%
ROIC(5y)5.55%
ROICexc(3y)7.01%
ROICexc(5y)6.36%
ROICexgc(3y)10.91%
ROICexgc(5y)9.82%
ROCE(3y)8%
ROCE(5y)7.35%
ROICexgc growth 3Y13.49%
ROICexgc growth 5Y5.1%
ROICexc growth 3Y13.39%
ROICexc growth 5Y3.77%
OM growth 3Y21.47%
OM growth 5Y1.75%
PM growth 3Y15.48%
PM growth 5Y4.82%
GM growth 3Y10%
GM growth 5Y-0.89%
F-Score4
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 180.02% | ||
| Cap/Sales | 7.95% | ||
| Interest Coverage | 13.35 | ||
| Cash Conversion | 49.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.96 |
F-Score4
WACC5.05%
ROIC/WACC2.35
Cap/Depr(3y)171.37%
Cap/Depr(5y)161.67%
Cap/Sales(3y)8.81%
Cap/Sales(5y)9.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.37%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-11.21%
EPS Next Y-18.51%
EPS Next 2Y-9.99%
EPS Next 3Y-5.2%
EPS Next 5Y-5.16%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%13.13%
Revenue Next Year-8.25%
Revenue Next 2Y-4.66%
Revenue Next 3Y-3%
Revenue Next 5Y2.46%
EBIT growth 1Y-1.72%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year67.92%
EBIT Next 3Y21.06%
EBIT Next 5Y12.74%
FCF growth 1Y-204.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.71%
OCF growth 3Y0.12%
OCF growth 5Y10.23%
A2A SPA / A2A.MI FAQ
What is the fundamental rating for A2A stock?
ChartMill assigns a fundamental rating of 5 / 10 to A2A.MI.
Can you provide the valuation status for A2A SPA?
ChartMill assigns a valuation rating of 6 / 10 to A2A SPA (A2A.MI). This can be considered as Fairly Valued.
What is the profitability of A2A stock?
A2A SPA (A2A.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of A2A SPA (A2A.MI) stock?
The Price/Earnings (PE) ratio for A2A SPA (A2A.MI) is 6.58 and the Price/Book (PB) ratio is 1.52.
How sustainable is the dividend of A2A SPA (A2A.MI) stock?
The dividend rating of A2A SPA (A2A.MI) is 3 / 10 and the dividend payout ratio is 0%.