A2A SPA (A2A.MI) Stock Fundamental Analysis
BIT:A2A - Euronext Milan - IT0001233417 - Common Stock - Currency: EUR
Overall A2A gets a fundamental rating of 6 out of 10. We evaluated A2A against 13 industry peers in the Multi-Utilities industry. A2A has an excellent profitability rating, but there are some minor concerns on its financial health. A2A has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years A2A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.61%, A2A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 23.60%, A2A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.68%, A2A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for A2A is in line with the industry average of 6.45%.
The 3 year average ROIC (6.04%) for A2A is below the current ROIC(10.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 23.6% | ||
| ROIC | 10.68% |
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 decent Profit Margin value of 6.78%, A2A is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A2A's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.32%, A2A is in line with its industry, outperforming 53.85% of the companies in the same industry.
A2A's Operating Margin has improved in the last couple of years.
A2A's Gross Margin of 27.63% is in line compared to the rest of the industry. A2A outperforms 46.15% 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 | 10.32% | ||
| PM (TTM) | 6.78% | ||
| GM | 27.63% |
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.
The number of shares outstanding for A2A has been increased compared to 5 years ago.
Compared to 1 year ago, A2A has a worse debt to assets ratio.
2.2 Solvency
A2A has an Altman-Z score of 1.97. This is not the best score and indicates that A2A is in the grey zone with still only limited risk for bankruptcy at the moment.
A2A has a Altman-Z score of 1.97. This is amongst the best in the industry. A2A outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that A2A has dependencies on debt financing.
A2A has a Debt to Equity ratio of 1.20. This is in the better half of the industry: A2A outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC2.14
WACC4.99%
2.3 Liquidity
A2A has a Current Ratio of 1.23. This is a normal value and indicates that A2A is financially healthy and should not expect problems in meeting its short term obligations.
A2A has a better Current ratio (1.23) than 84.62% of its industry peers.
A2A has a Quick Ratio of 1.20. This is a normal value and indicates that A2A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of A2A (1.20) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.94% over the past year.
Measured over the past years, A2A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.19% on average per year.
Looking at the last year, A2A shows a decrease in Revenue. The Revenue has decreased by -6.22% in the last year.
The Revenue has been growing by 11.91% on average over the past years. This is quite good.
EPS 1Y (TTM)22.94%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-12.58%
Revenue 1Y (TTM)-6.22%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%15.85%
3.2 Future
Based on estimates for the next years, A2A will show a decrease in Earnings Per Share. The EPS will decrease by -7.23% on average per year.
Based on estimates for the next years, A2A will show a decrease in Revenue. The Revenue will decrease by -4.53% on average per year.
EPS Next Y-19.73%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
EPS Next 5Y-7.23%
Revenue Next Year-11.3%
Revenue Next 2Y-6.08%
Revenue Next 3Y-4.22%
Revenue Next 5Y-4.53%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.39 indicates a rather cheap valuation of A2A.
100.00% of the companies in the same industry are more expensive than A2A, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, A2A is valued rather cheaply.
The Price/Forward Earnings ratio is 10.48, which indicates a very decent valuation of A2A.
Based on the Price/Forward Earnings ratio, A2A is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, A2A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.39 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than A2A, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
A2A has an outstanding profitability rating, which may justify a higher PE ratio.
A2A's earnings are expected to decrease with -7.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, A2A is a good candidate for dividend investing.
A2A's Dividend Yield is slightly below the industry average, which is at 5.13.
Compared to an average S&P500 Dividend Yield of 2.39, A2A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
BIT:A2A (6/9/2025, 2:48:01 PM)
2.317
-0.01 (-0.52%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.26B
Analysts80
Price Target2.55 (10.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)0.33%
PT rev (3m)0.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.39 | ||
| Fwd PE | 10.48 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 4.74 | ||
| P/B | 1.27 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)0.43
EY18.56%
EPS(NY)0.22
Fwd EY9.55%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.49
OCFY21.1%
SpS6.33
BVpS1.82
TBVpS0.43
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 23.6% | ||
| ROCE | 14.14% | ||
| ROIC | 10.68% | ||
| ROICexc | 11.99% | ||
| ROICexgc | 18.11% | ||
| OM | 10.32% | ||
| PM (TTM) | 6.78% | ||
| GM | 27.63% | ||
| 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%
ROICexcg growth 3Y13.49%
ROICexcg 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-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 176.72% | ||
| Cap/Sales | 8.04% | ||
| Interest Coverage | 20.07 | ||
| Cash Conversion | 51.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.97 |
F-Score6
WACC4.99%
ROIC/WACC2.14
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)22.94%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-12.58%
EPS Next Y-19.73%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
EPS Next 5Y-7.23%
Revenue 1Y (TTM)-6.22%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%15.85%
Revenue Next Year-11.3%
Revenue Next 2Y-6.08%
Revenue Next 3Y-4.22%
Revenue Next 5Y-4.53%
EBIT growth 1Y18.94%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year67.92%
EBIT Next 3Y20.98%
EBIT Next 5Y12.73%
FCF growth 1Y-120%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.22%
OCF growth 3Y0.12%
OCF growth 5Y10.23%