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A2A SPA (A2A.MI) Stock Fundamental Analysis

BIT:A2A - Euronext Milan - IT0001233417 - Common Stock - Currency: EUR

2.309  +0 (+0.09%)

Fundamental Rating

6

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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year A2A was profitable.
A2A had a positive operating cash flow in the past year.
Each year in the past 5 years A2A has been profitable.
Each year in the past 5 years A2A had a positive operating cash flow.
A2A.MI Yearly Net Income VS EBIT VS OCF VS FCFA2A.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

A2A has a better Return On Assets (6.61%) than 100.00% of its industry peers.
A2A has a Return On Equity of 23.60%. This is amongst the best in the industry. A2A outperforms 92.31% of its industry peers.
A2A's Return On Invested Capital of 10.68% is amongst the best of the industry. A2A outperforms 100.00% of its industry peers.
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 6.45%.
The last Return On Invested Capital (10.68%) for A2A is above the 3 year average (6.04%), which is a sign of increasing profitability.
Industry RankSector 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%
A2A.MI Yearly ROA, ROE, ROICA2A.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 6.78%, A2A is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A2A's Profit Margin has improved in the last couple of years.
A2A has a Operating Margin (10.32%) which is comparable to the rest of the industry.
A2A's Operating Margin has improved in the last couple of years.
A2A has a Gross Margin (27.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of A2A has remained more or less at the same level.
Industry RankSector 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%
A2A.MI Yearly Profit, Operating, Gross MarginsA2A.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), A2A 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.
A2A.MI Yearly Shares OutstandingA2A.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
A2A.MI Yearly Total Debt VS Total AssetsA2A.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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.
A2A has a better Altman-Z score (1.96) than 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.
With a decent Debt to Equity ratio value of 1.20, A2A is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF N/A
Altman-Z 1.96
ROIC/WACC2.15
WACC4.97%
A2A.MI Yearly LT Debt VS Equity VS FCFA2A.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.23 indicates that A2A should not have too much problems paying its short term obligations.
A2A has a Current ratio of 1.23. This is amongst the best in the industry. A2A outperforms 84.62% of its industry peers.
A Quick Ratio of 1.20 indicates that A2A should not have too much problems paying its short term obligations.
A2A has a better Quick ratio (1.20) than 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.2
A2A.MI Yearly Current Assets VS Current LiabilitesA2A.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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3

3. Growth

3.1 Past

A2A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.94%, which is quite impressive.
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.
The Revenue has decreased by -6.22% in the past year.
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)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

A2A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.23% yearly.
A2A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.53% yearly.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
A2A.MI Yearly Revenue VS EstimatesA2A.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
A2A.MI Yearly EPS VS EstimatesA2A.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.05 0.1 0.15 0.2 0.25

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6

4. Valuation

4.1 Price/Earnings Ratio

A2A is valuated cheaply with a Price/Earnings ratio of 5.37.
Compared to the rest of the industry, the Price/Earnings ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 100.00% of the companies listed in the same industry.
A2A is valuated cheaply when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.44 indicates a reasonable 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.
When comparing the Price/Forward Earnings ratio of A2A to the average of the S&P500 Index (22.27), we can say A2A is valued rather cheaply.
Industry RankSector Rank
PE 5.37
Fwd PE 10.44
A2A.MI Price Earnings VS Forward Price EarningsA2A.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

A2A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. A2A is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.3
A2A.MI Per share dataA2A.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

The excellent profitability rating of A2A 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%

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4

5. Dividend

5.1 Amount

A2A has a Yearly Dividend Yield of 4.34%, which is a nice return.
A2A's Dividend Yield is slightly below the industry average, which is at 5.13.
A2A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
Industry RankSector 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%
A2A.MI Yearly Income VS Free CF VS DividendA2A.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

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A2A SPA

BIT:A2A (6/10/2025, 3:20:01 PM)

2.309

+0 (+0.09%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)05-13 2025-05-13
Earnings (Next)07-31 2025-07-31
Inst Owners15.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.23B
Analysts80
Price Target2.55 (10.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 5.37
Fwd PE 10.44
P/S 0.36
P/FCF N/A
P/OCF 4.72
P/B 1.27
P/tB 5.37
EV/EBITDA 4.3
EPS(TTM)0.43
EY18.62%
EPS(NY)0.22
Fwd EY9.58%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.49
OCFY21.18%
SpS6.33
BVpS1.82
TBVpS0.43
PEG (NY)N/A
PEG (5Y)0.31
Profitability
Industry RankSector 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 RankSector 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 1.96
F-Score6
WACC4.97%
ROIC/WACC2.15
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%