A2A SPA (A2A.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:A2A - IT0001233417 - Common Stock
2.314 EUR
+0 (+0.17%)
Taking everything into account, A2A scores 5 out of 10 in our fundamental rating. A2A was compared to 18 industry peers in the Multi-Utilities industry. A2A scores excellent on profitability, but there are 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.
A2A had a positive operating cash flow in the past year.
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
The Return On Assets of A2A (6.48%) is better than 100.00% of its industry peers.
A2A has a Return On Equity of 23.23%. This is amongst the best in the industry. A2A outperforms 94.44% of its industry peers.
A2A has a Return On Invested Capital of 11.89%. This is amongst the best in the industry. A2A outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for A2A is in line with the industry average of 5.73%.
The 3 year average ROIC (6.04%) for A2A is below the current ROIC(11.89%), indicating increased profibility in the last year.
| 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 44.44% of the companies in the same industry.
In the last couple of years the Profit Margin of A2A has grown nicely.
A2A has a Operating Margin (9.70%) which is in line with its industry peers.
In the last couple of years the Operating Margin of A2A has grown nicely.
Looking at the Gross Margin, with a value of 26.45%, A2A is in line with its industry, outperforming 44.44% of the companies in the same industry.
A2A's Gross Margin has been stable in the last couple of years.
| 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.
A2A has about the same amout of shares outstanding than it did 1 year ago.
A2A has more shares outstanding than it did 5 years ago.
A2A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 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 (1.91) than 94.44% of its industry peers.
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 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC2.5
WACC4.76%
2.3 Liquidity
A2A has a Current 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.
The Current ratio of A2A (0.92) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that A2A may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, A2A is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for A2A have decreased by -1.37% in the last year.
A2A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.19% yearly.
Looking at the last year, A2A shows a small growth in Revenue. The Revenue has grown by 7.19% in the last year.
A2A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.91% yearly.
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
A2A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.16% yearly.
A2A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y-19.45%
EPS Next 2Y-12.13%
EPS Next 3Y-7.24%
EPS Next 5Y-5.16%
Revenue Next Year-8.75%
Revenue Next 2Y-4.78%
Revenue Next 3Y-3.34%
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 5.64, the valuation of A2A can be described as very cheap.
A2A's Price/Earnings ratio is rather cheap when compared to the industry. A2A is cheaper than 100.00% of the companies in the same industry.
A2A is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.84 indicates a reasonable valuation of A2A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 94.44% of the companies listed in the same industry.
A2A is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 10.84 |
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 | 4.25 |
4.3 Compensation for Growth
A2A has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as A2A's earnings are expected to decrease with -7.24% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-12.13%
EPS Next 3Y-7.24%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 4.37%, which is a nice return.
Compared to an average industry Dividend Yield of 4.49, A2A has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, A2A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-12.13%
EPS Next 3Y-7.24%
BIT:A2A (1/2/2026, 7:00:00 PM)
2.314
+0 (+0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.25B
Revenue(TTM)20.63B
Net Income(TTM)1.29B
Analysts74.55
Price Target2.74 (18.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)-0.79%
PT rev (3m)7.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.15%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 10.84 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 5.04 | ||
| P/B | 1.31 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)0.41
EY17.72%
EPS(NY)0.21
Fwd EY9.23%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.46
OCFY19.85%
SpS6.59
BVpS1.77
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.33
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 | 1.91 |
F-Score4
WACC4.76%
ROIC/WACC2.5
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-19.45%
EPS Next 2Y-12.13%
EPS Next 3Y-7.24%
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-8.75%
Revenue Next 2Y-4.78%
Revenue Next 3Y-3.34%
Revenue Next 5Y2.46%
EBIT growth 1Y-1.72%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year68.67%
EBIT Next 3Y20.81%
EBIT Next 5Y13.25%
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.
What is the valuation status of A2A SPA (A2A.MI) stock?
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.
Can you provide the expected EPS growth for A2A stock?
The Earnings per Share (EPS) of A2A SPA (A2A.MI) is expected to decline by -19.45% in the next year.
Can you provide the dividend sustainability for A2A stock?
The dividend rating of A2A SPA (A2A.MI) is 4 / 10 and the dividend payout ratio is 0%.