A2A SPA (A2A.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:A2A - IT0001233417 - Common Stock
2.282 EUR
+0 (+0.09%)
Overall A2A gets a fundamental rating of 5 out of 10. We evaluated A2A against 17 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
A2A had positive earnings in the past year.
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 better Return On Equity (23.23%) than 94.12% of its industry peers.
A2A's Return On Invested Capital of 11.89% is amongst the best of the industry. A2A outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for A2A is in line with the industry average of 6.00%.
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
Looking at the Profit Margin, with a value of 6.25%, A2A is in line with its industry, outperforming 47.06% 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 47.06% of its industry peers.
A2A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.45%, A2A is in line with its industry, outperforming 41.18% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so A2A is creating value.
A2A has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for A2A has been increased compared to 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 Altman-Z score of 1.91. This is amongst the best in the industry. A2A outperforms 94.12% 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.
With an excellent Debt to Equity ratio value of 0.97, A2A belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC2.52
WACC4.72%
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.
A2A's Current ratio of 0.92 is in line compared to the rest of the industry. A2A outperforms 58.82% of 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 58.82% 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%.
A2A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.19% yearly.
The Revenue has been growing slightly by 7.19% in the past year.
The Revenue has been growing by 11.91% on average over the past years. This is quite good.
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.
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-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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 5.57, the valuation of A2A can be described as very cheap.
Based on the Price/Earnings ratio, A2A is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, A2A is valued rather cheaply.
A2A is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 94.12% of the companies listed in the same industry.
A2A is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 10.18 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.22 |
4.3 Compensation for Growth
A2A has a very decent profitability rating, which 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)0.32
EPS Next 2Y-9.99%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, A2A is a good candidate for dividend investing.
A2A's Dividend Yield is comparable with the industry average which is at 4.53.
Compared to an average S&P500 Dividend Yield of 2.32, A2A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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 (12/5/2025, 7:00:00 PM)
2.282
+0 (+0.09%)
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 Cap7.15B
Revenue(TTM)20.63B
Net Income(TTM)1.29B
Analysts80
Price Target2.76 (20.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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)7.98%
PT rev (3m)7.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 4.97 | ||
| P/B | 1.29 | ||
| P/tB | 6.14 | ||
| EV/EBITDA | 4.22 |
EPS(TTM)0.41
EY17.97%
EPS(NY)0.22
Fwd EY9.82%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.46
OCFY20.13%
SpS6.59
BVpS1.77
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.32
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
WACC4.72%
ROIC/WACC2.52
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 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.
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 5.57 and the Price/Book (PB) ratio is 1.29.
How sustainable is the dividend of A2A SPA (A2A.MI) stock?
The dividend rating of A2A SPA (A2A.MI) is 4 / 10 and the dividend payout ratio is 0%.