A2A SPA (A2A.MI) Stock Fundamental Analysis
Europe - BIT:A2A - IT0001233417 - Common Stock
2.178 EUR
+0.02 (+0.83%)
Taking everything into account, A2A scores 5 out of 10 in our fundamental rating. A2A was compared to 13 industry peers in the Multi-Utilities industry. A2A scores excellent on profitability, 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
A2A had positive earnings in the past year.
A2A had a positive operating cash flow in the past year.
Each year in the past 5 years A2A has been profitable.
A2A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
A2A has a Return On Assets of 6.48%. This is amongst the best in the industry. A2A outperforms 100.00% of its industry peers.
The Return On Equity of A2A (23.23%) is better than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 11.89%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for A2A is in line with the industry average of 6.46%.
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
A2A has a Profit Margin of 6.25%. This is comparable to the rest of the industry: A2A outperforms 53.85% of its industry peers.
A2A's Profit Margin has improved in the last couple of years.
A2A has a Operating Margin (9.70%) which is in line with 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 doing worse than 61.54% 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.
Compared to 5 years ago, A2A has more shares outstanding
The debt/assets ratio for A2A is higher compared to a year ago.
2.2 Solvency
A2A has an Altman-Z score of 1.89. 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.
With an excellent Altman-Z score value of 1.89, A2A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that 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 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC2.53
WACC4.69%
2.3 Liquidity
A Current Ratio of 0.92 indicates that A2A may have some problems paying its short term obligations.
With a decent Current ratio value of 0.92, A2A is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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.
The Quick ratio of A2A (0.88) is better than 61.54% of its industry peers.
| 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.
The Revenue has been growing slightly by 7.19% in the past 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
The Earnings Per Share is expected to decrease by -5.03% on average over the next years.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y-18.09%
EPS Next 2Y-9.33%
EPS Next 3Y-6.57%
EPS Next 5Y-5.03%
Revenue Next Year-8.42%
Revenue Next 2Y-4.52%
Revenue Next 3Y-3.29%
Revenue Next 5Y2.38%
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
Based on the Price/Earnings ratio of 5.31, 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 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.58, the valuation of A2A can be described as reasonable.
A2A's Price/Forward Earnings ratio is rather cheap when compared to the industry. A2A is cheaper than 92.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.89, A2A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.31 | ||
| Fwd PE | 9.58 |
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 | 4.09 |
4.3 Compensation for Growth
The decent profitability rating of A2A may justify a higher PE ratio.
A cheap valuation may be justified as A2A's earnings are expected to decrease with -6.57% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.33%
EPS Next 3Y-6.57%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 4.59%, which is a nice return.
A2A's Dividend Yield is comparable with the industry average which is at 5.12.
Compared to an average S&P500 Dividend Yield of 2.42, A2A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-9.33%
EPS Next 3Y-6.57%
BIT:A2A (9/26/2025, 7:00:00 PM)
2.178
+0.02 (+0.83%)
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 Cap6.82B
Analysts78.18
Price Target2.56 (17.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)0.57%
PT rev (3m)0.28%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.31 | ||
| Fwd PE | 9.58 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 4.74 | ||
| P/B | 1.23 | ||
| P/tB | 5.86 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)0.41
EY18.82%
EPS(NY)0.23
Fwd EY10.44%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.46
OCFY21.09%
SpS6.59
BVpS1.77
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.31
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%
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-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 | 1.89 |
F-Score4
WACC4.69%
ROIC/WACC2.53
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-18.09%
EPS Next 2Y-9.33%
EPS Next 3Y-6.57%
EPS Next 5Y-5.03%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%13.13%
Revenue Next Year-8.42%
Revenue Next 2Y-4.52%
Revenue Next 3Y-3.29%
Revenue Next 5Y2.38%
EBIT growth 1Y-1.72%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year67.92%
EBIT Next 3Y20.98%
EBIT Next 5Y12.72%
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%