A2A SPA (A2A.MI) Stock Fundamental Analysis
BIT:A2A - Euronext Milan - IT0001233417 - Common Stock - Currency: EUR
A2A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Multi-Utilities industry. While A2A has a great profitability rating, there are some minor concerns on its financial health. A2A is valued correctly, but it does not seem to be growing.
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.
A2A had positive earnings in each of the past 5 years.
A2A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.61%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
With an excellent Return On Invested Capital value of 10.68%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 6.44%.
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 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.
In the last couple of years the Profit Margin of A2A has grown nicely.
The Operating Margin of A2A (10.32%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of A2A has grown nicely.
Looking at the Gross Margin, with a value of 27.63%, A2A is doing worse than 61.54% of the companies in the same industry.
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.
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.
The debt/assets ratio for A2A is higher compared to a year ago.
2.2 Solvency
A2A has an Altman-Z score of 1.96. 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 better Altman-Z score (1.96) than 92.31% of its industry peers.
A2A has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
A2A has a better Debt to Equity ratio (1.20) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC2.22
WACC4.82%
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.
Looking at the Current ratio, with a value of 1.23, A2A belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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.
With an excellent Quick ratio value of 1.20, A2A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.2 |
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.
The Earnings Per Share has been growing by 17.19% on average over the past years. This is quite good.
A2A shows a decrease in Revenue. In the last year, the revenue decreased by -6.22%.
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
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.
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
The Price/Earnings ratio is 5.27, which 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 27.28, A2A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.24, the valuation of A2A can be described as reasonable.
Based on the Price/Forward Earnings ratio, A2A is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. A2A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 10.24 |
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 | 4.28 |
4.3 Compensation for Growth
The decent 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%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.12, A2A is paying slightly less dividend.
A2A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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 (7/3/2025, 5:35:30 PM)
2.265
-0.02 (-1.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.99%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.10B
Analysts80
Price Target2.55 (12.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)-1.79%
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 | 5.27 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 4.63 | ||
| P/B | 1.25 | ||
| P/tB | 5.27 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)0.43
EY18.98%
EPS(NY)0.22
Fwd EY9.77%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.49
OCFY21.59%
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 | 1.96 |
F-Score6
WACC4.82%
ROIC/WACC2.22
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 5Y12.33%
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%