A2A SPA (A2A.MI) Stock Fundamental Analysis
BIT:A2A - Euronext Milan - IT0001233417 - Common Stock - Currency: EUR
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. While A2A belongs to the best of the industry regarding profitability, 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
A2A had positive earnings in the past year.
A2A had a positive operating cash flow in the past year.
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
The Return On Assets of A2A (6.95%) is better than 100.00% of its industry peers.
The Return On Equity of A2A (25.38%) is better than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 11.52%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for A2A is in line with the industry average of 6.66%.
The last Return On Invested Capital (11.52%) for A2A is above the 3 year average (6.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 25.38% | ||
| ROIC | 11.52% |
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 7.17%, A2A is doing good in 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 (10.87%) which is in line with its industry peers.
In the last couple of years the Operating Margin of A2A has grown nicely.
With a Gross Margin value of 28.42%, A2A is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
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 | 10.87% | ||
| PM (TTM) | 7.17% | ||
| GM | 28.42% |
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.
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.
A2A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that A2A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of A2A (1.92) is better than 92.31% of its industry peers.
A2A has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
A2A's Debt to Equity ratio of 1.16 is amongst the best of the industry. A2A outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC2.34
WACC4.93%
2.3 Liquidity
A2A has a Current Ratio of 1.12. This is a normal value and indicates that A2A is financially healthy and should not expect problems in meeting its short term obligations.
A2A has a better Current ratio (1.12) than 84.62% of its industry peers.
A Quick Ratio of 1.07 indicates that A2A should not have too much problems paying its short term obligations.
A2A has a Quick ratio of 1.07. This is amongst the best in the industry. A2A outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
A2A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.43%, 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.
Looking at the last year, A2A shows a very negative growth in Revenue. The Revenue has decreased by -15.60% in the last 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)42.43%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-1.56%
Revenue 1Y (TTM)-15.6%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%-0.04%
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
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 5.13, the valuation of A2A can be described as very cheap.
Based on the Price/Earnings ratio, A2A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
A2A is valuated cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.17, the valuation of A2A can be described as reasonable.
Based on the Price/Forward Earnings ratio, A2A is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, A2A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.26 |
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 -7.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 4.47%, which is a nice return.
Compared to an average industry Dividend Yield of 5.32, A2A has a dividend in line with its industry peers.
A2A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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 (5/7/2025, 7:00:00 PM)
2.257
+0.01 (+0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.07B
Analysts80
Price Target2.54 (12.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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)0.34%
PT rev (3m)0.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.79%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.66%
Revenue NY rev (3m)-4.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 10.17 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 6.21 | ||
| P/B | 1.3 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)0.44
EY19.49%
EPS(NY)0.22
Fwd EY9.84%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.36
OCFY16.11%
SpS6.16
BVpS1.74
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 25.38% | ||
| ROCE | 15.26% | ||
| ROIC | 11.52% | ||
| ROICexc | 13.02% | ||
| ROICexgc | 20.13% | ||
| OM | 10.87% | ||
| PM (TTM) | 7.17% | ||
| GM | 28.42% | ||
| 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-Score5
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 171.04% | ||
| Cap/Sales | 7.84% | ||
| Interest Coverage | 19.42 | ||
| Cash Conversion | 38.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.92 |
F-Score5
WACC4.93%
ROIC/WACC2.34
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)42.43%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%-1.56%
EPS Next Y-19.73%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
EPS Next 5Y-7.23%
Revenue 1Y (TTM)-15.6%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%-0.04%
Revenue Next Year-11.3%
Revenue Next 2Y-6.08%
Revenue Next 3Y-4.22%
Revenue Next 5Y-4.53%
EBIT growth 1Y35.82%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year67.17%
EBIT Next 3Y20.93%
EBIT Next 5Y11.69%
FCF growth 1Y-11.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.52%
OCF growth 3Y0.12%
OCF growth 5Y10.23%