A2A SPA (A2A.MI) Stock Fundamental Analysis
Europe - BIT:A2A - IT0001233417 - Common Stock
2.33 EUR
+0.01 (+0.39%)
A2A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 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.
In the past year A2A had a positive cash flow from operations.
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
A2A has a better Return On Assets (6.48%) than 100.00% of its industry peers.
A2A's Return On Equity of 23.23% is amongst the best of the industry. A2A outperforms 92.86% of its industry peers.
The Return On Invested Capital of A2A (11.89%) is better than 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 6.45%.
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 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of A2A has grown nicely.
With a Operating Margin value of 9.70%, A2A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of A2A has grown nicely.
The Gross Margin of A2A (26.45%) is worse than 64.29% of its industry peers.
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.
Compared to 1 year ago, A2A has about the same amount of shares outstanding.
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 1.91. 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 Altman-Z score of 1.91. This is amongst the best in the industry. A2A outperforms 92.86% of its industry peers.
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 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC2.47
WACC4.81%
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 has a Current ratio (0.92) which is in line with 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.
With a Quick ratio value of 0.88, A2A perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| 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.
A2A shows a small growth in Revenue. In the last year, the Revenue has grown by 7.19%.
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 -5.11% on average over the next years.
Based on estimates for the next years, A2A will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-18.09%
EPS Next 2Y-9.12%
EPS Next 3Y-5.2%
EPS Next 5Y-5.11%
Revenue Next Year-8.42%
Revenue Next 2Y-4.52%
Revenue Next 3Y-3.29%
Revenue Next 5Y2.29%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.68, 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
A Price/Forward Earnings ratio of 10.20 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 92.86% of the companies listed in the same industry.
A2A is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 10.2 |
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 | 4.26 |
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 -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-9.12%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
A2A has a Yearly Dividend Yield of 4.28%, which is a nice return.
Compared to an average industry Dividend Yield of 5.06, A2A is paying slightly less dividend.
A2A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-9.12%
EPS Next 3Y-5.2%
BIT:A2A (10/20/2025, 5:35:30 PM)
2.33
+0.01 (+0.39%)
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 Cap7.30B
Analysts78.18
Price Target2.56 (9.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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%
PT rev (3m)0.86%
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%
Revenue NY rev (3m)3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 5.07 | ||
| P/B | 1.31 | ||
| P/tB | 6.27 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)0.41
EY17.6%
EPS(NY)0.23
Fwd EY9.8%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.46
OCFY19.71%
SpS6.59
BVpS1.77
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.33
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 | 1.91 |
F-Score4
WACC4.81%
ROIC/WACC2.47
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-9.12%
EPS Next 3Y-5.2%
EPS Next 5Y-5.11%
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 5Y2.29%
EBIT growth 1Y-1.72%
EBIT growth 3Y25.9%
EBIT growth 5Y13.87%
EBIT Next Year67.92%
EBIT Next 3Y21.06%
EBIT Next 5Y12.62%
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%