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. A2A has an excellent profitability rating, but 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.
A2A had a positive operating cash flow in the past year.
Each year in the past 5 years A2A has been profitable.
Each year in the past 5 years A2A had a positive operating cash flow.
1.2 Ratios
A2A has a better Return On Assets (6.61%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 23.60%, A2A belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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 6.47%.
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
A2A has a Profit Margin of 6.78%. This is in the better half of the industry: A2A outperforms 76.92% of its industry peers.
A2A's Profit Margin has improved in the last couple of years.
A2A's Operating Margin of 10.32% is in line compared to the rest of the industry. A2A outperforms 53.85% of its industry peers.
In the last couple of years the Operating Margin of A2A has grown nicely.
A2A's Gross Margin of 27.63% is on the low side compared to the rest of the industry. A2A is outperformed by 61.54% of its industry peers.
A2A's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, A2A has about the same amount of shares outstanding.
Compared to 5 years ago, A2A has more shares outstanding
A2A has a worse debt/assets ratio than last year.
2.2 Solvency
A2A has an Altman-Z score of 1.94. 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.
Looking at the Altman-Z score, with a value of 1.94, A2A belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
A2A has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
A2A has a Debt to Equity ratio of 1.20. This is in the better half of the industry: A2A outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.94 |
ROIC/WACC2.29
WACC4.66%
2.3 Liquidity
A Current Ratio of 1.23 indicates that A2A should not have too much problems paying its short term obligations.
A2A's Current ratio of 1.23 is amongst the best of the industry. A2A outperforms 84.62% of its industry peers.
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.
A2A has a better Quick ratio (1.20) than 92.31% of its industry peers.
| 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.
Looking at the last year, A2A shows a decrease in Revenue. The Revenue has decreased by -6.22% in the last 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)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
A2A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.23% yearly.
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-8.33%
Revenue Next 2Y-4.63%
Revenue Next 3Y-3.33%
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
A2A is valuated cheaply with a Price/Earnings ratio of 5.01.
Based on the Price/Earnings ratio, A2A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. A2A is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.73, which indicates a very decent valuation of A2A.
Based on the Price/Forward Earnings ratio, A2A is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
A2A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 9.73 |
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 | 4.13 |
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)0.29
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, A2A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.24, A2A is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, A2A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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 (8/5/2025, 9:07:16 AM)
2.153
-0.01 (-0.37%)
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 Cap6.75B
Analysts80
Price Target2.54 (17.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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)-0.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.34%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.34 | ||
| P/FCF | N/A | ||
| P/OCF | 4.4 | ||
| P/B | 1.18 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 4.13 |
EPS(TTM)0.43
EY19.97%
EPS(NY)0.22
Fwd EY10.27%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.49
OCFY22.71%
SpS6.33
BVpS1.82
TBVpS0.43
PEG (NY)N/A
PEG (5Y)0.29
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 | 1.94 |
F-Score6
WACC4.66%
ROIC/WACC2.29
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-8.33%
Revenue Next 2Y-4.63%
Revenue Next 3Y-3.33%
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%