ACEA SPA (ACE.MI) Stock Fundamental Analysis
BIT:ACE - Euronext Milan - IT0001207098 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ACE. ACE was compared to 13 industry peers in the Multi-Utilities industry. ACE has an excellent profitability rating, but there are concerns on its financial health. ACE has a decent growth rate and is not valued too expensively. ACE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACE was profitable.
ACE had a positive operating cash flow in the past year.
ACE had positive earnings in each of the past 5 years.
In the past 5 years ACE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.89%, ACE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Return On Equity of ACE (23.86%) is better than 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.86%, ACE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ACE had an Average Return On Invested Capital over the past 3 years of 4.42%. This is below the industry average of 6.47%.
The last Return On Invested Capital (7.86%) for ACE is above the 3 year average (4.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 23.86% | ||
| ROIC | 7.86% |
ROA(3y)2.56%
ROA(5y)2.71%
ROE(3y)12.6%
ROE(5y)13.41%
ROIC(3y)4.42%
ROIC(5y)4.33%
1.3 Margins
ACE has a better Profit Margin (10.19%) than 84.62% of its industry peers.
In the last couple of years the Profit Margin of ACE has declined.
ACE has a Operating Margin of 17.68%. This is amongst the best in the industry. ACE outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of ACE has grown nicely.
ACE has a Gross Margin of 53.29%. This is in the better half of the industry: ACE outperforms 76.92% of its industry peers.
ACE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.68% | ||
| PM (TTM) | 10.19% | ||
| GM | 53.29% |
OM growth 3Y4.06%
OM growth 5Y2.45%
PM growth 3Y-0.18%
PM growth 5Y-2.75%
GM growth 3Y4.23%
GM growth 5Y2.24%
2. Health
2.1 Basic Checks
ACE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ACE remains at a similar level compared to 1 year ago.
ACE has about the same amout of shares outstanding than it did 5 years ago.
ACE has a better debt/assets ratio than last year.
2.2 Solvency
ACE has an Altman-Z score of 1.08. This is a bad value and indicates that ACE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.08, ACE is doing good in the industry, outperforming 61.54% of the companies in the same industry.
ACE has a debt to FCF ratio of 24.86. This is a negative value and a sign of low solvency as ACE would need 24.86 years to pay back of all of its debts.
The Debt to FCF ratio of ACE (24.86) is worse than 61.54% of its industry peers.
ACE has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.00, ACE is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 24.86 | ||
| Altman-Z | 1.08 |
ROIC/WACC1.67
WACC4.72%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ACE may have some problems paying its short term obligations.
ACE has a worse Current ratio (0.69) than 84.62% of its industry peers.
A Quick Ratio of 0.65 indicates that ACE may have some problems paying its short term obligations.
ACE's Quick ratio of 0.65 is on the low side compared to the rest of the industry. ACE is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.19% over the past year.
Measured over the past 5 years, ACE shows a small growth in Earnings Per Share. The EPS has been growing by 3.17% on average per year.
Looking at the last year, ACE shows a decrease in Revenue. The Revenue has decreased by -8.49% in the last year.
Measured over the past years, ACE shows a small growth in Revenue. The Revenue has been growing by 6.09% on average per year.
EPS 1Y (TTM)26.19%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%31.22%
Revenue 1Y (TTM)-8.49%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-26.27%
3.2 Future
The Earnings Per Share is expected to grow by 4.22% on average over the next years.
ACE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y4.22%
Revenue Next Year-16.3%
Revenue Next 2Y-7.57%
Revenue Next 3Y-4.05%
Revenue Next 5Y0.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 7.10, the valuation of ACE can be described as very cheap.
ACE's Price/Earnings ratio is rather cheap when compared to the industry. ACE is cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACE to the average of the S&P500 Index (26.99), we can say ACE is valued rather cheaply.
ACE is valuated correctly with a Price/Forward Earnings ratio of 12.43.
The rest of the industry has a similar Price/Forward Earnings ratio as ACE.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, ACE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACE.
ACE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
ACE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ACE may justify a higher PE ratio.
PEG (NY)0.42
PEG (5Y)2.24
EPS Next 2Y1.93%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
ACE has a Yearly Dividend Yield of 4.89%, which is a nice return.
ACE's Dividend Yield is a higher than the industry average which is at 5.24.
Compared to an average S&P500 Dividend Yield of 2.40, ACE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
On average, the dividend of ACE grows each year by 15.14%, which is quite nice.
Dividend Growth(5Y)15.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.70% of the earnings are spent on dividend by ACE. This is a low number and sustainable payout ratio.
ACE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.7%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
BIT:ACE (8/6/2025, 5:35:15 PM)
19.95
+0.03 (+0.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners7%
Inst Owner ChangeN/A
Ins Owners5.45%
Ins Owner ChangeN/A
Market Cap4.25B
Analysts82.22
Price Target22.54 (12.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend0.7
Dividend Growth(5Y)15.14%
DP26.7%
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)2.31%
PT rev (3m)8.87%
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)-12.16%
Revenue NY rev (3m)-14.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 12.43 | ||
| P/S | 0.72 | ||
| P/FCF | 18.68 | ||
| P/OCF | 2.5 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)2.81
EY14.09%
EPS(NY)1.6
Fwd EY8.04%
FCF(TTM)1.07
FCFY5.35%
OCF(TTM)7.98
OCFY40%
SpS27.56
BVpS11.76
TBVpS-10.11
PEG (NY)0.42
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 23.86% | ||
| ROCE | 11.7% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.04% | ||
| ROICexgc | 17.07% | ||
| OM | 17.68% | ||
| PM (TTM) | 10.19% | ||
| GM | 53.29% | ||
| FCFM | 3.88% |
ROA(3y)2.56%
ROA(5y)2.71%
ROE(3y)12.6%
ROE(5y)13.41%
ROIC(3y)4.42%
ROIC(5y)4.33%
ROICexc(3y)4.88%
ROICexc(5y)4.87%
ROICexgc(3y)11.23%
ROICexgc(5y)10.84%
ROCE(3y)6.58%
ROCE(5y)6.46%
ROICexcg growth 3Y3.65%
ROICexcg growth 5Y-0.24%
ROICexc growth 3Y0.82%
ROICexc growth 5Y-0.78%
OM growth 3Y4.06%
OM growth 5Y2.45%
PM growth 3Y-0.18%
PM growth 5Y-2.75%
GM growth 3Y4.23%
GM growth 5Y2.24%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 24.86 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 215.48% | ||
| Cap/Sales | 25.08% | ||
| Interest Coverage | 6.15 | ||
| Cash Conversion | 98.75% | ||
| Profit Quality | 38.05% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.08 |
F-Score6
WACC4.72%
ROIC/WACC1.67
Cap/Depr(3y)184.97%
Cap/Depr(5y)156.88%
Cap/Sales(3y)26.71%
Cap/Sales(5y)22.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.19%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%31.22%
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y4.22%
Revenue 1Y (TTM)-8.49%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-26.27%
Revenue Next Year-16.3%
Revenue Next 2Y-7.57%
Revenue Next 3Y-4.05%
Revenue Next 5Y0.47%
EBIT growth 1Y14.98%
EBIT growth 3Y6.24%
EBIT growth 5Y8.69%
EBIT Next Year116.35%
EBIT Next 3Y33.18%
EBIT Next 5Y26.22%
FCF growth 1Y-56.11%
FCF growth 3Y29.26%
FCF growth 5Y-3.89%
OCF growth 1Y95.28%
OCF growth 3Y31.42%
OCF growth 5Y16.3%