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 scores excellent on profitability, but there are concerns on its financial health. ACE has a valuation in line with the averages, but on the other hand it scores bad on growth. ACE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACE had positive earnings in the past year.
In the past year ACE had a positive cash flow from operations.
In the past 5 years ACE has always been profitable.
In the past 5 years ACE always reported a positive cash flow from operatings.
1.2 Ratios
ACE has a better Return On Assets (4.31%) than 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 21.06%, ACE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
ACE has a better Return On Invested Capital (7.57%) than 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACE is below the industry average of 6.66%.
The 3 year average ROIC (4.42%) for ACE is below the current ROIC(7.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 21.06% | ||
| ROIC | 7.57% |
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's Profit Margin of 8.35% is amongst the best of the industry. ACE outperforms 84.62% of its industry peers.
ACE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.83%, ACE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ACE has grown nicely.
Looking at the Gross Margin, with a value of 54.96%, ACE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ACE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.83% | ||
| PM (TTM) | 8.35% | ||
| GM | 54.96% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACE is creating some value.
Compared to 1 year ago, ACE has about the same amount of shares outstanding.
ACE has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for ACE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that ACE is in the distress zone and has some risk of bankruptcy.
ACE has a Altman-Z score of 1.12. This is in the better half of the industry: ACE outperforms 61.54% of its industry peers.
The Debt to FCF ratio of ACE is 17.26, which is on the high side as it means it would take ACE, 17.26 years of fcf income to pay off all of its debts.
ACE has a Debt to FCF ratio (17.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.00 is on the high side and indicates that ACE has dependencies on debt 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 | 17.26 | ||
| Altman-Z | 1.12 |
ROIC/WACC1.53
WACC4.94%
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 has a worse Quick ratio (0.65) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ACE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.68%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.17% on average over the past years.
ACE shows a decrease in Revenue. In the last year, the revenue decreased by -8.88%.
The Revenue has been growing slightly by 6.09% on average over the past years.
EPS 1Y (TTM)21.68%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%5.59%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-4.86%
3.2 Future
The Earnings Per Share is expected to grow by 0.39% on average over the next years.
The Revenue is expected to decrease by -2.30% on average over the next years.
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y0.39%
Revenue Next Year-2.22%
Revenue Next 2Y-0.59%
Revenue Next 3Y-0.88%
Revenue Next 5Y-2.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.35, which indicates a very decent valuation of ACE.
ACE's Price/Earnings ratio is rather cheap when compared to the industry. ACE is cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, ACE is valued rather cheaply.
The Price/Forward Earnings ratio is 11.49, which indicates a very decent valuation of ACE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, ACE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
ACE's Enterprise Value to EBITDA is on the same level as the industry average.
61.54% of the companies in the same industry are cheaper than ACE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 5.59 |
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.
ACE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)2.63
EPS Next 2Y1.93%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, ACE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.35, ACE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ACE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
The dividend of ACE is nicely growing with an annual growth rate of 15.14%!
Dividend Growth(5Y)15.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.32% 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.
DP28.32%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
BIT:ACE (5/2/2025, 5:35:15 PM)
20.72
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners7.26%
Inst Owner ChangeN/A
Ins Owners7.74%
Ins Owner ChangeN/A
Market Cap4.41B
Analysts82.22
Price Target20.71 (-0.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend0.7
Dividend Growth(5Y)15.14%
DP28.32%
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)1%
PT rev (3m)1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)18.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 11.49 | ||
| P/S | 0.7 | ||
| P/FCF | 13.47 | ||
| P/OCF | 2.5 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)2.48
EY11.97%
EPS(NY)1.8
Fwd EY8.7%
FCF(TTM)1.54
FCFY7.42%
OCF(TTM)8.29
OCFY40.03%
SpS29.65
BVpS11.76
TBVpS-10.11
PEG (NY)0.5
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 21.06% | ||
| ROCE | 11.27% | ||
| ROIC | 7.57% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 16.44% | ||
| OM | 15.83% | ||
| PM (TTM) | 8.35% | ||
| GM | 54.96% | ||
| FCFM | 5.19% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 17.26 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 202.96% | ||
| Cap/Sales | 22.79% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 103.4% | ||
| Profit Quality | 62.1% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.12 |
F-Score6
WACC4.94%
ROIC/WACC1.53
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)21.68%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%5.59%
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y0.39%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-4.86%
Revenue Next Year-2.22%
Revenue Next 2Y-0.59%
Revenue Next 3Y-0.88%
Revenue Next 5Y-2.3%
EBIT growth 1Y20.34%
EBIT growth 3Y6.24%
EBIT growth 5Y8.69%
EBIT Next Year115.21%
EBIT Next 3Y33.45%
EBIT Next 5Y23.92%
FCF growth 1Y1130.95%
FCF growth 3Y29.26%
FCF growth 5Y-3.89%
OCF growth 1Y59%
OCF growth 3Y31.42%
OCF growth 5Y16.3%