ACEA SPA (ACE.MI) Stock Fundamental Analysis
BIT:ACE - Euronext Milan - IT0001207098 - Common Stock - Currency: EUR
ACE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Multi-Utilities industry. While ACE has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ACE. Finally 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.
In the past 5 years ACE has always been profitable.
ACE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACE has a better Return On Assets (4.31%) than 84.62% of its industry peers.
With an excellent Return On Equity value of 21.06%, ACE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.57%, ACE is doing good in 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 6.55%.
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 has a better Profit Margin (8.35%) than 84.62% of its industry peers.
In the last couple of years the Profit Margin of ACE has declined.
The Operating Margin of ACE (15.83%) is better than 84.62% of its industry peers.
ACE's Operating Margin has improved in the last couple of years.
The Gross Margin of ACE (54.96%) is better than 76.92% of its industry peers.
In the last couple of years the Gross Margin of ACE has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACE is still creating some value.
ACE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ACE remains at a similar level compared to 5 years ago.
The debt/assets ratio for ACE has been reduced compared to a year ago.
2.2 Solvency
ACE has an Altman-Z score of 1.10. This is a bad value and indicates that ACE is not financially healthy and even has some risk of bankruptcy.
ACE has a Altman-Z score of 1.10. 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.
The Debt to FCF ratio of ACE (17.26) 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.
ACE has a Debt to Equity ratio of 2.00. This is amonst the worse of the industry: ACE underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 17.26 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.6
WACC4.72%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ACE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, ACE is doing worse than 84.62% of the companies in the same industry.
ACE has a Quick Ratio of 0.69. This is a bad value and indicates that ACE is not financially healthy enough and could expect problems in meeting 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 22.43%, which is quite impressive.
ACE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.17% yearly.
ACE shows a decrease in Revenue. In the last year, the revenue decreased by -4.85%.
ACE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.09% yearly.
EPS 1Y (TTM)22.43%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%18.69%
Revenue 1Y (TTM)-4.85%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%7.44%
3.2 Future
ACE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.22% yearly.
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-4.71%
Revenue Next 2Y-2.01%
Revenue Next 3Y-0.85%
Revenue Next 5Y0.47%
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 accelerating.
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
A Price/Earnings ratio of 7.55 indicates a rather cheap valuation of ACE.
84.62% of the companies in the same industry are more expensive than ACE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ACE to the average of the S&P500 Index (27.41), we can say ACE is valued rather cheaply.
A Price/Forward Earnings ratio of 12.00 indicates a reasonable 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.
When comparing the Price/Forward Earnings ratio of ACE to the average of the S&P500 Index (35.19), we can say ACE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 12 |
4.2 Price Multiples
ACE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACE is cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACE is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
The 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)0.45
PEG (5Y)2.38
EPS Next 2Y1.93%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
ACE has a Yearly Dividend Yield of 4.93%, which is a nice return.
ACE's Dividend Yield is a higher than the industry average which is at 5.01.
Compared to an average S&P500 Dividend Yield of 2.35, ACE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
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 (7/11/2025, 7:00:00 PM)
19.25
-0.01 (-0.05%)
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 Cap4.10B
Analysts82.22
Price Target22.03 (14.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)3.05%
PT rev (3m)6.4%
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)0%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 12 | ||
| P/S | 0.65 | ||
| P/FCF | 12.52 | ||
| P/OCF | 2.32 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)2.55
EY13.25%
EPS(NY)1.6
Fwd EY8.33%
FCF(TTM)1.54
FCFY7.99%
OCF(TTM)8.29
OCFY43.09%
SpS29.65
BVpS11.76
TBVpS-10.11
PEG (NY)0.45
PEG (5Y)2.38
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 | 1.1 |
F-Score6
WACC4.72%
ROIC/WACC1.6
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)22.43%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%18.69%
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y4.22%
Revenue 1Y (TTM)-4.85%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%7.44%
Revenue Next Year-4.71%
Revenue Next 2Y-2.01%
Revenue Next 3Y-0.85%
Revenue Next 5Y0.47%
EBIT growth 1Y20.34%
EBIT growth 3Y6.24%
EBIT growth 5Y8.69%
EBIT Next Year116.35%
EBIT Next 3Y33.18%
EBIT Next 5Y26.22%
FCF growth 1Y1130.95%
FCF growth 3Y29.26%
FCF growth 5Y-3.89%
OCF growth 1Y59%
OCF growth 3Y31.42%
OCF growth 5Y16.3%