ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ARN - IT0004720733 - Common Stock
17.88 EUR
+0.06 (+0.34%)
Taking everything into account, ARN scores 7 out of 10 in our fundamental rating. ARN was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. While ARN has a great profitability rating, there are some minor concerns on its financial health. ARN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ARN had positive earnings in the past year.
ARN had a positive operating cash flow in the past year.
ARN had positive earnings in each of the past 5 years.
In the past 5 years ARN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.60%, ARN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
With an excellent Return On Equity value of 24.32%, ARN belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
ARN's Return On Invested Capital of 7.64% is amongst the best of the industry. ARN outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARN is above the industry average of 5.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 24.32% | ||
| ROIC | 7.64% |
ROA(3y)5.37%
ROA(5y)4.85%
ROE(3y)23.57%
ROE(5y)21.49%
ROIC(3y)9.83%
ROIC(5y)8.05%
1.3 Margins
The Profit Margin of ARN (40.05%) is better than 94.74% of its industry peers.
In the last couple of years the Profit Margin of ARN has grown nicely.
With an excellent Operating Margin value of 57.46%, ARN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ARN's Operating Margin has improved in the last couple of years.
ARN's Gross Margin of 93.05% is amongst the best of the industry. ARN outperforms 89.47% of its industry peers.
ARN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.46% | ||
| PM (TTM) | 40.05% | ||
| GM | 93.05% |
OM growth 3Y4.83%
OM growth 5Y9.01%
PM growth 3Y9.32%
PM growth 5Y7.35%
GM growth 3Y-1.32%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
ARN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ARN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ARN has been increased compared to 5 years ago.
The debt/assets ratio for ARN is higher compared to a year ago.
2.2 Solvency
ARN has an Altman-Z score of 1.28. This is a bad value and indicates that ARN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ARN (1.28) is comparable to the rest of the industry.
ARN has a Debt/Equity ratio of 2.61. This is a high value indicating a heavy dependency on external financing.
ARN has a Debt to Equity ratio of 2.61. This is in the lower half of the industry: ARN underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC1.47
WACC5.19%
2.3 Liquidity
ARN has a Current Ratio of 2.59. This indicates that ARN is financially healthy and has no problem in meeting its short term obligations.
ARN's Current ratio of 2.59 is fine compared to the rest of the industry. ARN outperforms 78.95% of its industry peers.
ARN has a Quick Ratio of 2.48. This indicates that ARN is financially healthy and has no problem in meeting its short term obligations.
ARN's Quick ratio of 2.48 is fine compared to the rest of the industry. ARN outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 143.44% over the past year.
ARN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.73% yearly.
The Revenue has grown by 30.89% in the past year. This is a very strong growth!
The Revenue has been growing by 26.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)143.44%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%-70.27%
Revenue 1Y (TTM)30.89%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%-18.69%
3.2 Future
ARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.95% yearly.
The Revenue is expected to grow by 16.39% on average over the next years. This is quite good.
EPS Next Y-67.48%
EPS Next 2Y6.94%
EPS Next 3Y12.54%
EPS Next 5Y13.95%
Revenue Next Year4.31%
Revenue Next 2Y10.92%
Revenue Next 3Y12.97%
Revenue Next 5Y16.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.46, which indicates a very decent valuation of ARN.
ARN's Price/Earnings ratio is rather cheap when compared to the industry. ARN is cheaper than 89.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.26, ARN is valued rather cheaply.
ARN is valuated reasonably with a Price/Forward Earnings ratio of 8.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARN indicates a rather cheap valuation: ARN is cheaper than 84.21% of the companies listed in the same industry.
ARN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
ARN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
The excellent profitability rating of ARN may justify a higher PE ratio.
ARN's earnings are expected to grow with 12.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y6.94%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
ARN has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, ARN pays a bit more dividend than its industry peers.
ARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of ARN grows each year by 78.76%, which is quite nice.
Dividend Growth(5Y)78.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.74% of the earnings are spent on dividend by ARN. This is a low number and sustainable payout ratio.
ARN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.74%
EPS Next 2Y6.94%
EPS Next 3Y12.54%
BIT:ARN (12/19/2025, 3:57:03 PM)
17.88
+0.06 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners0.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap969.63M
Revenue(TTM)208.23M
Net Income(TTM)83.39M
Analysts84
Price Target24.99 (39.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend0.62
Dividend Growth(5Y)78.76%
DP39.74%
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)2.08%
PT rev (3m)2.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-68.09%
EPS NY rev (3m)-68.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 8.39 | ||
| P/S | 4.66 | ||
| P/FCF | N/A | ||
| P/OCF | 13.01 | ||
| P/B | 2.83 | ||
| P/tB | 17.37 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)1.56
EY8.72%
EPS(NY)2.13
Fwd EY11.92%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)1.37
OCFY7.69%
SpS3.84
BVpS6.32
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.34
Graham Number14.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 24.32% | ||
| ROCE | 9.04% | ||
| ROIC | 7.64% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 14.27% | ||
| OM | 57.46% | ||
| PM (TTM) | 40.05% | ||
| GM | 93.05% | ||
| FCFM | N/A |
ROA(3y)5.37%
ROA(5y)4.85%
ROE(3y)23.57%
ROE(5y)21.49%
ROIC(3y)9.83%
ROIC(5y)8.05%
ROICexc(3y)15.03%
ROICexc(5y)11.56%
ROICexgc(3y)21.72%
ROICexgc(5y)16.52%
ROCE(3y)11.63%
ROCE(5y)9.53%
ROICexgc growth 3Y28.39%
ROICexgc growth 5Y34%
ROICexc growth 3Y22.23%
ROICexc growth 5Y30.27%
OM growth 3Y4.83%
OM growth 5Y9.01%
PM growth 3Y9.32%
PM growth 5Y7.35%
GM growth 3Y-1.32%
GM growth 5Y-0.55%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | 172.59% | ||
| Cap/Sales | 43.33% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 43.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 1.28 |
F-Score6
WACC5.19%
ROIC/WACC1.47
Cap/Depr(3y)142.88%
Cap/Depr(5y)116.61%
Cap/Sales(3y)34.77%
Cap/Sales(5y)29.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)143.44%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%-70.27%
EPS Next Y-67.48%
EPS Next 2Y6.94%
EPS Next 3Y12.54%
EPS Next 5Y13.95%
Revenue 1Y (TTM)30.89%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%-18.69%
Revenue Next Year4.31%
Revenue Next 2Y10.92%
Revenue Next 3Y12.97%
Revenue Next 5Y16.39%
EBIT growth 1Y58.9%
EBIT growth 3Y20.12%
EBIT growth 5Y37.49%
EBIT Next Year42.21%
EBIT Next 3Y26.45%
EBIT Next 5Y7.61%
FCF growth 1Y-115.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.42%
OCF growth 3Y-20.38%
OCF growth 5Y-1.87%
ALERION CLEANPOWER / ARN.MI FAQ
What is the fundamental rating for ARN stock?
ChartMill assigns a fundamental rating of 7 / 10 to ARN.MI.
What is the valuation status for ARN stock?
ChartMill assigns a valuation rating of 6 / 10 to ALERION CLEANPOWER (ARN.MI). This can be considered as Fairly Valued.
How profitable is ALERION CLEANPOWER (ARN.MI) stock?
ALERION CLEANPOWER (ARN.MI) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for ARN stock?
The Earnings per Share (EPS) of ALERION CLEANPOWER (ARN.MI) is expected to decline by -67.48% in the next year.
Is the dividend of ALERION CLEANPOWER sustainable?
The dividend rating of ALERION CLEANPOWER (ARN.MI) is 6 / 10 and the dividend payout ratio is 39.74%.