ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
BIT:ARN - Euronext Milan - IT0004720733 - Common Stock - Currency: EUR
Overall ARN gets a fundamental rating of 6 out of 10. We evaluated ARN against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. While ARN has a great profitability rating, there are quite some concerns on its financial health. ARN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! ARN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARN was profitable.
In the past year ARN had a positive cash flow from operations.
Each year in the past 5 years ARN has been profitable.
Each year in the past 5 years ARN had a positive operating cash flow.
1.2 Ratios
ARN has a better Return On Assets (5.66%) than 95.00% of its industry peers.
The Return On Equity of ARN (26.12%) is better than 95.00% of its industry peers.
ARN has a Return On Invested Capital of 8.49%. This is amongst the best in the industry. ARN outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARN is significantly above the industry average of 3.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 26.12% | ||
| ROIC | 8.49% |
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
ARN's Profit Margin of 42.86% is amongst the best of the industry. ARN outperforms 85.00% of its industry peers.
ARN's Profit Margin has improved in the last couple of years.
ARN's Operating Margin of 59.54% is amongst the best of the industry. ARN outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of ARN has grown nicely.
ARN has a Gross Margin of 94.20%. This is amongst the best in the industry. ARN outperforms 90.00% of its industry peers.
In the last couple of years the Gross Margin of ARN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.54% | ||
| PM (TTM) | 42.86% | ||
| GM | 94.2% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARN is creating value.
The number of shares outstanding for ARN has been reduced compared to 1 year ago.
The number of shares outstanding for ARN has been increased compared to 5 years ago.
ARN has a worse debt/assets ratio than last year.
2.2 Solvency
ARN has an Altman-Z score of 1.14. This is a bad value and indicates that ARN is not financially healthy and even has some risk of bankruptcy.
ARN has a Altman-Z score (1.14) which is in line with its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that ARN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.38, ARN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.14 |
ROIC/WACC1.67
WACC5.07%
2.3 Liquidity
A Current Ratio of 1.89 indicates that ARN should not have too much problems paying its short term obligations.
ARN's Current ratio of 1.89 is fine compared to the rest of the industry. ARN outperforms 80.00% of its industry peers.
A Quick Ratio of 1.84 indicates that ARN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.84, ARN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
ARN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.21%, which is quite impressive.
The Earnings Per Share has been growing by 33.73% on average over the past years. This is a very strong growth
Looking at the last year, ARN shows a very strong growth in Revenue. The Revenue has grown by 36.33%.
Measured over the past years, ARN shows a very strong growth in Revenue. The Revenue has been growing by 26.12% on average per year.
EPS 1Y (TTM)44.21%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%370.08%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%83.03%
3.2 Future
The Earnings Per Share is expected to grow by 13.95% on average over the next years. This is quite good.
Based on estimates for the next years, ARN will show a quite strong growth in Revenue. The Revenue will grow by 16.39% on average per year.
EPS Next Y-44.44%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
EPS Next 5Y13.95%
Revenue Next Year-14.8%
Revenue Next 2Y-1.06%
Revenue Next 3Y8.55%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.18, the valuation of ARN can be described as very reasonable.
Based on the Price/Earnings ratio, ARN is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, ARN is valued rather cheaply.
The Price/Forward Earnings ratio is 14.14, which indicates a correct valuation of ARN.
65.00% of the companies in the same industry are more expensive than ARN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ARN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
ARN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARN is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The excellent profitability rating of ARN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
5. Dividend
5.1 Amount
ARN has a Yearly Dividend Yield of 4.28%, which is a nice return.
Compared to an average industry Dividend Yield of 3.80, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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
34.74% of the earnings are spent on dividend by ARN. This is a low number and sustainable payout ratio.
The dividend of ARN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.74%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
BIT:ARN (5/29/2025, 3:48:13 PM)
14.64
+0.4 (+2.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners1.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap793.93M
Analysts84
Price Target23.46 (60.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend0.62
Dividend Growth(5Y)78.76%
DP34.74%
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)0%
PT rev (3m)-11.54%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)21.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 14.14 | ||
| P/S | 3.55 | ||
| P/FCF | N/A | ||
| P/OCF | 13.46 | ||
| P/B | 2.16 | ||
| P/tB | 7.89 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)1.79
EY12.23%
EPS(NY)1.04
Fwd EY7.07%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.09
OCFY7.43%
SpS4.12
BVpS6.76
TBVpS1.86
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 26.12% | ||
| ROCE | 10.04% | ||
| ROIC | 8.49% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 13.87% | ||
| OM | 59.54% | ||
| PM (TTM) | 42.86% | ||
| GM | 94.2% | ||
| 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%
ROICexcg growth 3Y28.39%
ROICexcg 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-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 159.37% | ||
| Cap/Sales | 37.73% | ||
| Interest Coverage | 4.74 | ||
| Cash Conversion | 31.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 1.14 |
F-Score7
WACC5.07%
ROIC/WACC1.67
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)44.21%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%370.08%
EPS Next Y-44.44%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
EPS Next 5Y13.95%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%83.03%
Revenue Next Year-14.8%
Revenue Next 2Y-1.06%
Revenue Next 3Y8.55%
Revenue Next 5Y16.39%
EBIT growth 1Y36.08%
EBIT growth 3Y20.12%
EBIT growth 5Y37.49%
EBIT Next Year23.24%
EBIT Next 3Y18.77%
EBIT Next 5Y7.61%
FCF growth 1Y-186.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.57%
OCF growth 3Y-20.38%
OCF growth 5Y-1.87%