ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
BIT:ARN - IT0004720733 - Common Stock
18.78 EUR
+0.24 (+1.29%)
We assign a fundamental rating of 6 out of 10 to ARN. ARN was compared to 21 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!
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.
In the past 5 years ARN always reported a positive cash flow from operatings.
1.2 Ratios
ARN has a Return On Assets of 5.66%. This is amongst the best in the industry. ARN outperforms 85.71% of its industry peers.
ARN has a Return On Equity of 26.12%. This is amongst the best in the industry. ARN outperforms 95.24% of its industry peers.
The Return On Invested Capital of ARN (8.49%) is better than 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARN is above the industry average of 5.13%.
| 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 85.71% of its industry peers.
ARN's Profit Margin has improved in the last couple of years.
The Operating Margin of ARN (59.54%) is better than 95.24% of its industry peers.
ARN's Operating Margin has improved in the last couple of years.
ARN's Gross Margin of 94.20% is amongst the best of the industry. ARN outperforms 90.48% of its industry peers.
ARN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ARN has less shares outstanding
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 1.25. This is a bad value and indicates that ARN is not financially healthy and even has some risk of bankruptcy.
ARN's Altman-Z score of 1.25 is in line compared to the rest of the industry. ARN outperforms 47.62% of its industry peers.
ARN has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
ARN has a worse Debt to Equity ratio (2.38) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC1.61
WACC5.28%
2.3 Liquidity
ARN has a Current Ratio of 1.89. This is a normal value and indicates that ARN is financially healthy and should not expect problems in meeting its short term obligations.
ARN has a Current ratio of 1.89. This is in the better half of the industry: ARN outperforms 76.19% of its industry peers.
A Quick Ratio of 1.84 indicates that ARN should not have too much problems paying its short term obligations.
ARN has a Quick ratio of 1.84. This is in the better half of the industry: ARN outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.21% over the past year.
The Earnings Per Share has been growing by 33.73% on average over the past years. This is a very strong growth
ARN shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, ARN will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.95% on average per year.
ARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.39% yearly.
EPS Next Y1.9%
EPS Next 2Y6.94%
EPS Next 3Y11.39%
EPS Next 5Y13.95%
Revenue Next Year4.31%
Revenue Next 2Y9.45%
Revenue Next 3Y11.48%
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
The Price/Earnings ratio is 10.49, which indicates a very decent valuation of ARN.
Compared to the rest of the industry, the Price/Earnings ratio of ARN indicates a somewhat cheap valuation: ARN is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. ARN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.89, which indicates a very decent valuation of ARN.
85.71% of the companies in the same industry are more expensive than ARN, based on the Price/Forward Earnings ratio.
ARN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
ARN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARN does not grow enough to justify the current Price/Earnings ratio.
ARN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.53
PEG (5Y)0.31
EPS Next 2Y6.94%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
ARN has a Yearly Dividend Yield of 3.18%.
ARN's Dividend Yield is a higher than the industry average which is at 3.64.
ARN's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of ARN is nicely growing with an annual growth rate of 78.76%!
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 2Y6.94%
EPS Next 3Y11.39%
BIT:ARN (9/5/2025, 5:29:30 PM)
18.78
+0.24 (+1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners0.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.02B
Analysts84
Price Target24.48 (30.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)4.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)83.41%
EPS NY rev (3m)83.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)22.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.89 | ||
| P/S | 4.56 | ||
| P/FCF | N/A | ||
| P/OCF | 17.26 | ||
| P/B | 2.78 | ||
| P/tB | 10.12 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)1.79
EY9.53%
EPS(NY)1.9
Fwd EY10.11%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.09
OCFY5.79%
SpS4.12
BVpS6.76
TBVpS1.86
PEG (NY)5.53
PEG (5Y)0.31
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 | 1.25 |
F-Score7
WACC5.28%
ROIC/WACC1.61
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 Y1.9%
EPS Next 2Y6.94%
EPS Next 3Y11.39%
EPS Next 5Y13.95%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%83.03%
Revenue Next Year4.31%
Revenue Next 2Y9.45%
Revenue Next 3Y11.48%
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%