ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
Europe - BIT:ARN - IT0004720733 - Common Stock
18.86 EUR
-0.24 (-1.26%)
We assign a fundamental rating of 6 out of 10 to ARN. ARN was compared to 22 industry peers in the Independent Power and Renewable Electricity Producers industry. While ARN belongs to the best of the industry regarding profitability, there are concerns on its financial health. ARN is growing strongly while it is still valued neutral. This is a good combination!
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.
In the past 5 years ARN has always been profitable.
Each year in the past 5 years ARN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARN (5.66%) is better than 80.95% of its industry peers.
Looking at the Return On Equity, with a value of 26.12%, ARN belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.49%, ARN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARN is above the industry average of 5.58%.
| 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
Looking at the Profit Margin, with a value of 42.86%, ARN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ARN's Profit Margin has improved in the last couple of years.
ARN has a better Operating Margin (59.54%) than 95.24% of its industry peers.
ARN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 94.20%, ARN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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
ARN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ARN has less shares outstanding
ARN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARN has a worse debt to assets ratio.
2.2 Solvency
ARN has an Altman-Z score of 1.26. 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 (1.26) is comparable to the rest of the industry.
ARN has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.38, ARN is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC1.6
WACC5.32%
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.
Looking at the Current ratio, with a value of 1.89, ARN is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that ARN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.84, ARN is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| 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.
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 36.33% 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)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
With a Price/Earnings ratio of 10.54, the valuation of ARN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ARN indicates a rather cheap valuation: ARN is cheaper than 80.95% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARN to the average of the S&P500 Index (27.32), we can say ARN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.93, the valuation of ARN can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARN to the average of the S&P500 Index (22.89), we can say ARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARN indicates a somewhat cheap valuation: ARN is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.85 |
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)5.55
PEG (5Y)0.31
EPS Next 2Y6.94%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
ARN has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
ARN's Dividend Yield is a higher than the industry average which is at 3.39.
ARN's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
ARN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.74%
EPS Next 2Y6.94%
EPS Next 3Y11.39%
BIT:ARN (9/26/2025, 7:00:00 PM)
18.86
-0.24 (-1.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners0.81%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.02B
Analysts84
Price Target24.48 (29.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)0%
EPS NY rev (3m)83.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)22.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.93 | ||
| P/S | 4.58 | ||
| P/FCF | N/A | ||
| P/OCF | 17.34 | ||
| P/B | 2.79 | ||
| P/tB | 10.16 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)1.79
EY9.49%
EPS(NY)1.9
Fwd EY10.07%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.09
OCFY5.77%
SpS4.12
BVpS6.76
TBVpS1.86
PEG (NY)5.55
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 | 1.26 |
F-Score7
WACC5.32%
ROIC/WACC1.6
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%