ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ARN - IT0004720733 - Common Stock
18.66 EUR
+0.22 (+1.19%)
ARN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 19 industry peers in the Independent Power and Renewable Electricity Producers industry. ARN scores excellent on profitability, but there are some minor concerns on its financial health. ARN is not overvalued while it is showing excellent growth. This is an interesting 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.
Each year in the past 5 years ARN has been profitable.
ARN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARN has a Return On Assets of 5.60%. This is amongst the best in the industry. ARN outperforms 84.21% of its industry peers.
ARN has a better Return On Equity (24.32%) than 89.47% of its industry peers.
ARN has a Return On Invested Capital of 7.64%. This is amongst the best in the industry. ARN outperforms 84.21% of its industry peers.
ARN had an Average Return On Invested Capital over the past 3 years of 9.83%. This is above the industry average of 5.51%.
| 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
Looking at the Profit Margin, with a value of 40.05%, ARN belongs to the top of the industry, outperforming 94.74% 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 (57.46%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ARN has grown nicely.
ARN has a better Gross Margin (93.05%) than 89.47% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARN is creating value.
ARN has less shares outstanding than it did 1 year ago.
ARN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that ARN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.30, ARN perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
A Debt/Equity ratio of 2.61 is on the high side and indicates that ARN has dependencies on debt financing.
The Debt to Equity ratio of ARN (2.61) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC1.45
WACC5.26%
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.
With a decent Current ratio value of 2.59, ARN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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.
Looking at the last year, ARN shows a very strong growth in Revenue. The Revenue has grown by 30.89%.
ARN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.12% yearly.
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
The Earnings Per Share is expected to grow by 13.95% on average over the next years. This is quite good.
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 Y1.36%
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.
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
ARN is valuated reasonably with a Price/Earnings ratio of 11.96.
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.
The average S&P500 Price/Earnings ratio is at 26.60. ARN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.76, the valuation of ARN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARN is valued a bit cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ARN has an outstanding profitability rating, which 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)8.83
PEG (5Y)0.35
EPS Next 2Y6.94%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, ARN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.23, ARN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ARN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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
39.74% 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.
DP39.74%
EPS Next 2Y6.94%
EPS Next 3Y12.54%
BIT:ARN (1/2/2026, 7:00:00 PM)
18.66
+0.22 (+1.19%)
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 Cap1.01B
Revenue(TTM)208.23M
Net Income(TTM)83.39M
Analysts84
Price Target24.99 (33.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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)-0.53%
EPS NY rev (3m)-0.53%
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 | 11.96 | ||
| Fwd PE | 8.76 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | 13.57 | ||
| P/B | 2.95 | ||
| P/tB | 18.12 | ||
| EV/EBITDA | 8.99 |
EPS(TTM)1.56
EY8.36%
EPS(NY)2.13
Fwd EY11.42%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)1.37
OCFY7.37%
SpS3.84
BVpS6.32
TBVpS1.03
PEG (NY)8.83
PEG (5Y)0.35
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 | 1.3 |
F-Score6
WACC5.26%
ROIC/WACC1.45
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 Y1.36%
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.
Can you provide the valuation status for ALERION CLEANPOWER?
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.
What is the valuation of ALERION CLEANPOWER based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALERION CLEANPOWER (ARN.MI) is 11.96 and the Price/Book (PB) ratio is 2.95.
How sustainable is the dividend of ALERION CLEANPOWER (ARN.MI) stock?
The dividend rating of ALERION CLEANPOWER (ARN.MI) is 6 / 10 and the dividend payout ratio is 39.74%.