ITALGAS SPA (IG.MI) Stock Fundamental Analysis
BIT:IG - Euronext Milan - IT0005211237 - Common Stock - Currency: EUR
Taking everything into account, IG scores 5 out of 10 in our fundamental rating. IG was compared to 4 industry peers in the Gas Utilities industry. IG scores excellent on profitability, but there are concerns on its financial health. IG is not valued too expensively and it also shows a decent growth rate. IG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year IG was profitable.
In the past 5 years IG has always been profitable.
Each year in the past 5 years IG had a positive operating cash flow.
1.2 Ratios
IG has a better Return On Assets (5.40%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 29.22%, IG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.35%, IG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IG is in line with the industry average of 6.85%.
The last Return On Invested Capital (8.35%) for IG is above the 3 year average (5.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 29.22% | ||
| ROIC | 8.35% |
ROA(3y)3.88%
ROA(5y)3.89%
ROE(3y)19.36%
ROE(5y)19.88%
ROIC(3y)5.76%
ROIC(5y)5.76%
1.3 Margins
IG has a better Profit Margin (21.78%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of IG has declined.
IG has a Operating Margin of 37.31%. This is in the better half of the industry: IG outperforms 75.00% of its industry peers.
IG's Operating Margin has improved in the last couple of years.
IG has a better Gross Margin (65.60%) than 75.00% of its industry peers.
IG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.31% | ||
| PM (TTM) | 21.78% | ||
| GM | 65.6% |
OM growth 3Y5.85%
OM growth 5Y2.8%
PM growth 3Y3.77%
PM growth 5Y-3.36%
GM growth 3Y0.16%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IG is creating value.
The number of shares outstanding for IG remains at a similar level compared to 1 year ago.
IG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that IG is in the distress zone and has some risk of bankruptcy.
IG has a Altman-Z score (1.05) which is comparable to the rest of the industry.
IG has a Debt/Equity ratio of 3.23. This is a high value indicating a heavy dependency on external financing.
IG has a worse Debt to Equity ratio (3.23) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC1.88
WACC4.43%
2.3 Liquidity
A Current Ratio of 1.18 indicates that IG should not have too much problems paying its short term obligations.
IG's Current ratio of 1.18 is in line compared to the rest of the industry. IG outperforms 50.00% of its industry peers.
IG has a Quick Ratio of 1.16. This is a normal value and indicates that IG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IG (1.16) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.12% over the past year.
The Earnings Per Share has been growing slightly by 2.74% on average over the past years.
Looking at the last year, IG shows a small growth in Revenue. The Revenue has grown by 5.79% in the last year.
The Revenue has been growing slightly by 6.37% on average over the past years.
EPS 1Y (TTM)16.12%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%43.28%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%49.26%
3.2 Future
Based on estimates for the next years, IG will show a small growth in Earnings Per Share. The EPS will grow by 6.64% on average per year.
IG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.61% yearly.
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue Next Year26.86%
Revenue Next 2Y19.19%
Revenue Next 3Y15.84%
Revenue Next 5Y12.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
IG is valuated cheaply with a Price/Earnings ratio of 7.25.
Compared to the rest of the industry, the Price/Earnings ratio of IG indicates a rather cheap valuation: IG is cheaper than 100.00% of the companies listed in the same industry.
IG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 10.31 indicates a reasonable valuation of IG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IG indicates a somewhat cheap valuation: IG is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of IG to the average of the S&P500 Index (22.17), we can say IG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
IG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IG is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IG may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)2.65
EPS Next 2Y4.58%
EPS Next 3Y6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.76%, IG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.81, IG pays a bit more dividend than its industry peers.
IG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
5.2 History
On average, the dividend of IG grows each year by 7.56%, which is quite nice.
Dividend Growth(5Y)7.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IG pays out 39.05% of its income as dividend. This is a sustainable payout ratio.
IG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.05%
EPS Next 2Y4.58%
EPS Next 3Y6%
BIT:IG (6/4/2025, 7:00:00 PM)
6.89
-0.06 (-0.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners38.47%
Inst Owner ChangeN/A
Ins Owners4.2%
Ins Owner ChangeN/A
Market Cap5.59B
Analysts77.14
Price Target6.75 (-2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend0.37
Dividend Growth(5Y)7.56%
DP39.05%
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)1.39%
PT rev (3m)6.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)7.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.7%
Revenue NY rev (3m)10.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.31 | ||
| P/S | 1.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.9 |
EPS(TTM)0.95
EY13.79%
EPS(NY)0.67
Fwd EY9.7%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS4.34
BVpS3.24
TBVpS-7.68
PEG (NY)1.21
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 29.22% | ||
| ROCE | 12.03% | ||
| ROIC | 8.35% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 129.66% | ||
| OM | 37.31% | ||
| PM (TTM) | 21.78% | ||
| GM | 65.6% | ||
| FCFM | N/A |
ROA(3y)3.88%
ROA(5y)3.89%
ROE(3y)19.36%
ROE(5y)19.88%
ROIC(3y)5.76%
ROIC(5y)5.76%
ROICexc(3y)5.99%
ROICexc(5y)6.22%
ROICexgc(3y)75.97%
ROICexgc(5y)N/A
ROCE(3y)7.65%
ROCE(5y)7.56%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y2.21%
ROICexc growth 5Y1.43%
OM growth 3Y5.85%
OM growth 5Y2.8%
PM growth 3Y3.77%
PM growth 5Y-3.36%
GM growth 3Y0.16%
GM growth 5Y0.23%
F-ScoreN/A
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.05 |
F-ScoreN/A
WACC4.43%
ROIC/WACC1.88
Cap/Depr(3y)164.61%
Cap/Depr(5y)169.68%
Cap/Sales(3y)35.08%
Cap/Sales(5y)36.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.12%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%43.28%
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%49.26%
Revenue Next Year26.86%
Revenue Next 2Y19.19%
Revenue Next 3Y15.84%
Revenue Next 5Y12.61%
EBIT growth 1Y17.72%
EBIT growth 3Y11.89%
EBIT growth 5Y9.35%
EBIT Next Year112.73%
EBIT Next 3Y37.6%
EBIT Next 5Y24.43%
FCF growth 1Y171.24%
FCF growth 3Y117.41%
FCF growth 5Y51.61%
OCF growth 1Y91.86%
OCF growth 3Y9.38%
OCF growth 5Y8.67%