ITALGAS SPA (IG.MI) Stock Fundamental Analysis
BIT:IG - Euronext Milan - IT0005211237 - Common Stock - Currency: EUR
Overall IG gets a fundamental rating of 5 out of 10. We evaluated IG against 4 industry peers in the Gas Utilities industry. IG has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on IG.
1. Profitability
1.1 Basic Checks
In the past year IG was profitable.
In the past year IG had a positive cash flow from operations.
IG had positive earnings in each of the past 5 years.
In the past 5 years IG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.99%, IG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
IG has a better Return On Equity (29.16%) than 100.00% of its industry peers.
The Return On Invested Capital of IG (9.41%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IG is in line with the industry average of 7.29%.
The last Return On Invested Capital (9.41%) for IG is above the 3 year average (5.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.16% | ||
| ROIC | 9.41% |
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
With a decent Profit Margin value of 21.82%, IG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
IG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.25%, IG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of IG has grown nicely.
With a decent Gross Margin value of 70.39%, IG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of IG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.25% | ||
| PM (TTM) | 21.82% | ||
| GM | 70.39% |
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.
IG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, IG has more shares outstanding
Compared to 1 year ago, IG has an improved debt to assets ratio.
2.2 Solvency
IG has an Altman-Z score of 1.05. This is a bad value and indicates that IG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, IG is in line with its industry, outperforming 50.00% of the companies in the same industry.
IG has a debt to FCF ratio of 34.87. This is a negative value and a sign of low solvency as IG would need 34.87 years to pay back of all of its debts.
IG has a Debt to FCF ratio (34.87) which is in line with its industry peers.
IG has a Debt/Equity ratio of 2.65. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.65, IG 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 | 2.65 | ||
| Debt/FCF | 34.87 | ||
| Altman-Z | 1.05 |
ROIC/WACC2.09
WACC4.5%
2.3 Liquidity
A Current Ratio of 0.73 indicates that IG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, IG is doing worse than 75.00% of the companies in the same industry.
IG has a Quick Ratio of 0.73. This is a bad value and indicates that IG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.70, IG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
IG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.77%, which is quite good.
Measured over the past 5 years, IG shows a small growth in Earnings Per Share. The EPS has been growing by 2.74% on average per year.
The Revenue has decreased by -0.21% in the past year.
The Revenue has been growing slightly by 6.37% on average over the past years.
EPS 1Y (TTM)10.77%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%7.6%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%195.11%
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.
Based on estimates for the next years, IG will show a quite strong growth in Revenue. The Revenue will grow by 12.61% on average per year.
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue Next Year20.02%
Revenue Next 2Y16.58%
Revenue Next 3Y13.67%
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
With a Price/Earnings ratio of 8.16, the valuation of IG can be described as very reasonable.
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 28.18.
The Price/Forward Earnings ratio is 11.09, which indicates a very decent valuation of IG.
IG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IG is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IG to the average of the S&P500 Index (20.81), we can say IG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IG indicates a somewhat cheap valuation: IG is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.29 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
IG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of IG may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)2.98
EPS Next 2Y4.58%
EPS Next 3Y6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, IG is a good candidate for dividend investing.
IG's Dividend Yield is comparable with the industry average which is at 5.75.
Compared to an average S&P500 Dividend Yield of 2.45, IG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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
41.84% of the earnings are spent on dividend by IG. This is a bit on the high side, but may be sustainable.
The dividend of IG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.84%
EPS Next 2Y4.58%
EPS Next 3Y6%
BIT:IG (5/5/2025, 12:10:38 PM)
7.18
+0.02 (+0.28%)
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 Cap5.83B
Analysts77.14
Price Target6.66 (-7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.37
Dividend Growth(5Y)7.56%
DP41.84%
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)1
Avg Revenue beat(2)72.26%
Min Revenue beat(2)-7.51%
Max Revenue beat(2)152.03%
Revenue beat(4)1
Avg Revenue beat(4)31.75%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)152.03%
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)4.51%
PT rev (3m)7.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.12%
EPS NY rev (3m)5.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 11.09 | ||
| P/S | 1.77 | ||
| P/FCF | 28.29 | ||
| P/OCF | 5.3 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)0.88
EY12.26%
EPS(NY)0.65
Fwd EY9.02%
FCF(TTM)0.25
FCFY3.54%
OCF(TTM)1.35
OCFY18.85%
SpS4.05
BVpS3.03
TBVpS-7.85
PEG (NY)1.36
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.16% | ||
| ROCE | 12.53% | ||
| ROIC | 9.41% | ||
| ROICexc | 9.81% | ||
| ROICexgc | 112.17% | ||
| OM | 37.25% | ||
| PM (TTM) | 21.82% | ||
| GM | 70.39% | ||
| FCFM | 6.27% |
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-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 34.87 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 166.37% | ||
| Cap/Sales | 27.18% | ||
| Interest Coverage | 11.39 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 28.75% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.05 |
F-Score6
WACC4.5%
ROIC/WACC2.09
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)10.77%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%7.6%
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%195.11%
Revenue Next Year20.02%
Revenue Next 2Y16.58%
Revenue Next 3Y13.67%
Revenue Next 5Y12.61%
EBIT growth 1Y11.54%
EBIT growth 3Y11.89%
EBIT growth 5Y9.35%
EBIT Next Year92.01%
EBIT Next 3Y33.07%
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%