IREN SPA (IRE.MI) Stock Fundamental Analysis
BIT:IRE - Euronext Milan - IT0003027817 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to IRE. IRE was compared to 13 industry peers in the Multi-Utilities industry. While IRE is still in line with the averages on profitability rating, there are concerns on its financial health. IRE is not valued too expensively and it also shows a decent growth rate. Finally IRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IRE had positive earnings in the past year.
IRE had a positive operating cash flow in the past year.
Each year in the past 5 years IRE has been profitable.
Each year in the past 5 years IRE had a positive operating cash flow.
1.2 Ratios
IRE has a better Return On Assets (3.59%) than 69.23% of its industry peers.
IRE has a Return On Equity of 15.23%. This is in the better half of the industry: IRE outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.39%, IRE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
IRE had an Average Return On Invested Capital over the past 3 years of 4.03%. This is below the industry average of 6.45%.
The last Return On Invested Capital (6.39%) for IRE is above the 3 year average (4.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 15.23% | ||
| ROIC | 6.39% |
ROA(3y)2.1%
ROA(5y)2.36%
ROE(3y)8.88%
ROE(5y)9.69%
ROIC(3y)4.03%
ROIC(5y)4.1%
1.3 Margins
IRE's Profit Margin of 4.93% is on the low side compared to the rest of the industry. IRE is outperformed by 61.54% of its industry peers.
In the last couple of years the Profit Margin of IRE has declined.
IRE's Operating Margin of 9.50% is on the low side compared to the rest of the industry. IRE is outperformed by 61.54% of its industry peers.
IRE's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 63.19%, IRE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Gross Margin of IRE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 4.93% | ||
| GM | 63.19% |
OM growth 3Y-3.32%
OM growth 5Y-4.67%
PM growth 3Y-10.2%
PM growth 5Y-4.72%
GM growth 3Y2.02%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRE is still creating some value.
Compared to 1 year ago, IRE has about the same amount of shares outstanding.
The number of shares outstanding for IRE has been reduced compared to 5 years ago.
Compared to 1 year ago, IRE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that IRE is in the distress zone and has some risk of bankruptcy.
IRE's Altman-Z score of 1.32 is fine compared to the rest of the industry. IRE outperforms 76.92% of its industry peers.
IRE has a debt to FCF ratio of 19.79. This is a negative value and a sign of low solvency as IRE would need 19.79 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.79, IRE is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
IRE has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
IRE has a Debt to Equity ratio of 1.71. This is in the lower half of the industry: IRE underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.37
WACC4.68%
2.3 Liquidity
IRE has a Current Ratio of 0.89. This is a bad value and indicates that IRE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.89, IRE is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that IRE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, IRE is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
IRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, which is quite good.
The Earnings Per Share has been growing slightly by 2.80% on average over the past years.
The Revenue has been growing slightly by 1.83% in the past year.
Measured over the past years, IRE shows a small growth in Revenue. The Revenue has been growing by 7.66% on average per year.
EPS 1Y (TTM)9.9%
EPS 3Y-3.11%
EPS 5Y2.8%
EPS Q2Q%11.03%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y6.94%
Revenue growth 5Y7.66%
Sales Q2Q%33.26%
3.2 Future
Based on estimates for the next years, IRE will show a small growth in Earnings Per Share. The EPS will grow by 5.75% on average per year.
IRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.97% yearly.
EPS Next Y14.17%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue Next Year15.47%
Revenue Next 2Y7.4%
Revenue Next 3Y5.41%
Revenue Next 5Y1.97%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.65 indicates a rather cheap valuation of IRE.
Compared to the rest of the industry, the Price/Earnings ratio of IRE indicates a rather cheap valuation: IRE is cheaper than 92.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.30. IRE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.11, the valuation of IRE can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRE indicates a somewhat cheap valuation: IRE is cheaper than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, IRE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than IRE, based on the Enterprise Value to EBITDA ratio.
IRE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.54
PEG (5Y)2.73
EPS Next 2Y7.19%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
IRE has a Yearly Dividend Yield of 4.79%, which is a nice return.
IRE's Dividend Yield is a higher than the industry average which is at 5.20.
Compared to an average S&P500 Dividend Yield of 2.38, IRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
On average, the dividend of IRE grows each year by 15.97%, which is quite nice.
Dividend Growth(5Y)15.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IRE pays out 43.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of IRE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.33%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
BIT:IRE (6/6/2025, 3:14:01 PM)
2.678
-0.02 (-0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.86%
Inst Owner ChangeN/A
Ins Owners3.85%
Ins Owner ChangeN/A
Market Cap3.48B
Analysts86.67
Price Target2.7 (0.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend0.15
Dividend Growth(5Y)15.97%
DP43.33%
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)13.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.39 | ||
| P/FCF | 13.77 | ||
| P/OCF | 3.22 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.35
EY13.07%
EPS(NY)0.24
Fwd EY9%
FCF(TTM)0.19
FCFY7.26%
OCF(TTM)0.83
OCFY31.09%
SpS6.82
BVpS2.21
TBVpS-0.56
PEG (NY)0.54
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 15.23% | ||
| ROCE | 9.33% | ||
| ROIC | 6.39% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 10.9% | ||
| OM | 9.5% | ||
| PM (TTM) | 4.93% | ||
| GM | 63.19% | ||
| FCFM | 2.85% |
ROA(3y)2.1%
ROA(5y)2.36%
ROE(3y)8.88%
ROE(5y)9.69%
ROIC(3y)4.03%
ROIC(5y)4.1%
ROICexc(3y)4.46%
ROICexc(5y)4.62%
ROICexgc(3y)7.57%
ROICexgc(5y)7.78%
ROCE(3y)5.79%
ROCE(5y)5.81%
ROICexcg growth 3Y-9.11%
ROICexcg growth 5Y-2.08%
ROICexc growth 3Y-7.83%
ROICexc growth 5Y-3.46%
OM growth 3Y-3.32%
OM growth 5Y-4.67%
PM growth 3Y-10.2%
PM growth 5Y-4.72%
GM growth 3Y2.02%
GM growth 5Y-0.89%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 126.66% | ||
| Cap/Sales | 9.35% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 72.29% | ||
| Profit Quality | 57.75% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.32 |
F-Score5
WACC4.68%
ROIC/WACC1.37
Cap/Depr(3y)147.56%
Cap/Depr(5y)N/A
Cap/Sales(3y)13.17%
Cap/Sales(5y)14.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.9%
EPS 3Y-3.11%
EPS 5Y2.8%
EPS Q2Q%11.03%
EPS Next Y14.17%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue 1Y (TTM)1.83%
Revenue growth 3Y6.94%
Revenue growth 5Y7.66%
Sales Q2Q%33.26%
Revenue Next Year15.47%
Revenue Next 2Y7.4%
Revenue Next 3Y5.41%
Revenue Next 5Y1.97%
EBIT growth 1Y11.03%
EBIT growth 3Y3.4%
EBIT growth 5Y2.64%
EBIT Next Year157.81%
EBIT Next 3Y41.03%
EBIT Next 5Y24.55%
FCF growth 1Y235.77%
FCF growth 3Y9.49%
FCF growth 5Y4.74%
OCF growth 1Y59.22%
OCF growth 3Y4.45%
OCF growth 5Y8.37%