IREN SPA (IRE.MI) Stock Fundamental Analysis
BIT:IRE - Euronext Milan - IT0003027817 - Common Stock - Currency: EUR
IRE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 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 has a decent growth rate and is not valued too expensively. Finally IRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IRE had positive earnings in the past year.
In the past year IRE had a positive cash flow from operations.
Each year in the past 5 years IRE has been profitable.
In the past 5 years IRE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.59%, IRE is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Return On Equity of IRE (15.23%) is better than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.39%, IRE is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IRE is below the industry average of 6.57%.
The 3 year average ROIC (4.03%) for IRE is below the current ROIC(6.39%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 4.93%, IRE perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
IRE's Profit Margin has declined in the last couple of years.
IRE's Operating Margin of 9.50% is in line compared to the rest of the industry. IRE outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of IRE has declined.
IRE has a better Gross Margin (63.19%) than 83.33% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRE is creating some value.
The number of shares outstanding for IRE remains at a similar level compared to 1 year ago.
The number of shares outstanding for IRE has been reduced compared to 5 years ago.
The debt/assets ratio for IRE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that IRE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IRE (1.30) is better than 75.00% 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.
The Debt to FCF ratio of IRE (19.79) is comparable to the rest of the industry.
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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.44
WACC4.43%
2.3 Liquidity
A Current Ratio of 0.89 indicates that IRE may have some problems paying its short term obligations.
IRE's Current ratio of 0.89 is on the low side compared to the rest of the industry. IRE is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.86 indicates that IRE may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, IRE perfoms like the industry average, outperforming 41.67% 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.
The Revenue has been growing slightly by 7.66% on average over the past years.
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
IRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.75% yearly.
The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y14.17%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue Next Year13.53%
Revenue Next 2Y6.99%
Revenue Next 3Y5.44%
Revenue Next 5Y1.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.34, the valuation of IRE can be described as very cheap.
83.33% of the companies in the same industry are more expensive than IRE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.11. IRE is valued rather cheaply when compared to this.
IRE is valuated reasonably with a Price/Forward Earnings ratio of 10.66.
Based on the Price/Forward Earnings ratio, IRE is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.78. IRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRE indicates a somewhat cheap valuation: IRE is cheaper than 75.00% of the companies listed in the same industry.
IRE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 5 |
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)0.52
PEG (5Y)2.62
EPS Next 2Y7.19%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, IRE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.07, IRE pays a bit more dividend than its industry peers.
IRE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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.
IRE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.33%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
BIT:IRE (8/14/2025, 5:35:15 PM)
2.57
+0.04 (+1.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners13.33%
Inst Owner ChangeN/A
Ins Owners3.85%
Ins Owner ChangeN/A
Market Cap3.34B
Analysts88
Price Target2.92 (13.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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)2.51%
PT rev (3m)7.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.38 | ||
| P/FCF | 13.22 | ||
| P/OCF | 3.09 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5 |
EPS(TTM)0.35
EY13.62%
EPS(NY)0.24
Fwd EY9.38%
FCF(TTM)0.19
FCFY7.57%
OCF(TTM)0.83
OCFY32.4%
SpS6.82
BVpS2.21
TBVpS-0.56
PEG (NY)0.52
PEG (5Y)2.62
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 | 1.3 |
F-Score5
WACC4.43%
ROIC/WACC1.44
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 Year13.53%
Revenue Next 2Y6.99%
Revenue Next 3Y5.44%
Revenue Next 5Y1.38%
EBIT growth 1Y11.03%
EBIT growth 3Y3.4%
EBIT growth 5Y2.64%
EBIT Next Year157.81%
EBIT Next 3Y41.03%
EBIT Next 5Y23.84%
FCF growth 1Y235.77%
FCF growth 3Y9.49%
FCF growth 5Y4.74%
OCF growth 1Y59.22%
OCF growth 3Y4.45%
OCF growth 5Y8.37%