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A2A SPA (A2A.MI) Stock Fundamental Analysis

BIT:A2A - Euronext Milan - IT0001233417 - Common Stock - Currency: EUR

2.161  +0.02 (+0.93%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to A2A. A2A was compared to 13 industry peers in the Multi-Utilities industry. A2A scores excellent on profitability, but there are some minor concerns on its financial health. A2A is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year A2A was profitable.
A2A had a positive operating cash flow in the past year.
A2A had positive earnings in each of the past 5 years.
A2A had a positive operating cash flow in each of the past 5 years.
A2A.MI Yearly Net Income VS EBIT VS OCF VS FCFA2A.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

A2A's Return On Assets of 9.40% is amongst the best of the industry. A2A outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 34.36%, A2A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.67%, A2A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A2A had an Average Return On Invested Capital over the past 3 years of 6.02%. This is in line with the industry average of 6.93%.
The last Return On Invested Capital (15.67%) for A2A is above the 3 year average (6.02%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.4%
ROE 34.36%
ROIC 15.67%
ROA(3y)3.24%
ROA(5y)3.1%
ROE(3y)13.9%
ROE(5y)13.08%
ROIC(3y)6.02%
ROIC(5y)5.54%
A2A.MI Yearly ROA, ROE, ROICA2A.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of A2A (7.37%) is better than 76.92% of its industry peers.
A2A's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 11.24%, A2A perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of A2A has grown nicely.
Looking at the Gross Margin, with a value of 29.02%, A2A is doing worse than 61.54% of the companies in the same industry.
A2A's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.24%
PM (TTM) 7.37%
GM 29.02%
OM growth 3Y21.17%
OM growth 5Y1.6%
PM growth 3Y15.48%
PM growth 5Y4.82%
GM growth 3Y10.04%
GM growth 5Y-0.87%
A2A.MI Yearly Profit, Operating, Gross MarginsA2A.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), A2A is creating value.
Compared to 1 year ago, A2A has about the same amount of shares outstanding.
The number of shares outstanding for A2A has been increased compared to 5 years ago.
Compared to 1 year ago, A2A has a worse debt to assets ratio.
A2A.MI Yearly Shares OutstandingA2A.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
A2A.MI Yearly Total Debt VS Total AssetsA2A.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

A2A has an Altman-Z score of 2.34. This is not the best score and indicates that A2A is in the grey zone with still only limited risk for bankruptcy at the moment.
A2A has a better Altman-Z score (2.34) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that A2A has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 1.16, A2A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF N/A
Altman-Z 2.34
ROIC/WACC3.23
WACC4.85%
A2A.MI Yearly LT Debt VS Equity VS FCFA2A.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.12 indicates that A2A should not have too much problems paying its short term obligations.
A2A's Current ratio of 1.12 is amongst the best of the industry. A2A outperforms 84.62% of its industry peers.
A Quick Ratio of 1.07 indicates that A2A should not have too much problems paying its short term obligations.
A2A has a better Quick ratio (1.07) than 84.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.07
A2A.MI Yearly Current Assets VS Current LiabilitesA2A.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 92.83% over the past year.
The Earnings Per Share has been growing by 17.19% on average over the past years. This is quite good.
The Revenue has grown by 11.06% in the past year. This is quite good.
A2A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.91% yearly.
EPS 1Y (TTM)92.83%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%126.81%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%89.94%

3.2 Future

Based on estimates for the next years, A2A will show a decrease in Earnings Per Share. The EPS will decrease by -7.23% on average per year.
A2A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.53% yearly.
EPS Next Y-19.73%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
EPS Next 5Y-7.23%
Revenue Next Year-6.94%
Revenue Next 2Y-3.39%
Revenue Next 3Y-4.46%
Revenue Next 5Y-4.53%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
A2A.MI Yearly Revenue VS EstimatesA2A.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
A2A.MI Yearly EPS VS EstimatesA2A.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.05 0.1 0.15 0.2 0.25

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 3.60, which indicates a rather cheap valuation of A2A.
Compared to the rest of the industry, the Price/Earnings ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 100.00% of the companies listed in the same industry.
A2A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
A2A is valuated reasonably with a Price/Forward Earnings ratio of 9.73.
Based on the Price/Forward Earnings ratio, A2A is valued cheaper than 84.62% of the companies in the same industry.
A2A is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.6
Fwd PE 9.73
A2A.MI Price Earnings VS Forward Price EarningsA2A.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of A2A indicates a rather cheap valuation: A2A is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.31
A2A.MI Per share dataA2A.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The decent profitability rating of A2A may justify a higher PE ratio.
A2A's earnings are expected to decrease with -7.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.67%, A2A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.37, A2A has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, A2A pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.67%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

DP0%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
A2A.MI Yearly Income VS Free CF VS DividendA2A.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

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A2A SPA

BIT:A2A (4/25/2025, 7:00:00 PM)

2.161

+0.02 (+0.93%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-20 2025-03-20/amc
Earnings (Next)05-13 2025-05-13
Inst Owners15.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.77B
Analysts80
Price Target2.54 (17.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.67%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
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)1.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.14%
EPS NY rev (3m)6.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 3.6
Fwd PE 9.73
P/S 0.27
P/FCF N/A
P/OCF 5.94
P/B 1.24
P/tB 5.91
EV/EBITDA 3.31
EPS(TTM)0.6
EY27.76%
EPS(NY)0.22
Fwd EY10.27%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.36
OCFY16.82%
SpS8.1
BVpS1.74
TBVpS0.37
PEG (NY)N/A
PEG (5Y)0.21
Profitability
Industry RankSector Rank
ROA 9.4%
ROE 34.36%
ROCE 20.76%
ROIC 15.67%
ROICexc 17.71%
ROICexgc 27.39%
OM 11.24%
PM (TTM) 7.37%
GM 29.02%
FCFM N/A
ROA(3y)3.24%
ROA(5y)3.1%
ROE(3y)13.9%
ROE(5y)13.08%
ROIC(3y)6.02%
ROIC(5y)5.54%
ROICexc(3y)6.99%
ROICexc(5y)6.35%
ROICexgc(3y)10.87%
ROICexgc(5y)9.8%
ROCE(3y)7.98%
ROCE(5y)7.34%
ROICexcg growth 3Y13.2%
ROICexcg growth 5Y4.94%
ROICexc growth 3Y13.1%
ROICexc growth 5Y3.62%
OM growth 3Y21.17%
OM growth 5Y1.6%
PM growth 3Y15.48%
PM growth 5Y4.82%
GM growth 3Y10.04%
GM growth 5Y-0.87%
F-Score6
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF N/A
Debt/EBITDA 1.69
Cap/Depr 171.04%
Cap/Sales 5.96%
Interest Coverage 26.42
Cash Conversion 30.48%
Profit Quality N/A
Current Ratio 1.12
Quick Ratio 1.07
Altman-Z 2.34
F-Score6
WACC4.85%
ROIC/WACC3.23
Cap/Depr(3y)171.37%
Cap/Depr(5y)161.67%
Cap/Sales(3y)8.81%
Cap/Sales(5y)9.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.83%
EPS 3Y18.61%
EPS 5Y17.19%
EPS Q2Q%126.81%
EPS Next Y-19.73%
EPS Next 2Y-10.57%
EPS Next 3Y-7.39%
EPS Next 5Y-7.23%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y3.64%
Revenue growth 5Y11.91%
Sales Q2Q%89.94%
Revenue Next Year-6.94%
Revenue Next 2Y-3.39%
Revenue Next 3Y-4.46%
Revenue Next 5Y-4.53%
EBIT growth 1Y84.78%
EBIT growth 3Y25.58%
EBIT growth 5Y13.7%
EBIT Next Year66.67%
EBIT Next 3Y20.81%
EBIT Next 5Y11.63%
FCF growth 1Y-11.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.52%
OCF growth 3Y0.12%
OCF growth 5Y10.23%