ACEA SPA (ACE.MI) Stock Fundamental Analysis
BIT:ACE - Borsa Italiana Milan - IT0001207098 - Common Stock - Currency: EUR
ACE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Multi-Utilities industry. While ACE has a great profitability rating, there are quite some concerns on its financial health. ACE is not valued too expensively and it also shows a decent growth rate. ACE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACE had positive earnings in the past year.
ACE had a positive operating cash flow in the past year.
ACE had positive earnings in each of the past 5 years.
Each year in the past 5 years ACE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ACE (3.86%) is better than 85.71% of its industry peers.
With an excellent Return On Equity value of 20.05%, ACE belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
ACE's Return On Invested Capital of 6.69% is fine compared to the rest of the industry. ACE outperforms 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACE is in line with the industry average of 6.12%.
The last Return On Invested Capital (6.69%) for ACE is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 20.05% | ||
| ROIC | 6.69% |
ROA(3y)2.64%
ROA(5y)2.8%
ROE(3y)13.11%
ROE(5y)13.82%
ROIC(3y)4.13%
ROIC(5y)4.1%
1.3 Margins
ACE's Profit Margin of 7.37% is fine compared to the rest of the industry. ACE outperforms 78.57% of its industry peers.
ACE's Profit Margin has declined in the last couple of years.
ACE has a better Operating Margin (14.07%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of ACE has remained more or less at the same level.
ACE's Gross Margin of 52.86% is fine compared to the rest of the industry. ACE outperforms 71.43% of its industry peers.
ACE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.07% | ||
| PM (TTM) | 7.37% | ||
| GM | 52.86% |
OM growth 3Y-3.17%
OM growth 5Y-0.37%
PM growth 3Y-9.48%
PM growth 5Y-7.07%
GM growth 3Y-0.92%
GM growth 5Y1.74%
2. Health
2.1 Basic Checks
ACE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ACE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACE has about the same amount of shares outstanding.
The debt/assets ratio for ACE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that ACE is in the distress zone and has some risk of bankruptcy.
ACE's Altman-Z score of 1.08 is fine compared to the rest of the industry. ACE outperforms 71.43% of its industry peers.
ACE has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
ACE has a worse Debt to Equity ratio (2.17) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC1.5
WACC4.45%
2.3 Liquidity
A Current Ratio of 0.79 indicates that ACE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, ACE is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that ACE may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, ACE is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
ACE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.04%, which is quite impressive.
ACE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
The Revenue for ACE has decreased by -12.97% in the past year. This is quite bad
Measured over the past years, ACE shows a quite strong growth in Revenue. The Revenue has been growing by 9.37% on average per year.
EPS 1Y (TTM)37.04%
EPS 3Y1.04%
EPS 5Y1.68%
EPS Q2Q%69.15%
Revenue 1Y (TTM)-12.97%
Revenue growth 3Y11.62%
Revenue growth 5Y9.37%
Sales Q2Q%1.09%
3.2 Future
ACE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.21% yearly.
ACE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.61% yearly.
EPS Next Y12.21%
EPS Next 2Y9.9%
EPS Next 3Y4.99%
EPS Next 5Y4.21%
Revenue Next Year-1.19%
Revenue Next 2Y-1.35%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 7.52, which indicates a rather cheap valuation of ACE.
Based on the Price/Earnings ratio, ACE is valued cheaper than 85.71% of the companies in the same industry.
ACE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 11.01 indicates a reasonable valuation of ACE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACE is on the same level as its industry peers.
ACE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACE is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.3 |
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.
The decent profitability rating of ACE may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)4.49
EPS Next 2Y9.9%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, ACE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, ACE has a dividend in line with its industry peers.
ACE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of ACE has a limited annual growth rate of 1.12%.
Dividend Growth(5Y)1.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ACE pays out 32.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of ACE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.41%
EPS Next 2Y9.9%
EPS Next 3Y4.99%
ACEA SPA
BIT:ACE (2/5/2025, 12:39:07 PM)
18.35
+0.07 (+0.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners7.22%
Inst Owner ChangeN/A
Ins Owners5.45%
Ins Owner ChangeN/A
Market Cap3.91B
Analysts82.22
Price Target20.5 (11.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend0.68
Dividend Growth(5Y)1.12%
DP32.41%
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)5.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.27%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.01 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | 3.45 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.3 |
EPS(TTM)2.44
EY13.3%
EPS(NY)1.67
Fwd EY9.08%
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)5.31
OCFY28.96%
SpS30.12
BVpS11.07
TBVpS-10.56
PEG (NY)0.62
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 20.05% | ||
| ROCE | 10.33% | ||
| ROIC | 6.69% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 18.07% | ||
| OM | 14.07% | ||
| PM (TTM) | 7.37% | ||
| GM | 52.86% | ||
| FCFM | N/A |
ROA(3y)2.64%
ROA(5y)2.8%
ROE(3y)13.11%
ROE(5y)13.82%
ROIC(3y)4.13%
ROIC(5y)4.1%
ROICexc(3y)4.65%
ROICexc(5y)4.72%
ROICexgc(3y)10.42%
ROICexgc(5y)10.46%
ROCE(3y)6.37%
ROCE(5y)6.34%
ROICexcg growth 3Y4.91%
ROICexcg growth 5Y4.09%
ROICexc growth 3Y1.31%
ROICexc growth 5Y-0.03%
OM growth 3Y-3.17%
OM growth 5Y-0.37%
PM growth 3Y-9.48%
PM growth 5Y-7.07%
GM growth 3Y-0.92%
GM growth 5Y1.74%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 230.76% | ||
| Cap/Sales | 23.99% | ||
| Interest Coverage | 5.41 | ||
| Cash Conversion | 72.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.08 |
F-Score6
WACC4.45%
ROIC/WACC1.5
Cap/Depr(3y)155.52%
Cap/Depr(5y)137.33%
Cap/Sales(3y)20.51%
Cap/Sales(5y)18.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.04%
EPS 3Y1.04%
EPS 5Y1.68%
EPS Q2Q%69.15%
EPS Next Y12.21%
EPS Next 2Y9.9%
EPS Next 3Y4.99%
EPS Next 5Y4.21%
Revenue 1Y (TTM)-12.97%
Revenue growth 3Y11.62%
Revenue growth 5Y9.37%
Sales Q2Q%1.09%
Revenue Next Year-1.19%
Revenue Next 2Y-1.35%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.61%
EBIT growth 1Y29.35%
EBIT growth 3Y8.08%
EBIT growth 5Y8.97%
EBIT Next Year151.15%
EBIT Next 3Y39.13%
EBIT Next 5Y23.85%
FCF growth 1Y-224.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.23%
OCF growth 3Y8.9%
OCF growth 5Y8.92%