ACEA SPA (ACE.MI) Stock Fundamental Analysis
BIT:ACE - Euronext Milan - IT0001207098 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ACE. ACE was compared to 13 industry peers in the Multi-Utilities industry. While ACE belongs to the best of the industry regarding profitability, there are concerns on its financial health. ACE has a valuation in line with the averages, but on the other hand it scores bad on growth. ACE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACE had positive earnings in the past year.
In the past year ACE had a positive cash flow from operations.
In the past 5 years ACE has always been profitable.
Each year in the past 5 years ACE had a positive operating cash flow.
1.2 Ratios
ACE has a better Return On Assets (4.31%) than 84.62% of its industry peers.
With an excellent Return On Equity value of 21.06%, ACE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.57%, ACE is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACE is below the industry average of 6.93%.
The last Return On Invested Capital (7.57%) for ACE is above the 3 year average (4.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 21.06% | ||
| ROIC | 7.57% |
ROA(3y)2.56%
ROA(5y)2.71%
ROE(3y)12.6%
ROE(5y)13.41%
ROIC(3y)4.42%
ROIC(5y)4.33%
1.3 Margins
ACE has a Profit Margin of 8.35%. This is amongst the best in the industry. ACE outperforms 84.62% of its industry peers.
ACE's Profit Margin has declined in the last couple of years.
ACE's Operating Margin of 15.83% is amongst the best of the industry. ACE outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of ACE has grown nicely.
With a decent Gross Margin value of 54.96%, ACE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
ACE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.83% | ||
| PM (TTM) | 8.35% | ||
| GM | 54.96% |
OM growth 3Y4.06%
OM growth 5Y2.45%
PM growth 3Y-0.18%
PM growth 5Y-2.75%
GM growth 3Y4.23%
GM growth 5Y2.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACE is still creating some value.
Compared to 1 year ago, ACE has about the same amount of shares outstanding.
ACE has about the same amout of shares outstanding than it did 5 years ago.
ACE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that ACE is in the distress zone and has some risk of bankruptcy.
ACE has a Altman-Z score of 1.10. This is in the better half of the industry: ACE outperforms 61.54% of its industry peers.
ACE has a debt to FCF ratio of 17.26. This is a negative value and a sign of low solvency as ACE would need 17.26 years to pay back of all of its debts.
The Debt to FCF ratio of ACE (17.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.00 is on the high side and indicates that ACE has dependencies on debt financing.
ACE has a worse Debt to Equity ratio (2.00) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 17.26 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.56
WACC4.87%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ACE may have some problems paying its short term obligations.
ACE has a Current ratio of 0.69. This is amonst the worse of the industry: ACE underperforms 84.62% of its industry peers.
ACE has a Quick Ratio of 0.69. This is a bad value and indicates that ACE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, ACE is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.68% over the past year.
The Earnings Per Share has been growing slightly by 3.17% on average over the past years.
ACE shows a decrease in Revenue. In the last year, the revenue decreased by -8.88%.
Measured over the past years, ACE shows a small growth in Revenue. The Revenue has been growing by 6.09% on average per year.
EPS 1Y (TTM)21.68%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%5.59%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-4.86%
3.2 Future
ACE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.39% yearly.
The Revenue is expected to decrease by -2.30% on average over the next years.
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y0.39%
Revenue Next Year-1.72%
Revenue Next 2Y-0.02%
Revenue Next 3Y-1.37%
Revenue Next 5Y-2.3%
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 decreasing.
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 7.97, the valuation of ACE can be described as very cheap.
84.62% of the companies in the same industry are more expensive than ACE, based on the Price/Earnings ratio.
ACE is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.96, the valuation of ACE can be described as very reasonable.
ACE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, ACE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACE is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ACE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.85 | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
ACE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.48
PEG (5Y)2.51
EPS Next 2Y1.93%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, ACE is a good candidate for dividend investing.
ACE's Dividend Yield is comparable with the industry average which is at 5.37.
ACE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of ACE is nicely growing with an annual growth rate of 15.14%!
Dividend Growth(5Y)15.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.32% of the earnings are spent on dividend by ACE. This is a low number and sustainable payout ratio.
The dividend of ACE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.32%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
BIT:ACE (4/25/2025, 7:00:00 PM)
19.77
+0.1 (+0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners7.26%
Inst Owner ChangeN/A
Ins Owners7.74%
Ins Owner ChangeN/A
Market Cap4.21B
Analysts82.22
Price Target20.71 (4.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend0.7
Dividend Growth(5Y)15.14%
DP28.32%
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)1%
PT rev (3m)1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.21%
EPS NY rev (3m)18.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.67 | ||
| P/FCF | 12.85 | ||
| P/OCF | 2.38 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)2.48
EY12.54%
EPS(NY)1.8
Fwd EY9.12%
FCF(TTM)1.54
FCFY7.78%
OCF(TTM)8.29
OCFY41.96%
SpS29.65
BVpS11.76
TBVpS-10.11
PEG (NY)0.48
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 21.06% | ||
| ROCE | 11.27% | ||
| ROIC | 7.57% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 16.44% | ||
| OM | 15.83% | ||
| PM (TTM) | 8.35% | ||
| GM | 54.96% | ||
| FCFM | 5.19% |
ROA(3y)2.56%
ROA(5y)2.71%
ROE(3y)12.6%
ROE(5y)13.41%
ROIC(3y)4.42%
ROIC(5y)4.33%
ROICexc(3y)4.88%
ROICexc(5y)4.87%
ROICexgc(3y)11.23%
ROICexgc(5y)10.84%
ROCE(3y)6.58%
ROCE(5y)6.46%
ROICexcg growth 3Y3.65%
ROICexcg growth 5Y-0.24%
ROICexc growth 3Y0.82%
ROICexc growth 5Y-0.78%
OM growth 3Y4.06%
OM growth 5Y2.45%
PM growth 3Y-0.18%
PM growth 5Y-2.75%
GM growth 3Y4.23%
GM growth 5Y2.24%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 17.26 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 202.96% | ||
| Cap/Sales | 22.79% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 103.4% | ||
| Profit Quality | 62.1% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.1 |
F-Score6
WACC4.87%
ROIC/WACC1.56
Cap/Depr(3y)184.97%
Cap/Depr(5y)156.88%
Cap/Sales(3y)26.71%
Cap/Sales(5y)22.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.68%
EPS 3Y1.91%
EPS 5Y3.17%
EPS Q2Q%5.59%
EPS Next Y16.78%
EPS Next 2Y1.93%
EPS Next 3Y3.76%
EPS Next 5Y0.39%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y2.09%
Revenue growth 5Y6.09%
Sales Q2Q%-4.86%
Revenue Next Year-1.72%
Revenue Next 2Y-0.02%
Revenue Next 3Y-1.37%
Revenue Next 5Y-2.3%
EBIT growth 1Y20.34%
EBIT growth 3Y6.24%
EBIT growth 5Y8.69%
EBIT Next Year115.21%
EBIT Next 3Y33.45%
EBIT Next 5Y23.92%
FCF growth 1Y1130.95%
FCF growth 3Y29.26%
FCF growth 5Y-3.89%
OCF growth 1Y59%
OCF growth 3Y31.42%
OCF growth 5Y16.3%