ALERION CLEANPOWER (ARN.MI) Stock Fundamental Analysis
BIT:ARN - Euronext Milan - IT0004720733 - Common Stock - Currency: EUR
Overall ARN gets a fundamental rating of 7 out of 10. We evaluated ARN against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. While ARN has a great profitability rating, there are some minor concerns on its financial health. ARN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! ARN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARN had positive earnings in the past year.
In the past year ARN had a positive cash flow from operations.
ARN had positive earnings in each of the past 5 years.
Each year in the past 5 years ARN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, ARN belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Equity value of 26.12%, ARN belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of ARN (8.49%) is better than 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARN is above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 26.12% | ||
| ROIC | 8.49% |
ROA(3y)5.37%
ROA(5y)4.85%
ROE(3y)23.57%
ROE(5y)21.49%
ROIC(3y)9.83%
ROIC(5y)8.05%
1.3 Margins
The Profit Margin of ARN (42.86%) is better than 90.48% of its industry peers.
ARN's Profit Margin has improved in the last couple of years.
ARN has a better Operating Margin (59.54%) than 90.48% of its industry peers.
ARN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 94.20%, ARN belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Gross Margin of ARN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.54% | ||
| PM (TTM) | 42.86% | ||
| GM | 94.2% |
OM growth 3Y4.83%
OM growth 5Y9.01%
PM growth 3Y9.32%
PM growth 5Y7.35%
GM growth 3Y-1.32%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARN is creating value.
The number of shares outstanding for ARN has been reduced compared to 1 year ago.
The number of shares outstanding for ARN has been increased compared to 5 years ago.
Compared to 1 year ago, ARN has a worse debt to assets ratio.
2.2 Solvency
ARN has an Altman-Z score of 1.16. This is a bad value and indicates that ARN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ARN (1.16) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that ARN has dependencies on debt financing.
The Debt to Equity ratio of ARN (2.38) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC1.65
WACC5.14%
2.3 Liquidity
A Current Ratio of 1.89 indicates that ARN should not have too much problems paying its short term obligations.
ARN's Current ratio of 1.89 is amongst the best of the industry. ARN outperforms 85.71% of its industry peers.
A Quick Ratio of 1.84 indicates that ARN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.84, ARN belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.21% over the past year.
ARN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.73% yearly.
The Revenue has grown by 36.33% in the past year. This is a very strong growth!
The Revenue has been growing by 26.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)44.21%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%370.08%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%83.03%
3.2 Future
ARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.95% yearly.
Based on estimates for the next years, ARN will show a quite strong growth in Revenue. The Revenue will grow by 16.39% on average per year.
EPS Next Y-44.44%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
EPS Next 5Y13.95%
Revenue Next Year-14.8%
Revenue Next 2Y-1.06%
Revenue Next 3Y8.55%
Revenue Next 5Y16.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.78, the valuation of ARN can be described as reasonable.
Based on the Price/Earnings ratio, ARN is valued cheaper than 85.71% of the companies in the same industry.
ARN is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.18 indicates a correct valuation of ARN.
ARN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARN is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARN to the average of the S&P500 Index (21.38), we can say ARN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARN is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
The excellent profitability rating of ARN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.04%, ARN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, ARN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, ARN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
The dividend of ARN is nicely growing with an annual growth rate of 78.76%!
Dividend Growth(5Y)78.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARN pays out 34.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of ARN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.74%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
BIT:ARN (4/29/2025, 3:52:44 PM)
15.72
+0.72 (+4.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners1.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap852.50M
Analysts84
Price Target23.46 (49.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
Yearly Dividend0.62
Dividend Growth(5Y)78.76%
DP34.74%
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)-11.54%
PT rev (3m)-11.54%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)127.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.5%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 15.18 | ||
| P/S | 3.81 | ||
| P/FCF | N/A | ||
| P/OCF | 14.45 | ||
| P/B | 2.32 | ||
| P/tB | 8.47 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)1.79
EY11.39%
EPS(NY)1.04
Fwd EY6.59%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.09
OCFY6.92%
SpS4.12
BVpS6.76
TBVpS1.86
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 26.12% | ||
| ROCE | 10.04% | ||
| ROIC | 8.49% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 13.87% | ||
| OM | 59.54% | ||
| PM (TTM) | 42.86% | ||
| GM | 94.2% | ||
| FCFM | N/A |
ROA(3y)5.37%
ROA(5y)4.85%
ROE(3y)23.57%
ROE(5y)21.49%
ROIC(3y)9.83%
ROIC(5y)8.05%
ROICexc(3y)15.03%
ROICexc(5y)11.56%
ROICexgc(3y)21.72%
ROICexgc(5y)16.52%
ROCE(3y)11.63%
ROCE(5y)9.53%
ROICexcg growth 3Y28.39%
ROICexcg growth 5Y34%
ROICexc growth 3Y22.23%
ROICexc growth 5Y30.27%
OM growth 3Y4.83%
OM growth 5Y9.01%
PM growth 3Y9.32%
PM growth 5Y7.35%
GM growth 3Y-1.32%
GM growth 5Y-0.55%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 159.37% | ||
| Cap/Sales | 37.73% | ||
| Interest Coverage | 4.74 | ||
| Cash Conversion | 31.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 1.16 |
F-Score7
WACC5.14%
ROIC/WACC1.65
Cap/Depr(3y)142.88%
Cap/Depr(5y)116.61%
Cap/Sales(3y)34.77%
Cap/Sales(5y)29.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.21%
EPS 3Y25.61%
EPS 5Y33.73%
EPS Q2Q%370.08%
EPS Next Y-44.44%
EPS Next 2Y-14.78%
EPS Next 3Y1.86%
EPS Next 5Y13.95%
Revenue 1Y (TTM)36.33%
Revenue growth 3Y14.58%
Revenue growth 5Y26.12%
Sales Q2Q%83.03%
Revenue Next Year-14.8%
Revenue Next 2Y-1.06%
Revenue Next 3Y8.55%
Revenue Next 5Y16.39%
EBIT growth 1Y36.08%
EBIT growth 3Y20.12%
EBIT growth 5Y37.49%
EBIT Next Year8.12%
EBIT Next 3Y21.16%
EBIT Next 5Y7.61%
FCF growth 1Y-186.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.57%
OCF growth 3Y-20.38%
OCF growth 5Y-1.87%