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ITALGAS SPA (IG.MI) Stock Fundamental Analysis

BIT:IG - Borsa Italiana Milan - IT0005211237 - Common Stock - Currency: EUR

5.81  +0.06 (+1.13%)

Fundamental Rating

5

Taking everything into account, IG scores 5 out of 10 in our fundamental rating. IG was compared to 4 industry peers in the Gas Utilities industry. IG scores excellent on profitability, but there are concerns on its financial health. IG has a correct valuation and a medium growth rate. IG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year IG was profitable.
IG had a positive operating cash flow in the past year.
In the past 5 years IG has always been profitable.
In the past 5 years IG always reported a positive cash flow from operatings.
IG.MI Yearly Net Income VS EBIT VS OCF VS FCFIG.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 0 200M -200M 400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 5.91%, IG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
IG's Return On Equity of 30.62% is amongst the best of the industry. IG outperforms 100.00% of its industry peers.
IG's Return On Invested Capital of 8.89% is fine compared to the rest of the industry. IG outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IG is in line with the industry average of 7.24%.
The 3 year average ROIC (5.34%) for IG is below the current ROIC(8.89%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.91%
ROE 30.62%
ROIC 8.89%
ROA(3y)3.74%
ROA(5y)4.1%
ROE(3y)19.26%
ROE(5y)21.33%
ROIC(3y)5.34%
ROIC(5y)5.63%
IG.MI Yearly ROA, ROE, ROICIG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

With a Profit Margin value of 21.07%, IG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
IG's Profit Margin has declined in the last couple of years.
The Operating Margin of IG (35.18%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of IG has remained more or less at the same level.
IG has a better Gross Margin (73.27%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of IG has remained more or less at the same level.
Industry RankSector Rank
OM 35.18%
PM (TTM) 21.07%
GM 73.27%
OM growth 3Y-1.07%
OM growth 5Y0.25%
PM growth 3Y-2.84%
PM growth 5Y-2.85%
GM growth 3Y-0.56%
GM growth 5Y0.06%
IG.MI Yearly Profit, Operating, Gross MarginsIG.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IG is creating value.
The number of shares outstanding for IG remains at a similar level compared to 1 year ago.
IG has about the same amout of shares outstanding than it did 5 years ago.
IG has a worse debt/assets ratio than last year.
IG.MI Yearly Shares OutstandingIG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
IG.MI Yearly Total Debt VS Total AssetsIG.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.90, we must say that IG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IG (0.90) is worse than 75.00% of its industry peers.
IG has a Debt/Equity ratio of 2.94. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IG (2.94) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.94
Debt/FCF N/A
Altman-Z 0.9
ROIC/WACC2.3
WACC3.86%
IG.MI Yearly LT Debt VS Equity VS FCFIG.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 0.57 indicates that IG may have some problems paying its short term obligations.
IG has a worse Current ratio (0.57) than 75.00% of its industry peers.
A Quick Ratio of 0.53 indicates that IG may have some problems paying its short term obligations.
IG has a worse Quick ratio (0.53) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.53
IG.MI Yearly Current Assets VS Current LiabilitesIG.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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6

3. Growth

3.1 Past

IG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
Measured over the past 5 years, IG shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
The Revenue has been growing slightly by 4.15% in the past year.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)50%
EPS 3Y-30.18%
EPS 5Y6.8%
EPS Q2Q%16.67%
Revenue 1Y (TTM)4.15%
Revenue growth 3Y6.24%
Revenue growth 5Y6.8%
Sales Q2Q%-0.23%

3.2 Future

The Earnings Per Share is expected to grow by 8.22% on average over the next years. This is quite good.
IG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.
EPS Next Y9.61%
EPS Next 2Y12.84%
EPS Next 3Y8.67%
EPS Next 5Y8.22%
Revenue Next Year23.48%
Revenue Next 2Y11%
Revenue Next 3Y12.09%
Revenue Next 5Y11.35%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
IG.MI Yearly Revenue VS EstimatesIG.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
IG.MI Yearly EPS VS EstimatesIG.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.02, the valuation of IG can be described as very reasonable.
75.00% of the companies in the same industry are more expensive than IG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IG to the average of the S&P500 Index (28.47), we can say IG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.51, which indicates a very decent valuation of IG.
IG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IG is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. IG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.02
Fwd PE 9.51
IG.MI Price Earnings VS Forward Price EarningsIG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IG is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.38
IG.MI Per share dataIG.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4 -6 -8

4.3 Compensation for Growth

IG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IG may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)1.47
EPS Next 2Y12.84%
EPS Next 3Y8.67%

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7

5. Dividend

5.1 Amount

IG has a Yearly Dividend Yield of 6.10%, which is a nice return.
IG's Dividend Yield is comparable with the industry average which is at 6.37.
IG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 6.1%

5.2 History

The dividend of IG is nicely growing with an annual growth rate of 7.38%!
Dividend Growth(5Y)7.38%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

IG pays out 44.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
IG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP44.44%
EPS Next 2Y12.84%
EPS Next 3Y8.67%
IG.MI Yearly Income VS Free CF VS DividendIG.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M
IG.MI Dividend Payout.IG.MI Dividend Payout, showing the Payout Ratio.IG.MI Dividend Payout.PayoutRetained Earnings

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ITALGAS SPA

BIT:IG (2/5/2025, 5:35:15 PM)

5.81

+0.06 (+1.13%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)10-24 2024-10-24/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners35.22%
Inst Owner ChangeN/A
Ins Owners4.2%
Ins Owner ChangeN/A
Market Cap4.71B
Analysts76.36
Price Target6.21 (6.88%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.1%
Yearly Dividend0.33
Dividend Growth(5Y)7.38%
DP44.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.15%
Min EPS beat(2)-9.39%
Max EPS beat(2)-2.91%
EPS beat(4)1
Avg EPS beat(4)3.03%
Min EPS beat(4)-16.78%
Max EPS beat(4)41.22%
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)0
Avg Revenue beat(2)-8.75%
Min Revenue beat(2)-9.66%
Max Revenue beat(2)-7.85%
Revenue beat(4)2
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)8.22%
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)-0.1%
PT rev (3m)1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.54%
Valuation
Industry RankSector Rank
PE 10.02
Fwd PE 9.51
P/S 1.46
P/FCF N/A
P/OCF 6.08
P/B 2.12
P/tB N/A
EV/EBITDA 6.38
EPS(TTM)0.58
EY9.98%
EPS(NY)0.61
Fwd EY10.52%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.96
OCFY16.46%
SpS3.99
BVpS2.74
TBVpS-8.23
PEG (NY)1.04
PEG (5Y)1.47
Profitability
Industry RankSector Rank
ROA 5.91%
ROE 30.62%
ROCE 12.56%
ROIC 8.89%
ROICexc 9.2%
ROICexgc 143.22%
OM 35.18%
PM (TTM) 21.07%
GM 73.27%
FCFM N/A
ROA(3y)3.74%
ROA(5y)4.1%
ROE(3y)19.26%
ROE(5y)21.33%
ROIC(3y)5.34%
ROIC(5y)5.63%
ROICexc(3y)5.8%
ROICexc(5y)6.07%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.07%
ROCE(5y)7.4%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.72%
ROICexc growth 3Y-4.04%
ROICexc growth 5Y-0.21%
OM growth 3Y-1.07%
OM growth 5Y0.25%
PM growth 3Y-2.84%
PM growth 5Y-2.85%
GM growth 3Y-0.56%
GM growth 5Y0.06%
F-Score6
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 2.94
Debt/FCF N/A
Debt/EBITDA 3.89
Cap/Depr 159.9%
Cap/Sales 26.89%
Interest Coverage 11.22
Cash Conversion 46.11%
Profit Quality N/A
Current Ratio 0.57
Quick Ratio 0.53
Altman-Z 0.9
F-Score6
WACC3.86%
ROIC/WACC2.3
Cap/Depr(3y)170.63%
Cap/Depr(5y)170.86%
Cap/Sales(3y)36.09%
Cap/Sales(5y)36.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y-30.18%
EPS 5Y6.8%
EPS Q2Q%16.67%
EPS Next Y9.61%
EPS Next 2Y12.84%
EPS Next 3Y8.67%
EPS Next 5Y8.22%
Revenue 1Y (TTM)4.15%
Revenue growth 3Y6.24%
Revenue growth 5Y6.8%
Sales Q2Q%-0.23%
Revenue Next Year23.48%
Revenue Next 2Y11%
Revenue Next 3Y12.09%
Revenue Next 5Y11.35%
EBIT growth 1Y10.56%
EBIT growth 3Y6.46%
EBIT growth 5Y10.4%
EBIT Next Year94.11%
EBIT Next 3Y34.93%
EBIT Next 5Y26.16%
FCF growth 1Y-450.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.22%
OCF growth 3Y-9.07%
OCF growth 5Y-5.22%