ITALGAS SPA (IG.MI) Stock Fundamental Analysis
BIT:IG - Euronext Milan - IT0005211237 - Common Stock - Currency: EUR
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 has an excellent profitability rating, but there are concerns on its financial health. IG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
IG had positive earnings in the past year.
In the past year IG had a positive cash flow from operations.
Each year in the past 5 years IG has been profitable.
IG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IG (6.21%) is better than 100.00% of its industry peers.
IG has a better Return On Equity (32.19%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.34%, IG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 32.19% | ||
| ROIC | 9.34% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IG has a better Profit Margin (26.09%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of IG has grown nicely.
The Operating Margin of IG (43.16%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of IG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.16% | ||
| PM (TTM) | 26.09% | ||
| GM | N/A |
OM growth 3Y20.65%
OM growth 5Y11.2%
PM growth 3Y20.5%
PM growth 5Y5.7%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
IG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
IG has an Altman-Z score of 0.89. This is a bad value and indicates that IG is not financially healthy and even has some risk of bankruptcy.
IG's Altman-Z score of 0.89 is on the low side compared to the rest of the industry. IG is outperformed by 60.00% of its industry peers.
IG has a debt to FCF ratio of 6.55. This is a slightly negative value and a sign of low solvency as IG would need 6.55 years to pay back of all of its debts.
IG's Debt to FCF ratio of 6.55 is fine compared to the rest of the industry. IG outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 2.94 is on the high side and indicates that IG has dependencies on debt financing.
IG has a Debt to Equity ratio of 2.94. This is amonst the worse of the industry: IG underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.94 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 0.89 |
ROIC/WACC1.44
WACC6.49%
2.3 Liquidity
A Current Ratio of 0.57 indicates that IG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, IG is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that IG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, IG is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
IG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.94%, which is quite good.
The Earnings Per Share has been growing slightly by 2.75% on average over the past years.
Looking at the last year, IG shows a very negative growth in Revenue. The Revenue has decreased by -16.53% in the last year.
IG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)10.94%
EPS 3Y9.65%
EPS 5Y2.75%
EPS Q2Q%8.1%
Revenue 1Y (TTM)-16.53%
Revenue growth 3Y-8.97%
Revenue growth 5Y-2.75%
Sales Q2Q%75.09%
3.2 Future
IG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.49% yearly.
Based on estimates for the next years, IG will show a quite strong growth in Revenue. The Revenue will grow by 11.10% on average per year.
EPS Next Y-1.35%
EPS Next 2Y2.22%
EPS Next 3Y3.87%
EPS Next 5Y6.49%
Revenue Next Year17.04%
Revenue Next 2Y14.49%
Revenue Next 3Y12.4%
Revenue Next 5Y11.1%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.76, the valuation of IG can be described as very cheap.
100.00% of the companies in the same industry are more expensive than IG, based on the Price/Earnings ratio.
IG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
IG is valuated reasonably with a Price/Forward Earnings ratio of 9.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IG indicates a somewhat cheap valuation: IG is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, IG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.76 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IG is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.45 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
The decent profitability rating of IG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.46
EPS Next 2Y2.22%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.79%, IG is a good candidate for dividend investing.
IG's Dividend Yield is a higher than the industry average which is at 6.49.
Compared to an average S&P500 Dividend Yield of 2.33, IG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
5.2 History
On average, the dividend of IG grows each year by 7.38%, which is quite nice.
Dividend Growth(5Y)7.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y2.22%
EPS Next 3Y3.87%
BIT:IG (3/5/2025, 5:21:46 PM)
6.018
+0.04 (+0.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners38.47%
Inst Owner ChangeN/A
Ins Owners4.2%
Ins Owner ChangeN/A
Market Cap4.89B
Analysts77.14
Price Target6.35 (5.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
Yearly Dividend0.33
Dividend Growth(5Y)7.38%
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)1
Avg Revenue beat(2)21.01%
Min Revenue beat(2)-7.51%
Max Revenue beat(2)49.53%
Revenue beat(4)1
Avg Revenue beat(4)6.13%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)49.53%
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)2.23%
PT rev (3m)2.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.76 | ||
| Fwd PE | 9.98 | ||
| P/S | 1.78 | ||
| P/FCF | 4.45 | ||
| P/OCF | 4.45 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.46 |
EPS(TTM)0.89
EY14.79%
EPS(NY)0.6
Fwd EY10.02%
FCF(TTM)1.35
FCFY22.49%
OCF(TTM)1.35
OCFY22.49%
SpS3.38
BVpS2.74
TBVpS-8.22
PEG (NY)N/A
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 32.19% | ||
| ROCE | 13.08% | ||
| ROIC | 9.34% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 150.49% | ||
| OM | 43.16% | ||
| PM (TTM) | 26.09% | ||
| GM | N/A | ||
| FCFM | 39.99% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y20.65%
OM growth 5Y11.2%
PM growth 3Y20.5%
PM growth 5Y5.7%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.94 | ||
| Debt/FCF | 6.55 | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.49% | ||
| Profit Quality | 153.31% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.89 |
F-Score6
WACC6.49%
ROIC/WACC1.44
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.94%
EPS 3Y9.65%
EPS 5Y2.75%
EPS Q2Q%8.1%
EPS Next Y-1.35%
EPS Next 2Y2.22%
EPS Next 3Y3.87%
EPS Next 5Y6.49%
Revenue 1Y (TTM)-16.53%
Revenue growth 3Y-8.97%
Revenue growth 5Y-2.75%
Sales Q2Q%75.09%
Revenue Next Year17.04%
Revenue Next 2Y14.49%
Revenue Next 3Y12.4%
Revenue Next 5Y11.1%
EBIT growth 1Y8.1%
EBIT growth 3Y9.83%
EBIT growth 5Y8.14%
EBIT Next Year89.69%
EBIT Next 3Y33.37%
EBIT Next 5Y23.73%
FCF growth 1Y479.87%
FCF growth 3Y279.82%
FCF growth 5Y111.88%
OCF growth 1Y91.86%
OCF growth 3Y9.38%
OCF growth 5Y8.67%