ITALGAS SPA (IG.MI) Stock Fundamental Analysis
BIT:IG - Euronext Milan - IT0005211237 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to IG. IG was compared to 5 industry peers in the Gas Utilities industry. While IG has a great profitability rating, there are quite some concerns on its financial health. IG has a correct valuation and a medium growth rate.
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.
In the past 5 years IG has always been profitable.
IG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IG has a Return On Assets of 5.99%. This is amongst the best in the industry. IG outperforms 100.00% of its industry peers.
The Return On Equity of IG (29.16%) is better than 100.00% of its industry peers.
The Return On Invested Capital of IG (9.41%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IG is in line with the industry average of 6.99%.
The last Return On Invested Capital (9.41%) for IG is above the 3 year average (5.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.16% | ||
| ROIC | 9.41% |
ROA(3y)3.88%
ROA(5y)3.89%
ROE(3y)19.36%
ROE(5y)19.88%
ROIC(3y)5.76%
ROIC(5y)5.76%
1.3 Margins
IG's Profit Margin of 21.82% is fine compared to the rest of the industry. IG outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of IG has declined.
IG's Operating Margin of 37.25% is fine compared to the rest of the industry. IG outperforms 80.00% of its industry peers.
IG's Operating Margin has improved in the last couple of years.
IG's Gross Margin of 70.39% is fine compared to the rest of the industry. IG outperforms 80.00% of its industry peers.
IG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.25% | ||
| PM (TTM) | 21.82% | ||
| GM | 70.39% |
OM growth 3Y5.85%
OM growth 5Y2.8%
PM growth 3Y3.77%
PM growth 5Y-3.36%
GM growth 3Y0.16%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IG is creating value.
Compared to 1 year ago, IG has about the same amount of shares outstanding.
The number of shares outstanding for IG has been increased compared to 5 years ago.
IG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that IG is in the distress zone and has some risk of bankruptcy.
IG has a Altman-Z score of 1.04. This is in the lower half of the industry: IG underperforms 60.00% of its industry peers.
The Debt to FCF ratio of IG is 34.87, which is on the high side as it means it would take IG, 34.87 years of fcf income to pay off all of its debts.
IG has a Debt to FCF ratio of 34.87. This is in the lower half of the industry: IG underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 2.65 is on the high side and indicates that IG has dependencies on debt financing.
With a Debt to Equity ratio value of 2.65, IG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 34.87 | ||
| Altman-Z | 1.04 |
ROIC/WACC2.11
WACC4.47%
2.3 Liquidity
A Current Ratio of 0.73 indicates that IG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, IG is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that IG may have some problems paying its short term obligations.
The Quick ratio of IG (0.70) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.77% over the past year.
The Earnings Per Share has been growing slightly by 2.74% on average over the past years.
The Revenue has decreased by -0.21% in the past year.
The Revenue has been growing slightly by 6.37% on average over the past years.
EPS 1Y (TTM)10.77%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%7.6%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%195.11%
3.2 Future
IG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.64% yearly.
IG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.61% yearly.
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue Next Year17.04%
Revenue Next 2Y14.49%
Revenue Next 3Y12.4%
Revenue Next 5Y12.61%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.03, which indicates a very decent valuation of IG.
Based on the Price/Earnings ratio, IG is valued cheaper than 100.00% of the companies in the same industry.
IG is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.91, the valuation of IG can be described as reasonable.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.65. IG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IG is valued a bit cheaper than 80.00% of the companies in the same industry.
IG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.83 | ||
| EV/EBITDA | 6.88 |
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 excellent profitability rating of IG may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)2.93
EPS Next 2Y4.58%
EPS Next 3Y6%
5. Dividend
5.1 Amount
IG has a Yearly Dividend Yield of 5.85%, which is a nice return.
IG's Dividend Yield is comparable with the industry average which is at 5.20.
IG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
5.2 History
On average, the dividend of IG grows each year by 7.56%, which is quite nice.
Dividend Growth(5Y)7.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IG pays out 41.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
IG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.84%
EPS Next 2Y4.58%
EPS Next 3Y6%
BIT:IG (4/24/2025, 5:36:15 PM)
7.065
+0.1 (+1.36%)
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 Cap5.74B
Analysts77.14
Price Target6.37 (-9.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend0.37
Dividend Growth(5Y)7.56%
DP41.84%
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)72.26%
Min Revenue beat(2)-7.51%
Max Revenue beat(2)152.03%
Revenue beat(4)1
Avg Revenue beat(4)31.75%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)152.03%
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)0.35%
PT rev (3m)2.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)7.43%
EPS NY rev (3m)6.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.75 | ||
| P/FCF | 27.83 | ||
| P/OCF | 5.22 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.88 |
EPS(TTM)0.88
EY12.46%
EPS(NY)0.65
Fwd EY9.17%
FCF(TTM)0.25
FCFY3.59%
OCF(TTM)1.35
OCFY19.16%
SpS4.05
BVpS3.03
TBVpS-7.85
PEG (NY)1.34
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.16% | ||
| ROCE | 12.53% | ||
| ROIC | 9.41% | ||
| ROICexc | 9.81% | ||
| ROICexgc | 112.17% | ||
| OM | 37.25% | ||
| PM (TTM) | 21.82% | ||
| GM | 70.39% | ||
| FCFM | 6.27% |
ROA(3y)3.88%
ROA(5y)3.89%
ROE(3y)19.36%
ROE(5y)19.88%
ROIC(3y)5.76%
ROIC(5y)5.76%
ROICexc(3y)5.99%
ROICexc(5y)6.22%
ROICexgc(3y)75.97%
ROICexgc(5y)N/A
ROCE(3y)7.65%
ROCE(5y)7.56%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y2.21%
ROICexc growth 5Y1.43%
OM growth 3Y5.85%
OM growth 5Y2.8%
PM growth 3Y3.77%
PM growth 5Y-3.36%
GM growth 3Y0.16%
GM growth 5Y0.23%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 34.87 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 166.37% | ||
| Cap/Sales | 27.18% | ||
| Interest Coverage | 11.39 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 28.75% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.04 |
F-Score6
WACC4.47%
ROIC/WACC2.11
Cap/Depr(3y)164.61%
Cap/Depr(5y)169.68%
Cap/Sales(3y)35.08%
Cap/Sales(5y)36.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.77%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%7.6%
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y6.64%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%195.11%
Revenue Next Year17.04%
Revenue Next 2Y14.49%
Revenue Next 3Y12.4%
Revenue Next 5Y12.61%
EBIT growth 1Y11.54%
EBIT growth 3Y11.89%
EBIT growth 5Y9.35%
EBIT Next Year92.01%
EBIT Next 3Y33.07%
EBIT Next 5Y24.43%
FCF growth 1Y171.24%
FCF growth 3Y117.41%
FCF growth 5Y51.61%
OCF growth 1Y91.86%
OCF growth 3Y9.38%
OCF growth 5Y8.67%