ITALGAS SPA (IG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IG - IT0005211237 - Common Stock
9.865 EUR
-0.12 (-1.2%)
Taking everything into account, IG scores 5 out of 10 in our fundamental rating. IG was compared to 5 industry peers in the Gas Utilities industry. IG has a medium profitability rating, but doesn't score so well on its financial health evaluation. IG is valued quite expensively, but it does show have an excellent growth rating. Finally IG also has an excellent dividend rating.
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.
- Each year in the past 5 years IG had a positive operating cash flow.
1.2 Ratios
- IG's Return On Assets of 4.88% is on the low side compared to the rest of the industry. IG is outperformed by 75.00% of its industry peers.
- Looking at the Return On Equity, with a value of 25.06%, IG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of IG (7.59%) is better than 75.00% 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 6.44%.
- The 3 year average ROIC (5.76%) for IG is below the current ROIC(7.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 25.06% | ||
| ROIC | 7.59% |
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 has a Profit Margin (22.07%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of IG has declined.
- IG's Operating Margin of 38.76% is fine compared to the rest of the industry. IG outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of IG has grown nicely.
- IG has a Gross Margin of 58.56%. This is in the better half of the industry: IG outperforms 75.00% of its industry peers.
- IG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.76% | ||
| PM (TTM) | 22.07% | ||
| GM | 58.56% |
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) just above the Cost of Capital (WACC), IG is creating some 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
- IG has an Altman-Z score of 0.98. This is a bad value and indicates that IG is not financially healthy and even has some risk of bankruptcy.
- IG has a Altman-Z score of 0.98. This is in the lower half of the industry: IG underperforms 75.00% of its industry peers.
- The Debt to FCF ratio of IG is 33.56, which is on the high side as it means it would take IG, 33.56 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 33.56, IG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- IG has a Debt/Equity ratio of 3.07. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.07, IG is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | 33.56 | ||
| Altman-Z | 0.98 |
ROIC/WACC1.44
WACC5.29%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that IG may have some problems paying its short term obligations.
- With a Current ratio value of 0.81, IG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- IG has a Quick Ratio of 0.81. This is a bad value and indicates that IG is not financially healthy enough and could expect problems in meeting its short term obligations.
- IG's Quick ratio of 0.77 is fine compared to the rest of the industry. IG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 50.00% over the past year.
- Measured over the past 5 years, IG shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
- The Revenue has grown by 27.28% in the past year. This is a very strong growth!
- Measured over the past years, IG shows a small growth in Revenue. The Revenue has been growing by 6.80% on average per year.
EPS 1Y (TTM)50%
EPS 3Y-30.18%
EPS 5Y5.46%
EPS Q2Q%17.13%
Revenue 1Y (TTM)27.28%
Revenue growth 3Y6.24%
Revenue growth 5Y6.8%
Sales Q2Q%54.19%
3.2 Future
- IG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.53% yearly.
- Based on estimates for the next years, IG will show a quite strong growth in Revenue. The Revenue will grow by 15.29% on average per year.
EPS Next Y9.62%
EPS Next 2Y12.84%
EPS Next 3Y15.81%
EPS Next 5Y13.53%
Revenue Next Year23.48%
Revenue Next 2Y10.88%
Revenue Next 3Y19.75%
Revenue Next 5Y15.29%
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 21.92, the valuation of IG can be described as rather expensive.
- 75.00% of the companies in the same industry are cheaper than IG, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of IG to the average of the S&P500 Index (27.21), we can say IG is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 17.19, the valuation of IG can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as IG.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 17.19 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IG.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IG indicates a somewhat cheap valuation: IG is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IG does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of IG may justify a higher PE ratio.
- A more expensive valuation may be justified as IG's earnings are expected to grow with 15.81% in the coming years.
PEG (NY)2.28
PEG (5Y)4.01
EPS Next 2Y12.84%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
- IG has a Yearly Dividend Yield of 4.07%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.68, IG is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, IG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
- The dividend of IG is nicely growing with an annual growth rate of 6.22%!
Dividend Growth(5Y)6.22%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 39.58% of the earnings are spent on dividend by IG. This is a low number and sustainable payout ratio.
- IG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.58%
EPS Next 2Y12.84%
EPS Next 3Y15.81%
ITALGAS SPA / IG.MI FAQ
Can you provide the ChartMill fundamental rating for ITALGAS SPA?
ChartMill assigns a fundamental rating of 5 / 10 to IG.MI.
Can you provide the valuation status for ITALGAS SPA?
ChartMill assigns a valuation rating of 3 / 10 to ITALGAS SPA (IG.MI). This can be considered as Overvalued.
How profitable is ITALGAS SPA (IG.MI) stock?
ITALGAS SPA (IG.MI) has a profitability rating of 6 / 10.
What is the financial health of ITALGAS SPA (IG.MI) stock?
The financial health rating of ITALGAS SPA (IG.MI) is 2 / 10.
Can you provide the expected EPS growth for IG stock?
The Earnings per Share (EPS) of ITALGAS SPA (IG.MI) is expected to grow by 9.62% in the next year.