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 5 industry peers in the Gas Utilities industry. IG has an excellent profitability rating, but there are concerns on its financial health. IG has a correct valuation and a medium growth rate. Finally IG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IG had positive earnings in the past year.
Each year in the past 5 years IG has been profitable.
In the past 5 years IG always reported a positive cash flow from operatings.
1.2 Ratios
IG's Return On Assets of 5.40% is amongst the best of the industry. IG outperforms 100.00% of its industry peers.
IG has a Return On Equity of 29.22%. This is amongst the best in the industry. IG outperforms 100.00% of its industry peers.
IG has a better Return On Invested Capital (8.35%) than 100.00% 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 6.67%.
The 3 year average ROIC (5.76%) for IG is below the current ROIC(8.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 29.22% | ||
| ROIC | 8.35% |
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
Looking at the Profit Margin, with a value of 21.78%, IG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
IG's Profit Margin has declined in the last couple of years.
IG has a Operating Margin of 37.31%. This is in the better half of the industry: IG outperforms 80.00% of its industry peers.
IG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 65.60%, IG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
IG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.31% | ||
| PM (TTM) | 21.78% | ||
| GM | 65.6% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IG is still creating some value.
The number of shares outstanding for IG remains at a similar level compared to 1 year ago.
IG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that IG is in the distress zone and has some risk of bankruptcy.
IG has a Altman-Z score of 1.13. This is in the lower half of the industry: IG underperforms 60.00% of its industry peers.
IG has a Debt/Equity ratio of 3.23. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.23, 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 | 3.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC1.76
WACC4.73%
2.3 Liquidity
A Current Ratio of 1.18 indicates that IG should not have too much problems paying its short term obligations.
IG's Current ratio of 1.18 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 Quick Ratio of 1.16. This is a normal value and indicates that IG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.16, IG is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.12% over the past year.
IG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.74% yearly.
The Revenue has been growing slightly by 5.79% in the past year.
IG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.37% yearly.
EPS 1Y (TTM)16.12%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%43.28%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%49.26%
3.2 Future
Based on estimates for the next years, IG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.83% on average per year.
IG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.23% yearly.
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y8.83%
Revenue Next Year26.86%
Revenue Next 2Y19.19%
Revenue Next 3Y15.84%
Revenue Next 5Y12.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 7.25, the valuation of IG can be described as very cheap.
Based on the Price/Earnings ratio, IG is valued cheaper than 100.00% of the companies in the same industry.
IG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
Based on the Price/Forward Earnings ratio of 10.30, the valuation of IG can be described as reasonable.
Based on the Price/Forward Earnings ratio, IG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, IG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)2.65
EPS Next 2Y4.58%
EPS Next 3Y6%
5. Dividend
5.1 Amount
IG has a Yearly Dividend Yield of 5.91%, which is a nice return.
IG's Dividend Yield is a higher than the industry average which is at 5.59.
Compared to an average S&P500 Dividend Yield of 2.35, IG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of IG is nicely growing with an annual growth rate of 7.56%!
Dividend Growth(5Y)7.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.05% of the earnings are spent on dividend by IG. This is a low number and sustainable payout ratio.
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.
DP39.05%
EPS Next 2Y4.58%
EPS Next 3Y6%
BIT:IG (7/15/2025, 5:35:30 PM)
6.885
-0.09 (-1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.66%
Inst Owner ChangeN/A
Ins Owners3.38%
Ins Owner ChangeN/A
Market Cap6.99B
Analysts77
Price Target6.96 (1.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend0.37
Dividend Growth(5Y)7.56%
DP39.05%
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)-3.88%
PT rev (3m)9.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.3 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.67 |
EPS(TTM)0.95
EY13.8%
EPS(NY)0.67
Fwd EY9.71%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.47
BVpS2.59
TBVpS-6.14
PEG (NY)1.21
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 29.22% | ||
| ROCE | 12.03% | ||
| ROIC | 8.35% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 129.66% | ||
| OM | 37.31% | ||
| PM (TTM) | 21.78% | ||
| GM | 65.6% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.13 |
F-ScoreN/A
WACC4.73%
ROIC/WACC1.76
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)16.12%
EPS 3Y9.62%
EPS 5Y2.74%
EPS Q2Q%43.28%
EPS Next Y5.98%
EPS Next 2Y4.58%
EPS Next 3Y6%
EPS Next 5Y8.83%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y5.71%
Revenue growth 5Y6.37%
Sales Q2Q%49.26%
Revenue Next Year26.86%
Revenue Next 2Y19.19%
Revenue Next 3Y15.84%
Revenue Next 5Y12.23%
EBIT growth 1Y17.72%
EBIT growth 3Y11.89%
EBIT growth 5Y9.35%
EBIT Next Year112.73%
EBIT Next 3Y37.6%
EBIT Next 5Y25.24%
FCF growth 1Y171.24%
FCF growth 3Y117.41%
FCF growth 5Y51.61%
OCF growth 1Y91.86%
OCF growth 3Y9.38%
OCF growth 5Y8.67%