IREN SPA (IRE.MI) Stock Fundamental Analysis
BIT:IRE - Borsa Italiana Milan - IT0003027817 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to IRE. IRE was compared to 14 industry peers in the Multi-Utilities industry. While IRE is still in line with the averages on profitability rating, there are concerns on its financial health. IRE has a valuation in line with the averages, but on the other hand it scores bad on growth. IRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
IRE had positive earnings in the past year.
IRE had a positive operating cash flow in the past year.
IRE had positive earnings in each of the past 5 years.
In the past 5 years IRE always reported a positive cash flow from operatings.
1.2 Ratios
IRE has a Return On Assets of 3.44%. This is in the better half of the industry: IRE outperforms 78.57% of its industry peers.
The Return On Equity of IRE (14.70%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.27%, IRE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
IRE had an Average Return On Invested Capital over the past 3 years of 4.32%. This is in line with the industry average of 6.12%.
The last Return On Invested Capital (6.27%) for IRE is above the 3 year average (4.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 14.7% | ||
| ROIC | 6.27% |
ROA(3y)2.36%
ROA(5y)2.46%
ROE(3y)9.7%
ROE(5y)9.89%
ROIC(3y)4.32%
ROIC(5y)4.38%
1.3 Margins
IRE has a Profit Margin (4.72%) which is comparable to the rest of the industry.
IRE's Profit Margin has declined in the last couple of years.
IRE has a Operating Margin of 9.13%. This is comparable to the rest of the industry: IRE outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of IRE has declined.
IRE's Gross Margin of 63.80% is fine compared to the rest of the industry. IRE outperforms 78.57% of its industry peers.
IRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.13% | ||
| PM (TTM) | 4.72% | ||
| GM | 63.8% |
OM growth 3Y-14.46%
OM growth 5Y-10.87%
PM growth 3Y-15.74%
PM growth 5Y-9.06%
GM growth 3Y-7.55%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRE is creating some value.
IRE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for IRE has been reduced compared to 5 years ago.
The debt/assets ratio for IRE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that IRE is in the distress zone and has some risk of bankruptcy.
IRE's Altman-Z score of 1.27 is fine compared to the rest of the industry. IRE outperforms 78.57% of its industry peers.
IRE has a debt to FCF ratio of 18.49. This is a negative value and a sign of low solvency as IRE would need 18.49 years to pay back of all of its debts.
IRE's Debt to FCF ratio of 18.49 is fine compared to the rest of the industry. IRE outperforms 64.29% of its industry peers.
IRE has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
IRE has a worse Debt to Equity ratio (1.78) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 18.49 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.56
WACC4.01%
2.3 Liquidity
IRE has a Current Ratio of 0.94. This is a bad value and indicates that IRE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of IRE (0.94) is comparable to the rest of the industry.
A Quick Ratio of 0.91 indicates that IRE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, IRE is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.29% over the past year.
IRE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.17% yearly.
The Revenue for IRE has decreased by -15.47% in the past year. This is quite bad
IRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.10% yearly.
EPS 1Y (TTM)6.29%
EPS 3Y2.14%
EPS 5Y1.17%
EPS Q2Q%39.64%
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y21.22%
Revenue growth 5Y11.1%
Sales Q2Q%3.87%
3.2 Future
IRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
Based on estimates for the next years, IRE will show a decrease in Revenue. The Revenue will decrease by -5.56% on average per year.
EPS Next Y0.39%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
EPS Next 5YN/A
Revenue Next Year-12.15%
Revenue Next 2Y-5.45%
Revenue Next 3Y-0.32%
Revenue Next 5Y-5.56%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IRE is valuated cheaply with a Price/Earnings ratio of 6.38.
92.86% of the companies in the same industry are more expensive than IRE, based on the Price/Earnings ratio.
IRE is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
IRE is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRE indicates a somewhat cheap valuation: IRE is cheaper than 78.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, IRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than IRE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRE indicates a somewhat cheap valuation: IRE is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 4.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)16.5
PEG (5Y)5.44
EPS Next 2Y3.73%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
IRE has a Yearly Dividend Yield of 5.71%, which is a nice return.
IRE's Dividend Yield is rather good when compared to the industry average which is at 4.91. IRE pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, IRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
5.2 History
On average, the dividend of IRE grows each year by 15.07%, which is quite nice.
Dividend Growth(5Y)15.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.10% of the earnings are spent on dividend by IRE. This is a low number and sustainable payout ratio.
The dividend of IRE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.1%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
IREN SPA
BIT:IRE (2/5/2025, 12:35:00 PM)
2.104
+0.02 (+0.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.2%
Inst Owner ChangeN/A
Ins Owners3.85%
Ins Owner ChangeN/A
Market Cap2.74B
Analysts80
Price Target2.38 (13.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
Yearly Dividend0.14
Dividend Growth(5Y)15.07%
DP9.1%
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)1.75%
PT rev (3m)1.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 9.35 | ||
| P/S | 0.31 | ||
| P/FCF | 9.94 | ||
| P/OCF | 2.42 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.7 |
EPS(TTM)0.33
EY15.68%
EPS(NY)0.22
Fwd EY10.69%
FCF(TTM)0.21
FCFY10.06%
OCF(TTM)0.87
OCFY41.33%
SpS6.73
BVpS2.16
TBVpS-0.52
PEG (NY)16.5
PEG (5Y)5.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 14.7% | ||
| ROCE | 8.88% | ||
| ROIC | 6.27% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 10.93% | ||
| OM | 9.13% | ||
| PM (TTM) | 4.72% | ||
| GM | 63.8% | ||
| FCFM | 3.15% |
ROA(3y)2.36%
ROA(5y)2.46%
ROE(3y)9.7%
ROE(5y)9.89%
ROIC(3y)4.32%
ROIC(5y)4.38%
ROICexc(3y)5%
ROICexc(5y)4.94%
ROICexgc(3y)8.61%
ROICexgc(5y)8.19%
ROCE(3y)5.91%
ROCE(5y)5.96%
ROICexcg growth 3Y-2.21%
ROICexcg growth 5Y-4.7%
ROICexc growth 3Y-3.45%
ROICexc growth 5Y-6.48%
OM growth 3Y-14.46%
OM growth 5Y-10.87%
PM growth 3Y-15.74%
PM growth 5Y-9.06%
GM growth 3Y-7.55%
GM growth 5Y-2.24%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 18.49 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 135.05% | ||
| Cap/Sales | 9.78% | ||
| Interest Coverage | 7.09 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 66.65% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.27 |
F-Score6
WACC4.01%
ROIC/WACC1.56
Cap/Depr(3y)158.15%
Cap/Depr(5y)N/A
Cap/Sales(3y)13.72%
Cap/Sales(5y)14.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.29%
EPS 3Y2.14%
EPS 5Y1.17%
EPS Q2Q%39.64%
EPS Next Y0.39%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y21.22%
Revenue growth 5Y11.1%
Sales Q2Q%3.87%
Revenue Next Year-12.15%
Revenue Next 2Y-5.45%
Revenue Next 3Y-0.32%
Revenue Next 5Y-5.56%
EBIT growth 1Y17.24%
EBIT growth 3Y3.69%
EBIT growth 5Y-0.98%
EBIT Next Year167.08%
EBIT Next 3Y43.87%
EBIT Next 5Y23.8%
FCF growth 1Y1175.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.98%
OCF growth 3Y-6.08%
OCF growth 5Y-2.65%