IREN SPA (IRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRE - IT0003027817 - Common Stock
2.668 EUR
+0.02 (+0.68%)
Taking everything into account, IRE scores 5 out of 10 in our fundamental rating. IRE was compared to 18 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally IRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year IRE was profitable.
- In the past year IRE had a positive cash flow from operations.
- Each year in the past 5 years IRE has been profitable.
- Each year in the past 5 years IRE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of IRE (3.96%) is better than 77.78% of its industry peers.
- IRE has a Return On Equity (14.70%) which is comparable to the rest of the industry.
- IRE has a better Return On Invested Capital (6.54%) than 77.78% of its industry peers.
- IRE had an Average Return On Invested Capital over the past 3 years of 4.03%. This is in line with the industry average of 5.84%.
- The 3 year average ROIC (4.03%) for IRE is below the current ROIC(6.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 14.7% | ||
| ROIC | 6.54% |
ROA(3y)2.1%
ROA(5y)2.36%
ROE(3y)8.88%
ROE(5y)9.69%
ROIC(3y)4.03%
ROIC(5y)4.1%
1.3 Margins
- IRE's Profit Margin of 4.85% is on the low side compared to the rest of the industry. IRE is outperformed by 66.67% of its industry peers.
- IRE's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.86%, IRE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- IRE's Operating Margin has declined in the last couple of years.
- IRE's Gross Margin of 59.21% is fine compared to the rest of the industry. IRE outperforms 72.22% of its industry peers.
- IRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.86% | ||
| PM (TTM) | 4.85% | ||
| GM | 59.21% |
OM growth 3Y-3.32%
OM growth 5Y-4.67%
PM growth 3Y-10.2%
PM growth 5Y-4.72%
GM growth 3Y2.02%
GM growth 5Y-0.89%
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.
- Compared to 1 year ago, IRE has about the same amount of shares outstanding.
- The number of shares outstanding for IRE has been reduced compared to 5 years ago.
- IRE has a worse debt/assets ratio than last year.
2.2 Solvency
- IRE has an Altman-Z score of 1.47. This is a bad value and indicates that IRE is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of IRE (1.47) is better than 83.33% of its industry peers.
- IRE has a debt to FCF ratio of 20.33. This is a negative value and a sign of low solvency as IRE would need 20.33 years to pay back of all of its debts.
- IRE has a Debt to FCF ratio of 20.33. This is amongst the best in the industry. IRE outperforms 83.33% of its industry peers.
- IRE has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- IRE has a Debt to Equity ratio of 1.47. This is comparable to the rest of the industry: IRE outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 20.33 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.45
WACC4.52%
2.3 Liquidity
- A Current Ratio of 0.87 indicates that IRE may have some problems paying its short term obligations.
- IRE's Current ratio of 0.87 is on the low side compared to the rest of the industry. IRE is outperformed by 72.22% of its industry peers.
- A Quick Ratio of 0.85 indicates that IRE may have some problems paying its short term obligations.
- IRE has a Quick ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- IRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.57%, which is quite good.
- The Earnings Per Share has been growing slightly by 2.80% on average over the past years.
- Looking at the last year, IRE shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
- IRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.66% yearly.
EPS 1Y (TTM)18.57%
EPS 3Y-3.11%
EPS 5Y2.8%
EPS Q2Q%26.41%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y6.94%
Revenue growth 5Y7.66%
Sales Q2Q%27.29%
3.2 Future
- Based on estimates for the next years, IRE will show a small growth in Earnings Per Share. The EPS will grow by 7.21% on average per year.
- The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y6.74%
EPS Next 3Y5.97%
EPS Next 5Y7.21%
Revenue Next Year12.86%
Revenue Next 2Y6.13%
Revenue Next 3Y4.71%
Revenue Next 5Y2.45%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.02, the valuation of IRE can be described as very cheap.
- IRE's Price/Earnings ratio is rather cheap when compared to the industry. IRE is cheaper than 94.44% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. IRE is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.16, the valuation of IRE can be described as very reasonable.
- 100.00% of the companies in the same industry are more expensive than IRE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRE indicates a rather cheap valuation: IRE is cheaper than 94.44% of the companies listed in the same industry.
- 83.33% of the companies in the same industry are more expensive than IRE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
- IRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.64
PEG (5Y)2.51
EPS Next 2Y6.74%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.81%, IRE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.30, IRE pays a better dividend. On top of this IRE pays more dividend than 83.33% of the companies listed in the same industry.
- IRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
- On average, the dividend of IRE grows each year by 15.97%, which is quite nice.
Dividend Growth(5Y)15.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 67.26% of the earnings are spent on dividend by IRE. This is not a sustainable payout ratio.
- IRE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP67.26%
EPS Next 2Y6.74%
EPS Next 3Y5.97%
IREN SPA / IRE.MI FAQ
Can you provide the ChartMill fundamental rating for IREN SPA?
ChartMill assigns a fundamental rating of 5 / 10 to IRE.MI.
Can you provide the valuation status for IREN SPA?
ChartMill assigns a valuation rating of 8 / 10 to IREN SPA (IRE.MI). This can be considered as Undervalued.
What is the profitability of IRE stock?
IREN SPA (IRE.MI) has a profitability rating of 5 / 10.
What is the expected EPS growth for IREN SPA (IRE.MI) stock?
The Earnings per Share (EPS) of IREN SPA (IRE.MI) is expected to grow by 10.92% in the next year.
Can you provide the dividend sustainability for IRE stock?
The dividend rating of IREN SPA (IRE.MI) is 7 / 10 and the dividend payout ratio is 67.26%.