IREN SPA (IRE.MI) Stock Fundamental Analysis
BIT:IRE - Euronext Milan - IT0003027817 - Common Stock - Currency: EUR
Taking everything into account, IRE scores 4 out of 10 in our fundamental rating. IRE was compared to 13 industry peers in the Multi-Utilities industry. There are concerns on the financial health of IRE while its profitability can be described as average. IRE has a correct valuation and a medium growth rate. Finally 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.
Each year in the past 5 years IRE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.59%, IRE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
IRE's Return On Equity of 15.23% is fine compared to the rest of the industry. IRE outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.39%, IRE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IRE is below the industry average of 6.44%.
The 3 year average ROIC (4.03%) for IRE is below the current ROIC(6.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 15.23% | ||
| ROIC | 6.39% |
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 4.93% is on the low side compared to the rest of the industry. IRE is outperformed by 61.54% of its industry peers.
In the last couple of years the Profit Margin of IRE has declined.
Looking at the Operating Margin, with a value of 9.50%, IRE is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of IRE has declined.
The Gross Margin of IRE (63.19%) is better than 84.62% of its industry peers.
IRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 4.93% | ||
| GM | 63.19% |
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.
IRE has less shares outstanding than it did 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 1.31, we must say that IRE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, IRE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Debt to FCF ratio of IRE is 19.79, which is on the high side as it means it would take IRE, 19.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IRE (19.79) is worse than 61.54% of its industry peers.
IRE has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
IRE has a Debt to Equity ratio of 1.71. This is in the lower half of the industry: IRE underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.43
WACC4.48%
2.3 Liquidity
A Current Ratio of 0.89 indicates that IRE may have some problems paying its short term obligations.
IRE has a worse Current ratio (0.89) than 76.92% of its industry peers.
A Quick Ratio of 0.86 indicates that IRE may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, IRE is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.90% over the past year.
IRE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.80% yearly.
The Revenue has been growing slightly by 1.83% in the past 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)9.9%
EPS 3Y-3.11%
EPS 5Y2.8%
EPS Q2Q%11.03%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y6.94%
Revenue growth 5Y7.66%
Sales Q2Q%33.26%
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 5.75% on average per year.
The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y14.17%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue Next Year15.47%
Revenue Next 2Y7.4%
Revenue Next 3Y5.41%
Revenue Next 5Y1.38%
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
The Price/Earnings ratio is 7.25, which indicates a rather cheap valuation of IRE.
Based on the Price/Earnings ratio, IRE is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of IRE to the average of the S&P500 Index (27.45), we can say IRE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.53 indicates a reasonable valuation of IRE.
Based on the Price/Forward Earnings ratio, IRE is valued a bit cheaper than 61.54% of the companies in the same industry.
IRE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
76.92% 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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 5.02 |
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)0.51
PEG (5Y)2.59
EPS Next 2Y7.19%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.03%, IRE is a good candidate for dividend investing.
IRE's Dividend Yield is a higher than the industry average which is at 5.16.
Compared to an average S&P500 Dividend Yield of 2.38, IRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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
43.33% of the earnings are spent on dividend by IRE. This is a bit on the high side, but may be sustainable.
The dividend of IRE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.33%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
BIT:IRE (7/4/2025, 7:00:00 PM)
2.538
-0.01 (-0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners13.33%
Inst Owner ChangeN/A
Ins Owners3.85%
Ins Owner ChangeN/A
Market Cap3.30B
Analysts86.67
Price Target2.85 (12.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend0.15
Dividend Growth(5Y)15.97%
DP43.33%
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)5.28%
PT rev (3m)18.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 10.53 | ||
| P/S | 0.37 | ||
| P/FCF | 13.05 | ||
| P/OCF | 3.05 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.02 |
EPS(TTM)0.35
EY13.79%
EPS(NY)0.24
Fwd EY9.5%
FCF(TTM)0.19
FCFY7.66%
OCF(TTM)0.83
OCFY32.81%
SpS6.82
BVpS2.21
TBVpS-0.56
PEG (NY)0.51
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 15.23% | ||
| ROCE | 9.33% | ||
| ROIC | 6.39% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 10.9% | ||
| OM | 9.5% | ||
| PM (TTM) | 4.93% | ||
| GM | 63.19% | ||
| FCFM | 2.85% |
ROA(3y)2.1%
ROA(5y)2.36%
ROE(3y)8.88%
ROE(5y)9.69%
ROIC(3y)4.03%
ROIC(5y)4.1%
ROICexc(3y)4.46%
ROICexc(5y)4.62%
ROICexgc(3y)7.57%
ROICexgc(5y)7.78%
ROCE(3y)5.79%
ROCE(5y)5.81%
ROICexcg growth 3Y-9.11%
ROICexcg growth 5Y-2.08%
ROICexc growth 3Y-7.83%
ROICexc growth 5Y-3.46%
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%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 126.66% | ||
| Cap/Sales | 9.35% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 72.29% | ||
| Profit Quality | 57.75% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.31 |
F-Score5
WACC4.48%
ROIC/WACC1.43
Cap/Depr(3y)147.56%
Cap/Depr(5y)N/A
Cap/Sales(3y)13.17%
Cap/Sales(5y)14.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.9%
EPS 3Y-3.11%
EPS 5Y2.8%
EPS Q2Q%11.03%
EPS Next Y14.17%
EPS Next 2Y7.19%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue 1Y (TTM)1.83%
Revenue growth 3Y6.94%
Revenue growth 5Y7.66%
Sales Q2Q%33.26%
Revenue Next Year15.47%
Revenue Next 2Y7.4%
Revenue Next 3Y5.41%
Revenue Next 5Y1.38%
EBIT growth 1Y11.03%
EBIT growth 3Y3.4%
EBIT growth 5Y2.64%
EBIT Next Year157.81%
EBIT Next 3Y41.03%
EBIT Next 5Y23.84%
FCF growth 1Y235.77%
FCF growth 3Y9.49%
FCF growth 5Y4.74%
OCF growth 1Y59.22%
OCF growth 3Y4.45%
OCF growth 5Y8.37%