IREN SPA (IRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRE - IT0003027817 - Common Stock
2.652 EUR
-0.02 (-0.67%)
Taking everything into account, IRE scores 5 out of 10 in our fundamental rating. IRE was compared to 17 industry peers in the Multi-Utilities industry. There are concerns on the financial health of IRE while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on IRE.
1. Profitability
1.1 Basic Checks
- IRE had positive earnings in the past year.
- In the past year IRE had a positive cash flow from operations.
- In the past 5 years IRE has always been profitable.
- Each year in the past 5 years IRE had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.96%, IRE is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- The Return On Equity of IRE (14.70%) is comparable to the rest of the industry.
- The Return On Invested Capital of IRE (6.54%) is better than 76.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IRE is in line with the industry average of 6.01%.
- 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
- Looking at the Profit Margin, with a value of 4.85%, IRE is doing worse than 64.71% of the companies in the same industry.
- IRE's Profit Margin has declined in the last couple of years.
- IRE has a Operating Margin of 8.86%. This is in the lower half of the industry: IRE underperforms 64.71% of its industry peers.
- In the last couple of years the Operating Margin of IRE has declined.
- The Gross Margin of IRE (59.21%) is better than 70.59% of its industry peers.
- In the last couple of years the Gross Margin of IRE has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRE is still creating some value.
- Compared to 1 year ago, IRE has about the same amount of shares outstanding.
- Compared to 5 years ago, IRE has less shares outstanding
- Compared to 1 year ago, IRE has a worse debt to assets ratio.
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 82.35% 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.
- With an excellent Debt to FCF ratio value of 20.33, IRE belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
- 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 58.82% 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.
- The Current ratio of IRE (0.87) is worse than 70.59% of its industry peers.
- A Quick Ratio of 0.85 indicates that IRE may have some problems paying its short term obligations.
- IRE's Quick ratio of 0.85 is in line compared to the rest of the industry. IRE outperforms 52.94% of 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.
- Measured over the past 5 years, IRE shows a small growth in Earnings Per Share. The EPS has been growing by 2.80% on average per year.
- Looking at the last year, IRE shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
- Measured over the past years, IRE shows a small growth in Revenue. The Revenue has been growing by 7.66% on average per year.
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
- IRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.21% yearly.
- The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y10.88%
EPS Next 2Y6.43%
EPS Next 3Y6.04%
EPS Next 5Y7.21%
Revenue Next Year12.86%
Revenue Next 2Y6.13%
Revenue Next 3Y4.71%
Revenue Next 5Y2.45%
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
- A Price/Earnings ratio of 6.98 indicates a rather cheap valuation of IRE.
- 94.12% of the companies in the same industry are more expensive than IRE, based on the Price/Earnings ratio.
- IRE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 11.15, the valuation of IRE can be described as reasonable.
- Based on the Price/Forward Earnings ratio, IRE is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. IRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
- 94.12% of the companies in the same industry are more expensive than IRE, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IRE is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
- The 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)2.49
EPS Next 2Y6.43%
EPS Next 3Y6.04%
5. Dividend
5.1 Amount
- IRE has a Yearly Dividend Yield of 4.69%, which is a nice return.
- IRE's Dividend Yield is comparable with the industry average which is at 4.55.
- Compared to an average S&P500 Dividend Yield of 1.82, IRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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 2Y6.43%
EPS Next 3Y6.04%
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 10.88% in the next year.
Can you provide the dividend sustainability for IRE stock?
The dividend rating of IREN SPA (IRE.MI) is 6 / 10 and the dividend payout ratio is 67.26%.