IREN SPA (IRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRE - IT0003027817 - Common Stock
2.668 EUR
+0.02 (+0.68%)
Overall IRE gets a fundamental rating of 5 out of 10. We evaluated IRE against 18 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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
- IRE's Return On Assets of 3.96% is fine compared to the rest of the industry. IRE outperforms 77.78% of its industry peers.
- IRE's Return On Equity of 14.70% is in line compared to the rest of the industry. IRE outperforms 55.56% of its industry peers.
- IRE has a better Return On Invested Capital (6.54%) than 77.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IRE 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
- Looking at the Profit Margin, with a value of 4.85%, IRE is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of IRE has declined.
- IRE has a worse Operating Margin (8.86%) than 66.67% of its industry peers.
- IRE's Operating Margin has declined in the last couple of years.
- IRE has a Gross Margin of 59.21%. This is in the better half of the industry: IRE outperforms 72.22% 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
- IRE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, IRE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.47, we must say that IRE is in the distress zone and has some risk of bankruptcy.
- IRE has a better Altman-Z score (1.47) 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's Debt to FCF ratio of 20.33 is amongst the best of the industry. IRE outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that IRE has dependencies on debt financing.
- IRE has a Debt to Equity ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 20.33 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.44
WACC4.53%
2.3 Liquidity
- IRE has a Current Ratio of 0.87. 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 (0.87) is worse than 72.22% of its industry peers.
- IRE has a Quick Ratio of 0.87. This is a bad value and indicates that IRE is not financially healthy enough and could expect problems in meeting its short term obligations.
- IRE's Quick ratio of 0.85 is in line compared to the rest of the industry. IRE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.57% over the past year.
- 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.
- The Revenue has grown by 15.47% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 7.21% on average over the next years.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 7.02, the valuation of IRE can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of IRE indicates a rather cheap valuation: IRE is cheaper than 94.44% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. IRE is valued rather cheaply when compared to this.
- IRE is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
- Based on the Price/Forward Earnings ratio, IRE is valued cheaper than 100.00% of the companies in the same industry.
- IRE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
- IRE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRE is cheaper than 94.44% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IRE is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 4.91 |
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)2.51
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.
- The dividend of IRE is growing, but the earnings are growing slower. 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%.