IREN SPA (IRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRE - IT0003027817 - Common Stock
2.652 EUR
-0.02 (-0.67%)
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! IRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year IRE was profitable.
- IRE had a positive operating cash flow in the past year.
- Each year in the past 5 years IRE has been profitable.
- In the past 5 years IRE always reported a positive cash flow from operatings.
1.2 Ratios
- IRE has a Return On Assets of 3.96%. This is in the better half of the industry: IRE outperforms 76.47% of its industry peers.
- IRE's Return On Equity of 14.70% is in line compared to the rest of the industry. IRE outperforms 52.94% of its industry peers.
- The Return On Invested Capital of IRE (6.54%) is better than 76.47% 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 last Return On Invested Capital (6.54%) for IRE is above the 3 year average (4.03%), which is a sign of increasing profitability.
| 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
- The Profit Margin of IRE (4.85%) is worse than 64.71% of its industry peers.
- IRE's Profit Margin has declined in the last couple of years.
- IRE has a worse Operating Margin (8.86%) than 64.71% of its industry peers.
- In the last couple of years the Operating Margin of IRE has declined.
- IRE has a Gross Margin of 59.21%. This is in the better half of the industry: IRE outperforms 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.
- IRE has about the same amout of shares outstanding than it did 1 year ago.
- 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.
- Looking at the Altman-Z score, with a value of 1.47, IRE belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
- The Debt to FCF ratio of IRE is 20.33, which is on the high side as it means it would take IRE, 20.33 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 1.47, IRE is in line with its industry, outperforming 58.82% of the companies in the same industry.
| 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 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 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
- 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.
- IRE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.47%.
- The Revenue has been growing slightly by 7.66% on average over the past years.
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.
- Based on estimates for the next years, IRE will show a small growth in Revenue. The Revenue will grow by 2.45% on average per year.
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
- The Price/Earnings ratio is 6.98, which indicates a rather cheap valuation of IRE.
- Based on the Price/Earnings ratio, IRE is valued cheaper than 94.12% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IRE is valued rather cheaply.
- IRE is valuated reasonably with a Price/Forward Earnings ratio of 11.09.
- 100.00% of the companies in the same industry are more expensive than IRE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of IRE to the average of the S&P500 Index (25.98), we can say IRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IRE is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
- IRE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRE is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| 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)2.49
EPS Next 2Y6.74%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
- IRE has a Yearly Dividend Yield of 4.81%, which is a nice return.
- IRE's Dividend Yield is rather good when compared to the industry average which is at 4.30. IRE pays more dividend than 82.35% of the companies in the same industry.
- IRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- IRE pays out 67.26% of its income as dividend. 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 6 / 10 and the dividend payout ratio is 67.26%.