IREN SPA (IRE.MI) Stock Fundamental Analysis
BIT:IRE - Euronext Milan - IT0003027817 - Common Stock - Currency: EUR
IRE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is valued correctly, but it does not seem to be growing. Finally IRE also has an excellent dividend rating.
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.
IRE had positive earnings in each of the past 5 years.
IRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IRE's Return On Assets of 3.45% is fine compared to the rest of the industry. IRE outperforms 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 15.10%, IRE is in line with its industry, outperforming 53.85% of the companies in the same industry.
IRE's Return On Invested Capital of 6.77% is in line compared to the rest of the industry. IRE outperforms 46.15% of its industry peers.
IRE had an Average Return On Invested Capital over the past 3 years of 4.32%. This is below the industry average of 6.72%.
The last Return On Invested Capital (6.77%) for IRE is above the 3 year average (4.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 15.1% | ||
| ROIC | 6.77% |
ROA(3y)2.36%
ROA(5y)2.46%
ROE(3y)9.7%
ROE(5y)9.89%
ROIC(3y)4.32%
ROIC(5y)4.38%
1.3 Margins
With a Profit Margin value of 4.84%, IRE perfoms like the industry average, outperforming 46.15% 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 9.33%. This is comparable to the rest of the industry: IRE outperforms 46.15% of its industry peers.
IRE's Operating Margin has declined in the last couple of years.
IRE has a Gross Margin of 63.85%. This is amongst the best in the industry. IRE outperforms 84.62% of its industry peers.
In the last couple of years the Gross Margin of IRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | 4.84% | ||
| GM | 63.85% |
OM growth 3Y-14.46%
OM growth 5Y-10.87%
PM growth 3Y-15.74%
PM growth 5Y-9.06%
GM growth 3Y-7.55%
GM growth 5Y-2.24%
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.
Compared to 1 year ago, IRE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that IRE is in the distress zone and has some risk of bankruptcy.
IRE's Altman-Z score of 1.23 is fine compared to the rest of the industry. IRE outperforms 76.92% of its industry peers.
IRE has a debt to FCF ratio of 17.53. This is a negative value and a sign of low solvency as IRE would need 17.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.53, IRE is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that IRE has dependencies on debt financing.
IRE has a worse Debt to Equity ratio (1.59) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 17.53 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.64
WACC4.14%
2.3 Liquidity
A Current Ratio of 0.90 indicates that IRE may have some problems paying its short term obligations.
The Current ratio of IRE (0.90) is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that IRE may have some problems paying its short term obligations.
IRE's Quick ratio of 0.87 is in line compared to the rest of the industry. IRE outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.33% over the past year.
The Earnings Per Share has been growing slightly by 1.17% on average over the past years.
Looking at the last year, IRE shows a very negative growth in Revenue. The Revenue has decreased by -15.47% in the last year.
IRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.10% yearly.
EPS 1Y (TTM)6.33%
EPS 3Y2.14%
EPS 5Y1.17%
EPS Q2Q%39.77%
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y21.22%
Revenue growth 5Y11.1%
Sales Q2Q%3.87%
3.2 Future
IRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
IRE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.56% yearly.
EPS Next Y0.39%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
EPS Next 5YN/A
Revenue Next Year-12.15%
Revenue Next 2Y-5.45%
Revenue Next 3Y-0.32%
Revenue Next 5Y-5.56%
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
The Price/Earnings ratio is 6.33, which indicates a rather cheap valuation of IRE.
Compared to the rest of the industry, the Price/Earnings ratio of IRE indicates a rather cheap valuation: IRE is cheaper than 92.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. IRE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.29 indicates a reasonable valuation of IRE.
Based on the Price/Forward Earnings ratio, IRE is valued a bit cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. IRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRE is valued a bit cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRE is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)16.39
PEG (5Y)5.42
EPS Next 2Y3.73%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.80%, IRE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.81, IRE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, IRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
5.2 History
On average, the dividend of IRE grows each year by 15.07%, which is quite nice.
Dividend Growth(5Y)15.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
44.44% of the earnings are spent on dividend by IRE. This is a bit on the high side, but may be sustainable.
IRE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.44%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
BIT:IRE (3/7/2025, 7:00:00 PM)
2.09
+0.04 (+2.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.86%
Inst Owner ChangeN/A
Ins Owners3.85%
Ins Owner ChangeN/A
Market Cap2.72B
Analysts84.44
Price Target2.4 (14.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
Yearly Dividend0.14
Dividend Growth(5Y)15.07%
DP44.44%
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)0.86%
PT rev (3m)2.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.31 | ||
| P/FCF | 8.42 | ||
| P/OCF | 2.26 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.14 |
EPS(TTM)0.33
EY15.79%
EPS(NY)0.22
Fwd EY10.76%
FCF(TTM)0.25
FCFY11.88%
OCF(TTM)0.92
OCFY44.19%
SpS6.77
BVpS2.17
TBVpS-0.53
PEG (NY)16.39
PEG (5Y)5.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 15.1% | ||
| ROCE | 9.1% | ||
| ROIC | 6.77% | ||
| ROICexc | 8.03% | ||
| ROICexgc | 14.91% | ||
| OM | 9.33% | ||
| PM (TTM) | 4.84% | ||
| GM | 63.85% | ||
| FCFM | 3.67% |
ROA(3y)2.36%
ROA(5y)2.46%
ROE(3y)9.7%
ROE(5y)9.89%
ROIC(3y)4.32%
ROIC(5y)4.38%
ROICexc(3y)5%
ROICexc(5y)4.94%
ROICexgc(3y)8.61%
ROICexgc(5y)8.19%
ROCE(3y)5.91%
ROCE(5y)5.96%
ROICexcg growth 3Y-2.21%
ROICexcg growth 5Y-4.7%
ROICexc growth 3Y-3.45%
ROICexc growth 5Y-6.48%
OM growth 3Y-14.46%
OM growth 5Y-10.87%
PM growth 3Y-15.74%
PM growth 5Y-9.06%
GM growth 3Y-7.55%
GM growth 5Y-2.24%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 17.53 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 135.88% | ||
| Cap/Sales | 9.97% | ||
| Interest Coverage | 6.68 | ||
| Cash Conversion | 81.84% | ||
| Profit Quality | 75.68% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.23 |
F-Score5
WACC4.14%
ROIC/WACC1.64
Cap/Depr(3y)158.15%
Cap/Depr(5y)N/A
Cap/Sales(3y)13.72%
Cap/Sales(5y)14.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.33%
EPS 3Y2.14%
EPS 5Y1.17%
EPS Q2Q%39.77%
EPS Next Y0.39%
EPS Next 2Y3.73%
EPS Next 3Y2.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y21.22%
Revenue growth 5Y11.1%
Sales Q2Q%3.87%
Revenue Next Year-12.15%
Revenue Next 2Y-5.45%
Revenue Next 3Y-0.32%
Revenue Next 5Y-5.56%
EBIT growth 1Y14.55%
EBIT growth 3Y3.69%
EBIT growth 5Y-0.98%
EBIT Next Year167.08%
EBIT Next 3Y43.87%
EBIT Next 5Y23.8%
FCF growth 1Y194.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y137.19%
OCF growth 3Y-6.08%
OCF growth 5Y-2.65%