IREN SPA (IRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRE - IT0003027817 - Common Stock
2.678 EUR
+0 (+0.07%)
Taking everything into account, IRE scores 5 out of 10 in our fundamental rating. IRE was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- In the past 5 years IRE has always been profitable.
- IRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.96%, IRE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- IRE has a Return On Equity of 14.70%. This is comparable to the rest of the industry: IRE outperforms 55.56% of its industry peers.
- IRE has a Return On Invested Capital of 6.54%. This is in the better half of the industry: IRE outperforms 77.78% 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 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
- IRE has a Profit Margin of 4.85%. This is in the lower half of the industry: IRE underperforms 66.67% of its industry peers.
- IRE's Profit Margin has declined in the last couple of years.
- IRE's Operating Margin of 8.86% is on the low side compared to the rest of the industry. IRE is outperformed by 66.67% 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 72.22% of its industry peers.
- IRE's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRE is creating some value.
- IRE has about the same amout of shares outstanding than it did 1 year ago.
- 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
- 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.
- IRE has a Altman-Z score of 1.47. This is amongst the best in the industry. IRE outperforms 83.33% of its industry peers.
- 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 83.33% of the companies in the same industry.
- 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 of 1.47. This is comparable to the rest of the industry: IRE outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 20.33 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.44
WACC4.53%
2.3 Liquidity
- A Current Ratio of 0.87 indicates that IRE may have some problems paying its short term obligations.
- With a Current ratio value of 0.87, IRE is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- 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
- 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.
- The Earnings Per Share has been growing slightly by 2.80% on average over the past years.
- The Revenue has grown by 15.47% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 7.21% on average over the next years.
- 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
- 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
- With a Price/Earnings ratio of 7.05, the valuation of IRE can be described as very cheap.
- Based on the Price/Earnings ratio, IRE is valued cheaper than 94.44% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. IRE is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 11.20, the valuation of IRE can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IRE indicates a rather cheap valuation: IRE is cheaper than 100.00% of the companies listed in the same industry.
- IRE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IRE is valued cheaper than 94.44% of the companies in the same industry.
- 83.33% of the companies in the same industry are more expensive than IRE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.19 | ||
| EV/EBITDA | 4.93 |
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)0.65
PEG (5Y)2.51
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 83.33% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, IRE pays a better dividend.
| 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.
- IRE's earnings are growing slower than its dividend. 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%.