Company DescriptionItalgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy. It is involved in the transportation of gas through local pipeline networks from the delivery points at the reduction and measurement stations interconnected with the transport networks to the points of final delivery to households, enterprises, etc. The company operated a distribution network of 74,397 kilometers. It also engages in metering activities; and distributes and sells water. The company was founded in 1837 and is based in Milan, Italy.

How the Company Makes Money

Italgas S.p.A. Financial Statement Overview

Summary

Italgas S.p.A. demonstrates strong profitability and cash flow generation with a high gross profit margin and positive free cash flow growth. However, inconsistent revenue growth and high leverage pose risks to financial stability.

Income Statement

Positive

Italgas S.p.A. has demonstrated solid profitability with a strong gross profit margin of 88.83% and a net profit margin of 18.90% for 2024. However, the revenue growth has been inconsistent, showing a decline in 2024 compared to previous years. The EBIT and EBITDA margins remain robust at 30.87% and 53.51%, respectively, indicating efficient operational management despite the revenue dip.

Balance Sheet

Positive

The company's balance sheet presents a mixed picture. The debt-to-equity ratio is high at 2.92, reflecting significant leverage. However, the return on equity stands at 19.48%, indicating good profitability for equity holders. The equity ratio is relatively low at 20.53%, suggesting a heavy reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Very Positive

Italgas S.p.A. shows a strong improvement in cash flows, with a positive free cash flow growth rate of 171.28% from 2023 to 2024. The operating cash flow to net income ratio is 2.29, highlighting efficient cash generation from operations relative to net income. The free cash flow to net income ratio is 0.43, indicating a healthy conversion of net income into free cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.53B	2.61B	2.18B	2.10B	2.06B
	Gross Profit
2.25B	1.62B	745.46M	721.78M	781.68M
	EBIT
782.15M	1.26B	523.85M	527.34M	542.00M
	EBITDA
1.36B	1.20B	1.12B	1.03B	1.05B
	Net Income Common Stockholders
478.85M	439.57M	407.29M	362.81M	384.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
362.85M	267.19M	451.95M	1.39B	664.14M
	Total Assets
11.97B	11.14B	11.03B	10.15B	9.12B
	Total Debt
7.19B	6.92B	6.55B	6.38B	5.41B
	Net Debt
6.83B	6.67B	6.09B	4.99B	4.74B
	Total Liabilities
9.18B	8.54B	8.64B	8.01B	7.15B
	Stockholders Equity
2.46B	2.28B	2.11B	1.89B	1.74B
Cash Flow		Free Cash Flow
206.05M	-289.23M	-229.06M	20.05M	14.61M
	Operating Cash Flow
1.10B	572.67M	548.17M	839.63M	761.66M
	Investing Cash Flow
-809.13M	-857.60M	-1.28B	-813.74M	-771.63M
	Financing Cash Flow
-136.88M	82.95M	-209.17M	701.84M	411.75M

Italgas S.p.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
I10		€6.93B	12.20	20.21%	5.64%	―	―
Sector *	64 Neutral	$8.53B	10.34	4.24%	4.37%	4.14%	-13.04%
0N54		€7.30B	8.82	16.17%	4.29%	―	―
0MHD		€4.68B	13.50	13.68%	3.99%	―	―
0DME		€672.88M	18.25	4.51%	4.62%	―	―
0MUN		€3.45B	12.19	8.81%	4.44%	―	―
0NQP		€17.54B	13.93	16.18%	5.44%	―	―

* Utilities Sector Average

Performance Comparison

DE:I10

Italgas S.p.A.

6.76

2.42

55.76%

GB:0N54

A2A SpA

2.31

0.52

29.05%

GB:0MHD

ACEA SPA

21.52

5.82

37.07%

GB:0DME

Ascopiave S.p.A.

3.25

1.11

51.87%

GB:0MUN

Iren S.p.A.

2.67

0.91

51.70%

GB:0NQP

SNAM S.p.A.

5.20

1.15

28.40%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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