A2A SpA (A2A) AI Stock Analysis

• Market Cap: €6.83B
• Dividend Yield: 4.63%
• Average Volume (3M): 6.43M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.68
• Revenue Growth: 2.73%
• EPS Growth: 6.02%
• Country: IT
• Employees: 14,777
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): N/A
• Shares Outstanding: 3,132,905,300
• 10 Day Avg. Volume: 8,231,034
• 30 Day Avg. Volume: 6,432,365
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €2.52
• Price Target Upside: 16.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: €2.50 ▲(15.74% Upside)

A2A SpA's overall stock score is driven by its solid financial performance and attractive valuation. The company's stable financial position and appealing dividend yield are significant strengths. However, the lack of strong technical momentum and areas for improvement in cost management and cash flow efficiency slightly temper the overall score.

A2A SpA Business Overview & Revenue Model

Company Description

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, waste treatment, and wind plants with a total installed capacity of 8.9 GW; and purchases and sells electricity, gas, fuels, and environmental certificates. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting and traffic regulation systems, votive lamps, street lights, and water purification and sewer activities, as well as offers energy efficiency and electric mobility services. Additionally, the company provides telecommunication services, including management of fixed and mobile phone lines, and data transmission lines; management and development of infrastructures to support communications; and implementation and management of video surveillance and access control systems, as well as designs solutions and applications for creating new models of cities and territories. A2A S.p.A. is headquartered in Brescia, Italy.

How the Company Makes Money

A2A generates revenue through various key streams, primarily from the sale of electricity and gas to residential, commercial, and industrial customers. Additionally, the company earns income from its operations in waste management, including collection, recycling, and disposal services. The water services segment contributes to revenue through billing customers for water supply and wastewater treatment. A2A also benefits from partnerships with local governments and municipalities for public utility services, which provide a stable revenue base. The company's investments in renewable energy sources further enhance its earnings potential by capitalizing on the growing demand for sustainable energy solutions.

A2A SpA Financial Statement Overview

Summary

A2A SpA shows solid financial performance with strengths in revenue growth and operational efficiency. The balance sheet is stable with controlled leverage, though there is room for improvement in cost management and cash flow efficiency.

Income Statement

A2A SpA has shown commendable recovery with a TTM revenue of €13.3 billion, marking a moderate increase from the previous year. Gross profit margin stands at 13.1%, while net profit margin is 6.2%. The company maintains a healthy EBITDA margin of 17.2%, indicating good operational efficiency. However, there is a slight decline in net income compared to the prior year, suggesting potential areas for improving cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.24, indicating moderate leverage. The equity ratio is 28.0%, showing a balanced approach to financing with a substantial portion of assets funded by equity. Return on Equity (ROE) is 14.5%, which is solid but could be improved. The company's increase in stockholders' equity is a positive sign of financial health.

Cash Flow

A2A SpA's cash flow statement reveals a strong operating cash flow to net income ratio of 2.24, reflecting robust cash generation from operations. Free cash flow has significantly improved to €755 million from €408 million the previous year, reflecting better capital efficiency. However, the free cash flow to net income ratio is less than ideal at 0.91, suggesting room for further improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.30B	12.57B	14.49B	22.95B	11.35B	6.67B
Gross Profit	1.74B	1.58B	2.90B	2.44B	2.26B	1.98B
EBITDA	2.29B	2.31B	1.85B	1.58B	1.33B	1.10B
Net Income	827.00M	864.00M	659.00M	401.00M	504.00M	364.00M
Balance Sheet
Total Assets	20.33B	19.89B	18.80B	21.37B	18.01B	12.23B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.55B	1.47B	2.60B	973.00M	1.02B
Total Debt	7.06B	7.27B	6.35B	6.89B	5.07B	4.50B
Total Liabilities	14.07B	13.89B	14.00B	16.90B	13.71B	8.11B
Stockholders Equity	5.70B	5.45B	4.24B	3.90B	3.76B	3.54B
Cash Flow
Free Cash Flow	755.00M	408.00M	-336.00M	20.00M	61.00M	-141.00M
Operating Cash Flow	1.85B	1.46B	1.04B	1.26B	1.14B	597.00M
Investing Cash Flow	-2.91B	-2.81B	-1.36B	-1.14B	-1.59B	-802.00M
Financing Cash Flow	1.23B	1.27B	-932.00M	1.50B	412.00M	783.00M

A2A SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:A2A, the sentiment is Positive. The current price of 2.16 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 2.16, and above the 200-day MA of 2.15, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 67.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:A2A.

A2A SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRE	71 Outperform	3.33B	10.85	9.21%	5.00%	13.50%	19.36%
A2A	69 Neutral	€6.83B	8.26	16.17%	4.63%	2.73%	6.02%
HER	68 Neutral	5.47B	10.73	13.31%	4.03%	16.50%	24.03%
ENEL	64 Neutral	80.85B	12.83	18.28%	5.56%	-8.26%	24.33%
ACE	63 Neutral	4.12B	10.66	15.28%	4.93%	-15.52%	19.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

A2A SpA Corporate Events

A2A S.p.A. Finalizes Sale of Gas Network Assets to Ascopiave

A2A S.p.A., along with its subsidiaries Unareti S.p.A. and LD Reti S.r.l., has completed the sale of its gas network assets to Ascopiave S.p.A. The transaction involves the transfer of 100% of the shares of AP RETI GAS North S.r.l., which manages approximately 490,000 gas distribution points in several Italian provinces. The deal, valued at 430 million euros, will be effective from July 1, 2025, and reflects the valuation as of December 31, 2023. This strategic move is expected to impact A2A’s operations by streamlining its asset portfolio and potentially enhancing its market positioning.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR2.50 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.