Italgas S.p.A. (IG) AI Stock Analysis

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Italgas S.p.A.

(Milan:IG)

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Rating:72Outperform

Price Target:EUR 10.00▲(9.24% Upside)

Action:upgraded

Date:11/07/26

The score is primarily driven by solid valuation (reasonable P/E and strong dividend yield) and constructive price/indicator trends, partially offset by financial constraints from high leverage and inconsistent free cash flow conversion despite strong 2025 profitability.

Positive Factors

Regulated infrastructure modelItalgas operates essential local gas distribution networks, with core revenues shaped by regulated tariffs and recognized infrastructure investment. This model provides a defined framework for remuneration and links earnings to the scale, operation, modernization, and regulatory recognition of its asset base.

Negative Factors

Elevated leverageStructurally high leverage reduces financial flexibility even though Italgas owns regulated infrastructure. A greater debt burden can constrain discretionary investment, increase sensitivity to financing costs, and leave less balance-sheet capacity to absorb higher funding needs over the next several quarters.

Italgas S.p.A. (IG) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 9.32B
Dividend Yield: 4.72%
Average Volume (3M): 2.31M
Price to Earnings (P/E): 11.0
Beta (1Y): 0.32
Revenue Growth: ―
EPS Growth: ―
Country: Italy
Employees: 6,234
Sector: Utilities
Sector Strength: 66
Industry: Regulated Gas

Italgas S.p.A. Business Overview & Revenue Model

Company Description

Italgas S.p.A. and its affiliated entities specialize in the distribution of natural gas across Italy. Their core operations involve the transportation of gas via local pipeline infrastructure, extending from designated delivery points—reduction and...

How the Company Makes Money

Italgas makes money mainly by operating regulated gas distribution networks and earning revenues that are largely determined by the regulatory framework governing gas distribution. Its core revenue stream comes from tariffs/regulated remuneration ass...

Italgas S.p.A. Financial Statement Overview

Summary

Profitability improved strongly in 2025 (net margin rising to ~26.5%) and revenue re-accelerated (+9.8% YoY), but the overall financial profile is constrained by elevated leverage (~2.9–3.4x debt/equity) and uneven free cash flow (negative in 2022–2023 and materially weaker in 2025 with limited net-income coverage).

Income Statement

78Positive

Balance Sheet

62Positive

Cash Flow

54Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.51B	3.51B	2.51B	2.61B	2.18B	2.10B
Gross Profit	1.87B	1.53B	1.72B	1.62B	745.46M	721.78M
EBITDA	2.36B	1.86B	1.36B	1.20B	1.12B	1.02B
Net Income	889.29M	672.30M	478.85M	439.57M	407.29M	362.81M
Balance Sheet
Total Assets	19.13B	18.87B	11.97B	11.14B	11.03B	10.15B
Cash, Cash Equivalents and Short-Term Investments	1.25B	491.38M	362.85M	267.19M	451.95M	1.39B
Total Debt	12.11B	11.42B	7.19B	6.92B	6.55B	6.38B
Total Liabilities	15.01B	14.70B	9.18B	8.54B	8.64B	8.01B
Stockholders Equity	3.77B	3.82B	2.46B	2.28B	2.11B	1.89B
Cash Flow
Free Cash Flow	736.36M	537.76M	206.05M	-289.23M	-229.06M	20.05M
Operating Cash Flow	2.23B	1.63B	1.10B	572.67M	548.17M	839.63M
Investing Cash Flow	-1.33B	-3.17B	-809.13M	-857.60M	-1.28B	-813.74M
Financing Cash Flow	2.15B	1.67B	-136.88M	82.95M	-209.17M	701.84M

Italgas S.p.A. Technical Analysis

Technical Analysis SentimentPositive

Last Price9.15

Price Trends

50DMA8.52Positive

100DMA9.03Positive

200DMA9.53Negative

Market Momentum

MACD0.18Negative

RSI68.07Neutral

STOCH80.79Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IG, the sentiment is Positive. The current price of 9.15 is above the 20-day moving average (MA) of 8.78, above the 50-day MA of 8.52, and below the 200-day MA of 9.53, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IG.

Italgas S.p.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

IT:IG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT:ASC	74Outperform	EUR 622.26M	17.19	4.01%	11.13%	17.24%	-56.49%
IT:IG	72Outperform	EUR 9.32B	11.03	23.44%	4.72%	―	―
IT:HER	69Neutral	EUR 5.50B	11.75	11.57%	4.26%	-11.37%	-8.54%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
IT:SRG	64Neutral	EUR 20.67B	18.11	13.10%	3.40%	8.61%	-17.99%
IT:IRE	63Neutral	EUR 3.17B	10.70	8.94%	5.60%	-8.15%	-2.68%

* Utilities Sector Average

Performance Comparison

IT:IG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:IG	Italgas	9.15	0.26	2.88%
IT:ASC	Ascopiave S.p.A.	2.88	-0.28	-8.96%
IT:EDNR	Edison Spa (0N4J)	1.87	-0.56	-23.16%
IT:HER	HERA S.p.A.	3.76	-0.02	-0.42%
IT:IRE	Iren S.p.A.	2.47	0.13	5.56%
IT:SRG	SNAM S.p.A.	6.16	0.78	14.55%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

Italgas S.p.A. AI Stock Analysis