DB:TZ8

Stock Analysis Report

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Executive Summary

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Iren's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TZ8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

TZ8

0.5%

DE Integrated Utilities

3.0%

DE Market


1 Year Return

-6.5%

TZ8

18.9%

DE Integrated Utilities

13.3%

DE Market

Return vs Industry: TZ8 underperformed the German Integrated Utilities industry which returned 18.3% over the past year.

Return vs Market: TZ8 underperformed the German Market which returned 10.3% over the past year.


Shareholder returns

TZ8IndustryMarket
7 Day3.0%0.5%3.0%
30 Day3.5%1.0%1.7%
90 Day5.0%11.4%20.3%
1 Year-2.6%-6.5%21.6%18.9%15.8%13.3%
3 Year9.1%-2.3%38.0%24.2%7.3%-1.3%
5 Year85.6%55.5%56.2%30.1%21.4%5.1%

Price Volatility Vs. Market

How volatile is Iren's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Iren undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TZ8 (€2.21) is trading below our estimate of fair value (€4.43)

Significantly Below Fair Value: TZ8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TZ8 is good value based on its PE Ratio (13.4x) compared to the XE Integrated Utilities industry average (19.6x).

PE vs Market: TZ8 is good value based on its PE Ratio (13.4x) compared to the German market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: TZ8 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TZ8 is good value based on its PB Ratio (1.3x) compared to the DE Integrated Utilities industry average (2.8x).


Next Steps

Future Growth

How is Iren forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TZ8's forecast earnings growth (7.9% per year) is above the savings rate (0.2%).

Earnings vs Market: TZ8's earnings (7.9% per year) are forecast to grow slower than the German market (24.7% per year).

High Growth Earnings: TZ8's earnings are forecast to grow, but not significantly.

Revenue vs Market: TZ8's revenue (5.3% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: TZ8's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TZ8's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Iren performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TZ8 has high quality earnings.

Growing Profit Margin: TZ8's current net profit margins (5.9%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: TZ8's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: TZ8's earnings growth over the past year (5.1%) is below its 5-year average (13.5% per year).

Earnings vs Industry: TZ8 earnings growth over the past year (5.1%) underperformed the Integrated Utilities industry 5.1%.


Return on Equity

High ROE: TZ8's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Iren's financial position?


Financial Position Analysis

Short Term Liabilities: TZ8's short term assets (€1.7B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: TZ8's short term assets (€1.7B) do not cover its long term liabilities (€4.4B).


Debt to Equity History and Analysis

Debt Level: TZ8's debt to equity ratio (133%) is considered high.

Reducing Debt: TZ8's debt to equity ratio has reduced from 137.2% to 133% over the past 5 years.

Debt Coverage: TZ8's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: TZ8's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Iren current dividend yield, its reliability and sustainability?

4.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TZ8's dividend (4.09%) is higher than the bottom 25% of dividend payers in the German market (1.22%).

High Dividend: TZ8's dividend (4.09%) is in the top 25% of dividend payers in the German market (3.77%)


Stability and Growth of Payments

Stable Dividend: TZ8's dividend payments have been volatile in the past 10 years.

Growing Dividend: TZ8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), TZ8's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TZ8's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

Vito Bianco (49 yo)

4.25yrs

Tenure

€454,300

Compensation

Mr. Vito Massimiliano Bianco has been the Chief Executive Officer at Iren SpA since May 9, 2016 and its Director & General Manager since December 1, 2014 & July 2, 2019 respectively. Mr. Bianco served as C ...


CEO Compensation Analysis

Compensation vs Market: Vito's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.50M).

Compensation vs Earnings: Vito's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Vito Bianco
CEO, GM & Director4.25yrs€454.30kno data
Moris Ferretti
Vice-Chairman1.25yrs€17.30kno data
Renato Boero
Chairperson1.25yrsno datano data
Giuseppe Gatti
Chairman - Electrone S p Ano datano datano data
Aldo Fiamberti
Chairman - AEM T E S r lno datano datano data
Adriano De Luca
CEO - AEM2Net S p A and Director - AEM2Net S p Ano datano datano data
Carmelo Lo Fiego
Chairman - AEM Torino Service S r l and Director - AEM Torino Service S r lno datano datano data
Umberto Bocchino
Chairman - AEM2Net S p A and Director - AEM2Net S p Ano datano datano data
Michele Rutigliano
Chairperson of Board of Statutory Auditorsno datano datano data
Licia Soncini
Independent Director4.25yrsno datano data
Pietro Giampellegrini
Independent Director1.25yrsno datano data
Giacomo Malmesi
Independent Director1.25yrsno datano data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: TZ8's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Iren SpA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Iren SpA
  • Ticker: TZ8
  • Exchange: DB
  • Founded:
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €2.924b
  • Shares outstanding: 1.29b
  • Website: https://www.gruppoiren.it

Number of Employees


Location

  • Iren SpA
  • Via Nubi di Magellano, 30
  • Reggio Emilia
  • Reggio Emilia
  • 42123
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IREBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2000
IRDE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2000
0MUNLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2000
TZ8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000
IREMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2000

Biography

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 20:36
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.