BIT:A2A

Stock Analysis Report

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Executive Summary

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has A2A's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A2A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

A2A

-1.6%

IT Integrated Utilities

-0.5%

IT Market


1 Year Return

-31.2%

A2A

-3.9%

IT Integrated Utilities

-16.1%

IT Market

Return vs Industry: A2A underperformed the Italian Integrated Utilities industry which returned -5% over the past year.

Return vs Market: A2A underperformed the Italian Market which returned -16.1% over the past year.


Shareholder returns

A2AIndustryMarket
7 Day-0.2%-1.6%-0.5%
30 Day-3.9%2.9%-0.06%
90 Day-7.3%1.3%-4.1%
1 Year-26.6%-31.2%-0.8%-3.9%-14.0%-16.1%
3 Year-7.1%-19.9%9.5%-4.2%-13.1%-21.1%
5 Year15.6%-7.0%22.1%-4.7%-7.7%-28.8%

Price Volatility Vs. Market

How volatile is A2A's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A2A undervalued compared to its fair value and its price relative to the market?

9.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A2A (€1.14) is trading above our estimate of fair value (€1.04)

Significantly Below Fair Value: A2A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A2A is good value based on its PE Ratio (9.4x) compared to the XE Integrated Utilities industry average (24.1x).

PE vs Market: A2A is good value based on its PE Ratio (9.4x) compared to the Italian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: A2A is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: A2A is good value based on its PB Ratio (1.1x) compared to the XE Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

How is A2A forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A2A's forecast earnings growth (5% per year) is above the savings rate (2%).

Earnings vs Market: A2A's earnings (5% per year) are forecast to grow slower than the Italian market (23.9% per year).

High Growth Earnings: A2A's earnings are forecast to grow, but not significantly.

Revenue vs Market: A2A's revenue (4.5% per year) is forecast to grow faster than the Italian market (3.4% per year).

High Growth Revenue: A2A's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A2A's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has A2A performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A2A has high quality earnings.

Growing Profit Margin: A2A's current net profit margins (5.7%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: A2A's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: A2A's earnings growth over the past year (67%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: A2A earnings growth over the past year (67%) exceeded the Integrated Utilities industry 4.8%.


Return on Equity

High ROE: A2A's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is A2A's financial position?


Financial Position Analysis

Short Term Liabilities: A2A's short term assets (€2.9B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: A2A's short term assets (€2.9B) do not cover its long term liabilities (€4.2B).


Debt to Equity History and Analysis

Debt Level: A2A's debt to equity ratio (98.6%) is considered high.

Reducing Debt: A2A's debt to equity ratio has reduced from 118.4% to 98.6% over the past 5 years.

Debt Coverage: A2A's debt is well covered by operating cash flow (21.4%).

Interest Coverage: A2A's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is A2A current dividend yield, its reliability and sustainability?

6.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: A2A's dividend (6.8%) is higher than the bottom 25% of dividend payers in the Italian market (1.57%).

High Dividend: A2A's dividend (6.8%) is in the top 25% of dividend payers in the Italian market (5.55%)


Stability and Growth of Payments

Stable Dividend: A2A's dividend payments have been volatile in the past 10 years.

Growing Dividend: A2A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.7%), A2A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A2A's dividends in 3 years are forecast to be covered by earnings (84% payout ratio).


Next Steps

Management

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

0.8yrs

Average board tenure


CEO

Renato Mazzoncini

0.75

Tenure

Renato Mazzoncini serves as CEO, MD & Director at A2A S.p.A. since 2020.


Board Members

NamePositionTenureCompensationOwnership
Renato Mazzoncini
CEO, MD & Director0.75yrno datano data
Giacinto Sarubbi
Chairman of Board of Statutory Auditorsno data€55.54kno data
Secondina Ravera
Non-Executive Director5.33yrs€99.85kno data
Luigi De Paoli
Non-Executive Directorno data€99.37kno data
Giovanni Comboni
Vice Chairman of the Board0.75yr€140.37kno data
Gaudiana Giusti
Non-Executive Director3.42yrsno datano data
Stefania Bariatti
Non-Executive Director1.75yrsno datano data
Maurizio D'Andrea
Director0.75yrno datano data
Marco Angelo Patuano
Chairman of the Board0.75yrno datano data
Vincenzo Cariello
Director0.75yrno datano data
Fabio Lavini
Director0.75yrno datano data
Christine Perrotti
Director0.75yrno datano data

0.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: A2A's board of directors are not considered experienced ( 0.8 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

A2A S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A2A S.p.A.
  • Ticker: A2A
  • Exchange: BIT
  • Founded:
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €3.607b
  • Shares outstanding: 3.11b
  • Website: https://www.a2a.eu

Number of Employees


Location

  • A2A S.p.A.
  • Via Lamarmora 230
  • Brescia
  • Brescia
  • 25124
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A2ABIT (Borsa Italiana)YesOrdinary SharesITEURJul 1998
EAMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1998
0N54LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1998
AEMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1998
A2AMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1998
A2AWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1998
AEMM.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy. The company generates electricity through hydroelectric, thermoelectric, and photovoltaic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 21:45
End of Day Share Price2020/10/23 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.