BIT:A2A

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.


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


Market Performance


7 Day Return

0.4%

A2A

0.8%

IT Integrated Utilities

2.3%

IT Market


1 Year Return

16.9%

A2A

16.8%

IT Integrated Utilities

10.0%

IT Market

Return vs Industry: A2A matched the Italian Integrated Utilities industry which returned 16.8% over the past year.

Return vs Market: A2A exceeded the Italian Market which returned 10% over the past year.


Share holder returns

A2AIndustryMarket
7 Day0.4%0.8%2.3%
30 Day4.2%4.1%-0.8%
90 Day5.3%3.9%-1.4%
1 Year22.4%16.9%22.8%16.8%14.8%10.0%
3 Year54.6%37.3%25.3%5.7%31.5%13.3%
5 Year181.7%133.9%18.1%-9.3%25.0%-24.8%

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 based on future cash flows and its price relative to the stock market?

23.3x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: A2A (€1.69) is trading above our estimate of fair value (€1.6)

Significantly Undervalued: A2A is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: A2A is poor value based on its PE Ratio (23.3x) compared to the Integrated Utilities industry average (22.6x).

PE vs Market: A2A is poor value based on its PE Ratio (23.3x) compared to the Italian market (16.8x).


Price Based on Expected Growth

Low PEG Ratio: A2A is poor value based on its PEG Ratio (3.1x)


Price Based on Value of Assets

PB vs Industry: A2A is good value based on its PB Ratio (1.7x) compared to the XE Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is A2A expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: A2A's forecast earnings growth (7.6% per year) is above the savings rate (2.9%).

Earnings vs Market: A2A's earnings (7.6% per year) are forecast to grow slower than the Italian market (8.8% per year).

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

Revenue vs Market: A2A's revenue (2.2% per year) is forecast to grow slower than the Italian market (3.2% per year).

High Growth Revenue: A2A's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: A2A's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has A2A performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: A2A's earnings have grown significantly by 41.6% per year over the past 5 years.

Accelerating Growth: A2A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A2A had negative earnings growth (-42.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-2.8%).


Return on Equity

High ROE: A2A's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: A2A has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: A2A has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is A2A's financial position?


Financial Position Analysis

Short Term Liabilities: A2A's short term assets (€3.1B) exceeds its short term liabilities (€2.9B)

Long Term Liabilities: A2A's short term assets (3.1B) do not cover its long term liabilities (4.1B)


Debt to Equity History and Analysis

Debt Level: A2A's debt to equity ratio (102.3%) is considered high

Reducing Debt: A2A's debt to equity ratio has reduced from 124.3% to 102.3% over the past 5 years.

Debt Coverage: A2A's debt is well covered by operating cash flow (27.4%).

Interest Coverage: A2A's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: A2A has a high level of physical assets or inventory.

Debt Coverage by Assets: A2A's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

4.73%

Expected Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.1%markettop25%4.4%industryaverage4.0%forecastin3Years4.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: A2A's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Italian market (2.1%).

High Dividend: A2A's dividend (4.13%) is low compared to the top 25% of dividend payers in the Italian market (4.42%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.3%), A2A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A2A's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

What is the CEO of A2A's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average board tenure


CEO

Luca Camerano (56yo)

5.3yrs

Tenure

€993,712

Compensation

Mr. Luca Valerio Camerano has been the Chief Executive Officer of A2A S.p.A. since June 2014 and its Managing Director since July 11, 2017. Mr. Camerano served as Director of Strategy and New Businesses at ...


CEO Compensation Analysis

Compensation vs. Market: Luca's total compensation ($USD0.00) is too low to compare against companies of similar size in the Italian market ($USD0.00).

Compensation vs Earnings: Luca's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

2.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: A2A's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Luca Camerano (56yo)

    CEO, GM & Director

    • Tenure: 5.3yrs
    • Compensation: €993.71k
  • Luigi Zampaglione

    Secretary

    • Tenure: 0yrs
  • Renata Bonfiglio

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Luca Camerano (56yo)

    CEO, GM & Director

    • Tenure: 5.3yrs
    • Compensation: €993.71k
  • Enrico Corali (55yo)

    Director

    • Tenure: 2.4yrs
  • Giambattista Brivio (73yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: €69.10k
  • Norberto Rosini (60yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: €86.10k
  • Giovanni Valotti (57yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: €514.23k
  • Giacinto Sarubbi (56yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs
    • Compensation: €55.54k
  • Dina Ravera (53yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: €99.85k
  • Luigi De Paoli (70yo)

    Director

    • Tenure: 0yrs
    • Compensation: €99.37k
  • Giovanni Comboni (62yo)

    Director

    • Tenure: 0yrs
    • Compensation: €140.37k
  • Bariatti Stefania (63yo)

    Vice Chairman

    • Tenure: 0.8yrs

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: €5.265b
  • 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
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 Analysis2019/10/14 20:39
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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