BIT:ACE

Stock Analysis Report

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Executive Summary

ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy. More Details


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ACE is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ACE's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.1%

ACE

-0.3%

IT Integrated Utilities

-2.2%

IT Market


1 Year Return

-14.0%

ACE

-7.3%

IT Integrated Utilities

-11.1%

IT Market

Return vs Industry: ACE underperformed the Italian Integrated Utilities industry which returned -7.3% over the past year.

Return vs Market: ACE underperformed the Italian Market which returned -11.2% over the past year.


Shareholder returns

ACEIndustryMarket
7 Day0.1%-0.3%-2.2%
30 Day-0.4%4.7%0.5%
90 Day-2.8%4.1%13.3%
1 Year-10.1%-14.0%-4.3%-7.3%-8.3%-11.1%
3 Year21.1%6.2%22.5%7.4%-3.9%-14.0%
5 Year63.6%31.3%34.6%4.8%25.4%-9.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ACEA 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: ACE (€17.24) is trading below our estimate of fair value (€45.52)

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


Price To Earnings Ratio

PE vs Industry: ACE is good value based on its PE Ratio (13x) compared to the XE Integrated Utilities industry average (19.9x).

PE vs Market: ACE is good value based on its PE Ratio (13x) compared to the Italian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: ACE is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: ACE is overvalued based on its PB Ratio (1.9x) compared to the XE Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACE's forecast earnings growth (4.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ACE's earnings (4.7% per year) are forecast to grow slower than the Italian market (21.6% per year).

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

Revenue vs Market: ACE's revenue (5% per year) is forecast to grow faster than the Italian market (3.2% per year).

High Growth Revenue: ACE's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACE's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has ACEA performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACE has a large one-off gain of €77.8M impacting its September 30 2020 financial results.

Growing Profit Margin: ACE's current net profit margins (8.9%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: ACE's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: ACE's earnings growth over the past year (3%) is below its 5-year average (7.9% per year).

Earnings vs Industry: ACE earnings growth over the past year (3%) underperformed the Integrated Utilities industry 4%.


Return on Equity

High ROE: ACE's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is ACEA's financial position?


Financial Position Analysis

Short Term Liabilities: ACE's short term assets (€2.6B) exceed its short term liabilities (€2.3B).

Long Term Liabilities: ACE's short term assets (€2.6B) do not cover its long term liabilities (€4.9B).


Debt to Equity History and Analysis

Debt Level: ACE's debt to equity ratio (198.9%) is considered high.

Reducing Debt: ACE's debt to equity ratio has increased from 183.4% to 198.9% over the past 5 years.

Debt Coverage: ACE's debt is not well covered by operating cash flow (16.8%).

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


Balance Sheet


Next Steps

Dividend

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

4.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACE's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Italian market (1.43%).

High Dividend: ACE's dividend (4.52%) is low compared to the top 25% of dividend payers in the Italian market (4.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.6%), ACE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACE's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Giuseppe Gola (56 yo)

0.67

Tenure

Mr. Giuseppe Gola serves as a Chief Executive Officer at Acea since May 29, 2020. Mr. Gola had been the Chief Financial Officer and Director of Finance, Administration and Contro of ACEA S.p.A. since Augus...


Board Members

NamePositionTenureCompensationOwnership
Giuseppe Gola
CEO & Director0.67yrno datano data
Maurizio Lauri
Chairman of Board of Statutory Auditors1.75yrs€75.00kno data
Alessandro Caltagirone
Independent Non-Executive Director3.75yrsno datano data
Giovanni Giani
Independent Non-Executive Director9.17yrs€30.00kno data
Massimiliano Capece del Sasso
Independent Non-Executive Director5.75yrs€20.58kno data
Michaela Castelli
Non-Executive Chairperson2.58yrsno datano data
Maria Talamonti
Standing Auditor1.75yrsno datano data
Gabriella Chiellino
Independent Non-Executive Director3.75yrsno datano data
Liliana Godino
Independent Non-Executive Director3.75yrsno datano data
Pina Murè
Statutory Auditor1.75yrsno datano data
Diane Galbe
Independent Non-Executive Director1.08yrsno datano data
Giacomo Larocca
Independent Non-Executive Director1yrno datano data

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: ACE's board of directors are not considered experienced ( 2.2 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

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


Key Information

  • Name: ACEA S.p.A.
  • Ticker: ACE
  • Exchange: BIT
  • Founded: 1909
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €3.664b
  • Shares outstanding: 212.55m
  • Website: https://www.gruppo.acea.it

Number of Employees


Location

  • ACEA S.p.A.
  • Piazzale Ostiense 2
  • Rome
  • Rome
  • 154
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACEBIT (Borsa Italiana)YesOrdinary SharesITEURJul 1999
0MHDLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1999
ACEJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
ACEMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1999
DCADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999

Biography

ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy. The company operates through Environment, Commercial and Trading, Water, Energy Infrastructure, Engineering and Se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 19:48
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.