BIT:ACE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record 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


Market Performance


7 Day Return

4.0%

BIT:ACE

2.9%

IT Integrated Utilities

3.4%

IT Market


1 Year Return

36.2%

BIT:ACE

16.3%

IT Integrated Utilities

-1.9%

IT Market

ACE outperformed the Integrated Utilities industry which returned 15.6% over the past year.

ACE outperformed the Market in Italy which returned -3.6% over the past year.


Share holder returns

ACEIndustryMarket
7 Day4.0%2.9%3.4%
30 Day3.3%0.9%-3.7%
90 Day8.0%8.2%1.6%
1 Year41.9%36.2%20.8%16.3%2.3%-1.9%
3 Year69.7%48.8%60.9%44.1%21.1%4.3%
5 Year111.3%70.5%117.0%80.6%7.9%-35.6%

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

13.93x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

ACEA's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

ACEA's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

ACEA is good value based on earnings compared to the IT Integrated Utilities industry average.

ACEA is good value based on earnings compared to the Italy market.


Price Based on Expected Growth

ACEA is poor value based on expected growth next year.


Price Based on Value of Assets

ACEA is overvalued based on assets compared to the IT Integrated Utilities industry average.


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ACEA's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

ACEA's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

ACEA's revenue growth is positive but not above the Italy market average.

ACEA's earnings growth is positive but not above the Italy market average.

ACEA's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

ACEA is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has ACEA performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ACEA's year on year earnings growth rate has been positive over the past 5 years.

ACEA's 1-year earnings growth exceeds its 5-year average (23.4% vs 9.9%)

ACEA's earnings growth has exceeded the IT Integrated Utilities industry average in the past year (23.4% vs -25%).


Return on Equity

ACEA has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ACEA used its assets more efficiently than the IT Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

ACEA's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ACEA's financial position?


Financial Position Analysis

ACEA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ACEA's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

ACEA's level of debt (217.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (199.3% vs 217.5% today).

Debt is not well covered by operating cash flow (17.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

4.42%

Expected Dividend Yield


Dividend Yield and Payments Analysis

ACEA's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.06%).

ACEA's dividend is below the markets top 25% of dividend payers in Italy (4.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Stefano Donnarumma (52yo)

2.3yrs

Tenure

0

Mr. Stefano Antonio Donnarumma has been the Chief Executive Officer and Managing Director of ACEA S.p.A. since May 3, 2017 and serves as its Director. Mr. Donnarumma worked for about 9 years in the product ...


Board Age and Tenure

2.3yrs

Average Tenure

51yo

Average Age

The average tenure for the ACEA board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Iolanda Papalini

    Head of Administration & Financial Reporting

    • Tenure: 0.0yrs
  • Giuseppe Gola (55yo)

    CFO and Director of Finance

    • Tenure: 2.0yrs
  • Paolo Zangrillo

    Staff and Organization Executive

    • Tenure: 0.0yrs
  • Stefano Donnarumma (52yo)

    CEO, MD & Executive Director

    • Tenure: 2.3yrs
  • Elvira Angrisani

    Manager of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Enrico Laghi (50yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 0.0yrs
    • Compensation: €202.50k
  • Alessandro Caltagirone (50yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
  • Fabrice Rossignol (55yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
  • Giovanni Giani (69yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: €30.00k
  • Massimiliano Capece del Sasso (51yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: €20.58k
  • Michaela Castelli (49yo)

    Non-Executive Chairperson

    • Tenure: 1.2yrs
  • Stefano Donnarumma (52yo)

    CEO, MD & Executive Director

    • Tenure: 2.3yrs
  • Gabriella Chiellino (49yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
  • Liliana Godino (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
  • Maria Sterpetti

    Director

    • Tenure: 0.3yrs

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: €3.779b
  • Shares outstanding: 212.55m
  • Website: https://www.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
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 Analysis2019/08/21 20:45
End of Day Share Price2019/08/21 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.