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ACE

ACEABIT:ACE Stock Report

Market Cap

€3.9b

7D

0.9%

1Y

8.0%

Updated

25 Oct, 2021

Data

Company Financials +
ACE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends5/6

ACE Overview

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

ACEA Competitors

Hera

BIT:HER

€5.2b

Ascopiave

BIT:ASC

€797.5m

Acsm-Agam

BIT:ACS

€497.3m

Price History & Performance

Summary of all time highs, changes and price drops for ACEA
Historical stock prices
Current Share Price€18.58
52 Week High€16.02
52 Week Low€21.48
Beta0.93
1 Month Change-5.97%
3 Month Change-5.20%
1 Year Change8.02%
3 Year Change61.85%
5 Year Change57.46%
Change since IPO65.89%

Recent News & Updates

Oct 23
Here's Why We Think ACEA (BIT:ACE) Is Well Worth Watching

Here's Why We Think ACEA (BIT:ACE) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Sep 21
ACEA (BIT:ACE) Takes On Some Risk With Its Use Of Debt

ACEA (BIT:ACE) Takes On Some Risk With Its Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Aug 26
At €20.22, Is It Time To Put ACEA S.p.A. (BIT:ACE) On Your Watch List?

At €20.22, Is It Time To Put ACEA S.p.A. (BIT:ACE) On Your Watch List?

ACEA S.p.A. ( BIT:ACE ), might not be a large cap stock, but it saw significant share price movement during recent...

Aug 02
A Look At The Fair Value Of ACEA S.p.A. (BIT:ACE)

A Look At The Fair Value Of ACEA S.p.A. (BIT:ACE)

Today we will run through one way of estimating the intrinsic value of ACEA S.p.A. ( BIT:ACE ) by taking the forecast...

Jul 20
Some Investors May Be Worried About ACEA's (BIT:ACE) Returns On Capital

Some Investors May Be Worried About ACEA's (BIT:ACE) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

ACEIT Integrated UtilitiesIT Market
7D0.9%2.2%1.9%
1Y8.0%12.3%39.3%

Return vs Industry: ACE underperformed the Italian Integrated Utilities industry which returned 12.2% over the past year.

Return vs Market: ACE underperformed the Italian Market which returned 36.4% over the past year.

Price Volatility

Is ACE's price volatile compared to industry and market?
ACE volatility
ACE Beta0.93
Industry Beta0.86
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
19099,291Giuseppe Golahttps://www.gruppo.acea.it

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 Services, and Abroad segments. The Environment segment primarily engages in the treatment of waste and associated disposal.

ACEA Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
ACE income statement (TTM)
Revenue€3.45b
Cost of Revenue€2.35b
Gross Profit€1.10b
Expenses€791.34m
Earnings€306.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)1.44
Gross Margin31.84%
Net Profit Margin8.90%
Debt/Equity Ratio220.0%

How did ACE perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

12.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACE (€18.58) is trading above our estimate of fair value (€16.82)

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


Price To Earnings Ratio

PE vs Industry: ACE is good value based on its PE Ratio (12.9x) compared to the European Integrated Utilities industry average (16.1x).

PE vs Market: ACE is good value based on its PE Ratio (12.9x) compared to the Italian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ACE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ACE is overvalued based on its PB Ratio (2x) compared to the XE Integrated Utilities industry average (1.7x).


Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACE's forecast earnings growth (4.3% per year) is above the savings rate (1.8%).

Earnings vs Market: ACE's earnings (4.3% per year) are forecast to grow slower than the Italian market (11.6% per year).

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

Revenue vs Market: ACE's revenue (3.3% per year) is forecast to grow faster than the Italian market (2.1% per year).

High Growth Revenue: ACE's revenue (3.3% 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 (15.5%).


Past Performance

How has ACEA performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACE has high quality earnings.

Growing Profit Margin: ACE's current net profit margins (8.9%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: ACE's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: ACE's earnings growth over the past year (7.9%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: ACE earnings growth over the past year (7.9%) underperformed the Integrated Utilities industry 28.8%.


Return on Equity

High ROE: ACE's Return on Equity (15%) is considered low.


Financial Health

How is ACEA's financial position?


Financial Position Analysis

Short Term Liabilities: ACE's short term assets (€2.7B) exceed its short term liabilities (€2.4B).

Long Term Liabilities: ACE's short term assets (€2.7B) do not cover its long term liabilities (€5.6B).


Debt to Equity History and Analysis

Debt Level: ACE's debt to equity ratio (220%) is considered high.

Reducing Debt: ACE's debt to equity ratio has increased from 174.1% to 220% over the past 5 years.

Debt Coverage: ACE's debt is not well covered by operating cash flow (18.3%).

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


Balance Sheet


Dividend

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

4.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACE's dividend (4.31%) is higher than the bottom 25% of dividend payers in the Italian market (1.03%).

High Dividend: ACE's dividend (4.31%) is in the top 25% of dividend payers in the Italian market (3.49%)


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 (55.5%), 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 (54.2% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Giuseppe Gola (57 yo)

1.42yrs

Tenure

Mr. Giuseppe Gola serves as the Chief Executive Officer and Director 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...


Leadership Team

Experienced Management: ACE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ACE's board of directors are not considered experienced ( 2.9 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 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: €3.949b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:33
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.