BIT:IG

Stock Analysis Report

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Executive Summary

Italgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy.


Snowflake Analysis

Solid track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

IG

0.5%

IT Gas Utilities

1.7%

IT Market


1 Year Return

-16.5%

IG

-25.7%

IT Gas Utilities

-17.3%

IT Market

Return vs Industry: IG exceeded the Italian Gas Utilities industry which returned -25.7% over the past year.

Return vs Market: IG matched the Italian Market which returned -16.9% over the past year.


Shareholder returns

IGIndustryMarket
7 Day-1.4%0.5%1.7%
30 Day-1.8%3.1%2.2%
90 Day-16.9%-22.5%-25.3%
1 Year-12.1%-16.5%-21.9%-25.7%-15.2%-17.3%
3 Year24.9%9.0%-3.2%-16.0%-14.9%-22.5%
5 Yearn/a11.4%-16.7%-20.2%-39.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IG (€4.78) is trading above our estimate of fair value (€3.57)

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


Price To Earnings Ratio

PE vs Industry: IG is good value based on its PE Ratio (9.5x) compared to the Gas Utilities industry average (15.6x).

PE vs Market: IG is good value based on its PE Ratio (9.5x) compared to the Italian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: IG is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: IG is overvalued based on its PB Ratio (2.4x) compared to the XE Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Italgas forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IG's forecast earnings growth (4.7% per year) is above the savings rate (2%).

Earnings vs Market: IG's earnings (4.7% per year) are forecast to grow slower than the Italian market (23.7% per year).

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

Revenue vs Market: IG's revenue (2.5% per year) is forecast to grow slower than the Italian market (4.1% per year).

High Growth Revenue: IG's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IG's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Italgas performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IG has high quality earnings.

Growing Profit Margin: IG's current net profit margins (21.8%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: IG's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: IG's earnings growth over the past year (24.7%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: IG earnings growth over the past year (24.7%) exceeded the Gas Utilities industry -1.1%.


Return on Equity

High ROE: Whilst IG's Return on Equity (22.32%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Italgas's financial position?


Financial Position Analysis

Short Term Liabilities: IG's short term assets (€965.7M) exceed its short term liabilities (€744.6M).

Long Term Liabilities: IG's short term assets (€965.7M) do not cover its long term liabilities (€5.1B).


Debt to Equity History and Analysis

Debt Level: IG's debt to equity ratio (248.1%) is considered high.

Reducing Debt: IG's debt to equity ratio has increased from 69.5% to 248.1% over the past 5 years.

Debt Coverage: IG's debt is well covered by operating cash flow (31.1%).

Interest Coverage: IG's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IG's dividend (5.36%) is higher than the bottom 25% of dividend payers in the Italian market (2.01%).

High Dividend: IG's dividend (5.36%) is low compared to the top 25% of dividend payers in the Italian market (5.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IG has been paying a dividend for less than 10 years.

Growing Dividend: IG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51%), IG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IG's dividends in 3 years are forecast to be covered by earnings (64.4% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Paolo Gallo (58yo)

3.75yrs

Tenure

Mr. Paolo Gallo serves as the Chief Executive Officer of Italgas S.p.A. since August 4, 2016 and also serves as its General Manager. From 2014 to 2016, he was the Chief Executive Officer and Communications ...


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Gallo
CEO, GM & Director3.75yrsno datano data
Antonio Paccioretti
General Manager of Finance & Services3.5yrsno datano data
Anna Scaglia
Head of Investor Relationsno datano datano data
Alessio Minutoli
Senior VP of Legal3.5yrsno datano data
Chiara Ganz
Head of External Relations & Communicationsno datano datano data
Bruno Burigana
Head of Human Resources & Organisationno datano datano data
Nunzio Ferrulli
Head of Public & Regulatory Affairsno datano datano data
Raffaella Marcuccio
Head of Procurement & Material Management3.17yrsno datano data
Salvatore Bilardo
Head of Security3.42yrsno datano data
Pier Dell'orco
Head of Commercial Development2yrsno datano data

3.5yrs

Average Tenure

48yo

Average Age

Experienced Management: IG's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paolo Gallo
CEO, GM & Director3.75yrsno datano data
Yunpeng He
Non-Executive Director3.75yrsno datano data
Andrea Mascetti
Independent Non-Executive Director1.08yrsno datano data
Maurizio Dainelli
Non-Executive Director3.75yrsno datano data
Paola Petrone
Non-Executive Independent Director3.75yrsno datano data
Alberto Dell'Acqua
Chairman1.08yrsno datano data
Giandomenico Magliano
Independent Non-Executive Director1.08yrsno datano data
Veronica Vecchi
Independent Non-Executive Director1.08yrsno datano data
Silvia Stefini
Independent Non-Executive Director1.08yrsno datano data
Pier Pace
Chairman of the Board of Statutory Auditorsno datano datano data

1.1yrs

Average Tenure

54yo

Average Age

Experienced Board: IG's board of directors are not considered experienced ( 1.1 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

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


Key Information

  • Name: Italgas S.p.A.
  • Ticker: IG
  • Exchange: BIT
  • Founded: 1837
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: €3.864b
  • Shares outstanding: 809.14m
  • Website: https://www.italgas.it

Number of Employees


Location

  • Italgas S.p.A.
  • 11 via Carlo Bo
  • Milan
  • Milan
  • 20143
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGBIT (Borsa Italiana)YesNew Ordinary SharesITEURNov 2016
0RK1LSE (London Stock Exchange)YesNew Ordinary SharesGBEURNov 2016
IGMBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURNov 2016
I10DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURNov 2016
IGWBAG (Wiener Boerse AG)YesNew Ordinary SharesATEURNov 2016

Biography

Italgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy. It is involved in the transportation of gas through local pipeline networks from the delivery points at the reduction and measurement stations interconnected with the transport networks to the points of final delivery to households, enterprises, etc. As of December 31, 2019, the company operated a distribution network of 70,502 kilometers that served 1,744 operating municipalities. It also engages in metering activities; and distributes and sells water. The company was founded in 1837 and is based in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 00:12
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
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.