A2A SpA (A2A) AI Stock Analysis

• Market Cap: €7.15B
• Dividend Yield: 4.37%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.59
• Revenue Growth: 8.61%
• EPS Growth: -22.69%
• Country: IT
• Employees: 14,777
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 3,132,905,300
• 10 Day Avg. Volume: 7,866,198
• 30 Day Avg. Volume: 7,800,187
• PEG Ratio: 0.23
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 16.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.05
• Price Target Upside: 33.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €2.50 ▲(9.17% Upside)

A2A SpA's overall stock score is driven by strong financial performance, particularly in revenue growth and gross profit margins. However, technical analysis indicates bearish momentum, which could pose short-term risks. The stock's attractive valuation with a low P/E ratio and high dividend yield provides a positive outlook for value investors.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for A2A's services, enhancing its market position and supporting long-term expansion.

Gross Profit Margin Improvement

Improved gross profit margins suggest better cost management and operational efficiency, which can sustain profitability over time.

Debt Management

A lower debt-to-equity ratio reflects improved leverage management, enhancing financial stability and reducing risk.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin suggests increased expenses or operational inefficiencies, which could impact long-term profitability.

Free Cash Flow Challenges

Negative free cash flow growth indicates potential cash management issues, which could constrain future investments and financial flexibility.

Operational Profitability

Declining EBIT and EBITDA margins reflect challenges in maintaining operational profitability, potentially affecting long-term financial health.

A2A SpA Business Overview & Revenue Model

Company Description

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, waste treatment, and wind plants with a total installed capacity of 8.9 GW; and purchases and sells electricity, gas, fuels, and environmental certificates. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting and traffic regulation systems, votive lamps, street lights, and water purification and sewer activities, as well as offers energy efficiency and electric mobility services. Additionally, the company provides telecommunication services, including management of fixed and mobile phone lines, and data transmission lines; management and development of infrastructures to support communications; and implementation and management of video surveillance and access control systems, as well as designs solutions and applications for creating new models of cities and territories. A2A S.p.A. is headquartered in Brescia, Italy.

How the Company Makes Money

A2A generates revenue primarily through its diverse utility services. Key revenue streams include electricity generation and sales, natural gas distribution, and water services. The company earns money by selling electricity to residential, commercial, and industrial customers, as well as through regulated gas supply contracts. A2A's environmental services also contribute significantly to its earnings, as it manages waste collection, treatment, and recycling for municipalities and private clients. Additionally, A2A benefits from government incentives and subsidies aimed at promoting renewable energy and sustainability projects. Strategic partnerships with local governments and other businesses enhance its service offerings and expand its market reach, further bolstering its revenue potential.

A2A SpA Financial Statement Overview

Summary

A2A SpA demonstrates a stable financial position with positive revenue growth and improved gross profit margins. The balance sheet shows reduced leverage, enhancing financial stability. However, cash flow management poses challenges, with negative free cash flow growth. The company should focus on improving cash flow generation to support long-term growth and stability.

Income Statement

A2A SpA shows a stable revenue growth rate of 2.96% in the TTM, indicating a positive trajectory after previous fluctuations. The gross profit margin improved to 17.72% from 12.54% in the last annual report, reflecting better cost management. However, the net profit margin decreased slightly to 5.96% from 6.87%, suggesting some pressure on net earnings. The EBIT and EBITDA margins are healthy at 9.56% and 16.26%, respectively, although slightly lower than the previous year, indicating stable operational efficiency.

Balance Sheet

The debt-to-equity ratio improved to 1.26 in the TTM from 1.34, indicating a reduction in leverage, which is positive for financial stability. Return on equity decreased to 14.66% from 15.87%, showing a slight decline in profitability. The equity ratio remains stable, reflecting a balanced capital structure. Overall, the balance sheet shows moderate financial health with manageable leverage.

Cash Flow

The free cash flow growth rate is negative at -15.89% in the TTM, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is stable at 0.25, suggesting consistent cash generation relative to net income. However, the free cash flow to net income ratio is relatively low at 0.36, highlighting potential cash flow constraints. Overall, cash flow management requires attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.68B	12.57B	14.63B	22.95B	11.35B	6.67B
Gross Profit	2.39B	1.58B	2.90B	2.44B	2.26B	1.98B
EBITDA	2.13B	2.31B	1.85B	1.58B	1.33B	1.10B
Net Income	732.00M	864.00M	659.00M	401.00M	504.00M	364.00M
Balance Sheet
Total Assets	19.59B	19.89B	18.80B	21.37B	18.01B	12.23B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.55B	1.47B	2.60B	973.00M	1.02B
Total Debt	6.57B	7.27B	6.35B	6.89B	5.07B	4.50B
Total Liabilities	13.34B	13.89B	14.00B	16.90B	13.71B	8.11B
Stockholders Equity	5.68B	5.45B	4.24B	3.90B	3.76B	3.54B
Cash Flow
Free Cash Flow	628.00M	408.00M	-336.00M	20.00M	61.00M	-141.00M
Operating Cash Flow	1.78B	1.46B	1.04B	1.26B	1.14B	597.00M
Investing Cash Flow	-2.49B	-2.81B	-1.36B	-1.14B	-1.59B	-802.00M
Financing Cash Flow	51.00M	1.27B	-932.00M	1.20B	40.00M	527.00M

A2A SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.29
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:A2A, the sentiment is Neutral. The current price of 2.29 is below the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.40, and above the 200-day MA of 2.23, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 55.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:A2A.

A2A SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENEL	67 Neutral	€88.39B	13.95	23.22%	5.05%	-3.10%	26.28%
A2A	66 Neutral	€7.15B	9.79	13.23%	4.37%	8.61%	-22.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ACE	64 Neutral	€4.65B	10.09	14.57%	4.33%	-26.96%	25.00%
HER	62 Neutral	€5.83B	11.45	13.77%	3.76%	15.98%	19.01%
IRE	61 Neutral	€3.25B	11.03	9.51%	5.06%	10.48%	9.06%

A2A SpA Corporate Events

A2A S.p.A. Accelerates Ecological Transition with Strong Financial Results and New Ventures

A2A S.p.A. reported solid financial results for the first nine months of 2025, with significant investments in ecological transition and sustainability. The company launched A2A Life Ventures to drive innovation and signed a renewable energy agreement to expand its green energy portfolio. Despite a slight reduction in EBITDA due to hydroelectric production normalization, A2A’s strategic initiatives in renewable energy and open innovation position it as a leader in sustainable finance and ecological transition.

A2A S.p.A. to Review Updated Strategic Plan

A2A S.p.A. has announced that its updated Strategic Plan will be reviewed and potentially approved by its Board of Directors on November 11, 2025. This update is significant as it could influence the company’s future operations and strategic direction, impacting stakeholders and potentially altering its position within the industry.

A2A SpA Pioneers Italy’s First Blue Bond to Boost Water Sustainability

A2A SpA has issued Italy’s first blue bond, raising 155 million euros to finance projects aimed at enhancing and protecting water resources. This initiative strengthens A2A’s role in sustainable finance, aligning with international guidelines and reinforcing its commitment to sustainable water management, which is crucial for stakeholders and the company’s strategic positioning.