A2A SpA (A2A) AI Stock Analysis

• Market Cap: €6.68B
• Dividend Yield: 4.69%
• Average Volume (3M): 7.45M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.71
• Revenue Growth: 2.73%
• EPS Growth: 6.02%
• Country: IT
• Employees: 14,777
• Sector: Utilities
• Sector Strength: 88
• Industry: Diversified Utilities
• EPS (TTM): N/A
• Shares Outstanding: 3,132,905,300
• 10 Day Avg. Volume: 8,384,638
• 30 Day Avg. Volume: 7,453,272
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.52
• Price Target Upside: 18.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: €2.50 ▲(17.37% Upside)

A2A SpA's overall stock score is driven by its solid financial performance and attractive valuation, which are slightly offset by mixed technical indicators. The company's strong dividend yield and low P/E ratio make it appealing for value investors, although attention should be given to enhancing profitability and optimizing capital allocation.

A2A SpA Business Overview & Revenue Model

Company Description

A2A SpA (A2A) is a leading Italian multi-utility company, operating primarily in the energy, environment, heat, and networks sectors. The company is engaged in the generation, distribution, and sale of electricity and gas, as well as in waste management and the provision of integrated water services. A2A's core products and services include renewable energy solutions, energy efficiency initiatives, and sustainable waste management practices, positioning itself as a key player in Italy's transition towards sustainability and green energy.

How the Company Makes Money

A2A makes money through a diversified revenue model centered around its primary business sectors. In the energy sector, the company generates revenue from the production and sale of electricity and gas, leveraging both traditional and renewable energy sources. The environment sector contributes to revenues through waste management services, including collection, treatment, and disposal of waste, as well as recycling activities. In the networks sector, A2A earns from the distribution of electricity and gas, benefiting from regulated tariffs. Additionally, the company's heat sector generates income through district heating services. Strategic partnerships with municipalities and industrial enterprises, alongside investments in technological innovation and infrastructure, play a significant role in enhancing A2A's earnings and expanding its service offerings.

A2A SpA Financial Statement Overview

Summary

A2A SpA demonstrates solid financial health with strengths in revenue growth and operational efficiency. The balance sheet shows controlled leverage with a debt-to-equity ratio of 1.24, and ROE at 14.5% is decent but could improve. Cash flows are strong, with a notable increase in free cash flow, though efficiency can be enhanced.

Income Statement

A2A SpA has shown commendable recovery with a TTM revenue of €13.3 billion, marking a moderate increase from the previous year. Gross profit margin stands at 13.1%, while net profit margin is 6.2%. The company maintains a healthy EBITDA margin of 17.2%, indicating good operational efficiency. However, there is a slight decline in net income compared to the prior year, suggesting potential areas for improving cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.24, indicating moderate leverage. The equity ratio is 28.0%, showing a balanced approach to financing with a substantial portion of assets funded by equity. Return on Equity (ROE) is 14.5%, which is solid but could be improved. The company's increase in stockholders' equity is a positive sign of financial health.

Cash Flow

A2A SpA's cash flow statement reveals a strong operating cash flow to net income ratio of 2.24, reflecting robust cash generation from operations. Free cash flow has significantly improved to €755 million from €408 million the previous year, reflecting better capital efficiency. However, the free cash flow to net income ratio is less than ideal at 0.91, suggesting room for further improvement in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.57B	14.49B	22.95B	11.35B	6.67B
Gross Profit	1.58B	2.90B	2.44B	2.26B	1.98B
EBITDA	2.31B	1.85B	1.58B	1.33B	1.10B
Net Income	864.00M	659.00M	401.00M	504.00M	364.00M
Balance Sheet
Total Assets	19.89B	18.80B	21.37B	18.01B	12.23B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.47B	2.60B	973.00M	1.02B
Total Debt	7.27B	6.35B	6.89B	5.07B	4.50B
Total Liabilities	13.89B	14.00B	16.90B	13.71B	8.11B
Stockholders Equity	5.45B	4.24B	3.90B	3.76B	3.54B
Cash Flow
Free Cash Flow	408.00M	-336.00M	20.00M	61.00M	-141.00M
Operating Cash Flow	1.46B	1.04B	1.26B	1.14B	597.00M
Investing Cash Flow	-2.81B	-1.36B	-1.14B	-1.59B	-802.00M
Financing Cash Flow	1.27B	-932.00M	1.50B	412.00M	783.00M

A2A SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.24, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 42.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:A2A.

A2A SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENEL	76 Outperform	€79.04B	12.54	20.53%	5.69%	-8.26%	24.33%
IRE	73 Outperform	€3.32B	10.80	9.99%	5.08%	13.50%	19.36%
Sector *	71 Outperform	€14.17B	47.28	13.35%	4.73%	0.08%	15.76%
ACE	71 Outperform	€4.15B	10.74	14.47%	4.83%	-15.51%	19.61%
A2A	68 Neutral	€6.68B	8.08	16.17%	4.69%	2.73%	6.02%
HER	67 Neutral	€5.51B	10.80	13.98%	4.06%	16.50%	23.92%

A2A SpA Corporate Events

A2A S.p.A. Finalizes Sale of Gas Network Assets to Ascopiave

A2A S.p.A., along with its subsidiaries Unareti S.p.A. and LD Reti S.r.l., has completed the sale of its gas network assets to Ascopiave S.p.A. The transaction involves the transfer of 100% of the shares of AP RETI GAS North S.r.l., which manages approximately 490,000 gas distribution points in several Italian provinces. The deal, valued at 430 million euros, will be effective from July 1, 2025, and reflects the valuation as of December 31, 2023. This strategic move is expected to impact A2A’s operations by streamlining its asset portfolio and potentially enhancing its market positioning.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR2.50 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

A2A S.p.A. Launches Strategic Share Buyback Program

A2A S.p.A. has initiated a share buyback program, approved by its shareholders, to purchase its own ordinary shares. This program is designed to support the ‘A2A LIFE Sharing’ plan for 2025-2027, manage investments and liquidity, and facilitate industrial projects aligned with the company’s strategic goals. The program allows for the purchase of up to 313,290,527 shares, valued at a maximum of 10 million euros, and will be executed with the assistance of an independent financial intermediary. The initiative is expected to enhance A2A’s operational flexibility and strategic positioning in the market.

The most recent analyst rating on (IT:A2A) stock is a Buy with a EUR2.20 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

A2A Reports Solid Q1 2025 Results with Increased Investments in Ecological Transition

A2A S.p.A. reported solid financial performance for the first quarter of 2025, with a notable increase in investments, particularly in the ecological transition and sustainable finance. The integration of the Duereti company contributed to a rise in regulated activities’ impact on EBITDA, enhancing stability and future visibility. Despite a slight reduction in operating margins due to lower hydroelectric production, the company maintained resilience through increased production from combined cycle plants. The establishment of a new Circular Economy Business Unit and the inauguration of the Calvisano treatment plant highlight A2A’s commitment to sustainability and compliance with EU regulations.

The most recent analyst rating on (IT:A2A) stock is a Buy with a EUR2.20 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.