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A2A SpA (IT:A2A)
:A2A
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A2A SpA (A2A) AI Stock Analysis

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IT

A2A SpA

(LSE:A2A)

Rating:67Neutral
Price Target:
€2.50
▲(15.21%Upside)
The overall stock score reflects A2A SpA's strong valuation metrics with an attractive P/E ratio and dividend yield. Financial performance is solid, though there is room for improvement in cost and cash flow management. Technical analysis indicates a bearish trend, which tempers the positive valuation and financial performance aspects.

A2A SpA (A2A) vs. iShares MSCI Italy ETF (EWI)

A2A SpA Business Overview & Revenue Model

Company DescriptionA2A 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 MoneyA2A SpA generates revenue through its diversified operations across various sectors. In the energy sector, the company earns income from the production and sale of electricity and gas, leveraging both traditional and renewable energy sources. The environmental sector contributes to revenue through waste management services, including waste collection, treatment, and recycling, which are essential for municipalities and businesses. District heating services provide another revenue stream, involving the production and distribution of heat for residential and industrial use. Additionally, A2A manages water services, encompassing the supply and distribution of water, which further bolsters its earnings. The company's revenue model is supported by strategic partnerships and investments in sustainable technologies, enhancing operational efficiency and expanding its service offerings. A2A's focus on integrating digital solutions and smart technologies also plays a pivotal role in optimizing operations and improving customer engagement, contributing to its financial performance.

A2A SpA Financial Statement Overview

Summary
A2A SpA demonstrates a solid financial position with notable revenue growth and operational efficiency. The balance sheet shows stable leverage and positive equity growth, yet there is room for improvement in cost management and cash flow efficiency.
Income Statement
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.30B12.57B14.49B22.95B11.35B6.67B
Gross Profit1.74B1.58B2.90B2.44B2.26B1.98B
EBITDA2.29B2.31B1.85B1.58B1.33B1.10B
Net Income827.00M864.00M659.00M401.00M504.00M364.00M
Balance Sheet
Total Assets20.33B19.89B18.80B21.37B18.01B12.23B
Cash, Cash Equivalents and Short-Term Investments1.58B1.55B1.47B2.60B973.00M1.02B
Total Debt7.06B7.27B6.35B6.89B5.07B4.50B
Total Liabilities14.07B13.89B14.00B16.90B13.71B8.11B
Stockholders Equity5.70B5.45B4.24B3.90B3.76B3.54B
Cash Flow
Free Cash Flow755.00M408.00M-336.00M20.00M61.00M-141.00M
Operating Cash Flow1.85B1.46B1.04B1.26B1.14B597.00M
Investing Cash Flow-2.91B-2.81B-1.36B-1.14B-1.59B-802.00M
Financing Cash Flow1.23B1.27B-932.00M1.50B412.00M783.00M

A2A SpA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.17
Price Trends
50DMA
2.25
Negative
100DMA
2.17
Positive
200DMA
2.12
Positive
Market Momentum
MACD
-0.02
Positive
RSI
38.50
Neutral
STOCH
14.57
Positive
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 2.17 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.25, and above the 200-day MA of 2.12, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.50 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:A2A.

A2A SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITA2A
67
Neutral
€6.81B8.2316.17%9.01%2.73%6.02%
67
Neutral
$16.78B17.074.47%4.21%4.76%6.06%
€4.20B12.1013.68%9.31%
€9.45B44.302.21%4.37%
€80.44B11.3525.20%8.56%
€5.74B11.2613.57%3.82%
€3.28B11.608.81%5.01%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:A2A
A2A SpA
2.17
0.31
16.51%
GB:0MHD
ACEA SPA
19.76
4.26
27.48%
GB:0N4J
Edison Spa
2.06
0.60
41.10%
GB:0NRE
Enel S.p.A.
7.93
1.56
24.49%
GB:0NVV
HERA S.p.A.
3.94
0.61
18.32%
GB:0MUN
Iren S.p.A.
2.55
0.75
41.67%

A2A SpA Corporate Events

A2A S.p.A. Finalizes Sale of Gas Network Assets to Ascopiave
Jun 30, 2025

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
Jun 3, 2025

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
May 13, 2025

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.

A2A S.p.A. Approves 2024 Financials and Strategic Share Plans
Apr 29, 2025

A2A S.p.A. held its Ordinary Meeting, approving the 2024 financial statements and a dividend distribution of 0.10 Euro per share, payable from May 21, 2025. The meeting also authorized a new shareholding plan and the purchase and disposal of treasury shares, aligning with strategic management and industrial projects, reflecting a focus on enhancing shareholder value and operational flexibility.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025