A2A SpA (A2A) AI Stock Analysis

• Market Cap: €7.30B
• Dividend Yield: 4.23%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.65
• Revenue Growth: 2.73%
• EPS Growth: 6.02%
• Country: IT
• Employees: 14,777
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): N/A
• 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: €2.58
• Price Target Upside: 5.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: €2.50 ▲(2.46% Upside)

A2A SpA's overall stock score reflects its stable financial performance and attractive valuation, despite challenges in cash flow management. The technical indicators suggest strong momentum, but caution is advised due to overbought conditions. The absence of earnings call and corporate events data limits the analysis to these factors.

A2A SpA Business Overview & Revenue Model

Company Description

A2A SpA is an Italian multi-utility company that operates in the energy, water, and waste management sectors. The company provides a range of services including electricity and gas distribution, waste collection and treatment, and water supply and purification. A2A is involved in producing electricity from both conventional and renewable sources, contributing to its diverse portfolio aimed at sustainable development and environmental protection.

How the Company Makes Money

A2A generates revenue through various key streams, primarily from the sale of electricity and gas to residential, commercial, and industrial customers. Additionally, the company earns income from its operations in waste management, including collection, recycling, and disposal services. The water services segment contributes to revenue through billing customers for water supply and wastewater treatment. A2A also benefits from partnerships with local governments and municipalities for public utility services, which provide a stable revenue base. The company's investments in renewable energy sources further enhance its earnings potential by capitalizing on the growing demand for sustainable energy solutions.

A2A SpA Financial Statement Overview

Summary

A2A SpA demonstrates solid financial performance with strengths in revenue growth and operational efficiency. The balance sheet is stable with moderate leverage, but there is room for improvement in cost management and cash flow efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.56B	12.57B	14.63B	22.95B	11.35B	6.67B
Gross Profit	2.40B	1.58B	2.90B	2.44B	2.26B	1.98B
EBITDA	2.21B	2.31B	1.85B	1.58B	1.33B	1.10B
Net Income	809.00M	864.00M	659.00M	401.00M	504.00M	364.00M
Balance Sheet
Total Assets	19.92B	19.89B	18.80B	21.37B	18.01B	12.23B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.55B	1.47B	2.60B	973.00M	1.02B
Total Debt	6.99B	7.27B	6.35B	6.89B	5.07B	4.50B
Total Liabilities	13.81B	13.89B	14.00B	16.90B	13.71B	8.11B
Stockholders Equity	5.55B	5.45B	4.24B	3.90B	3.76B	3.54B
Cash Flow
Free Cash Flow	635.00M	408.00M	-336.00M	20.00M	61.00M	-141.00M
Operating Cash Flow	1.77B	1.46B	1.04B	1.26B	1.14B	597.00M
Investing Cash Flow	-2.50B	-2.81B	-1.36B	-1.14B	-1.59B	-802.00M
Financing Cash Flow	658.00M	1.27B	-932.00M	1.20B	40.00M	527.00M

A2A SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:A2A, the sentiment is Positive. The current price of 2.44 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.20, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 82.66 is Negative, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:A2A.

A2A SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRE	71 Outperform	€3.48B	11.33	9.99%	4.67%	13.50%	19.36%
A2A	71 Outperform	€7.30B	8.79	―	4.23%	2.73%	6.02%
HER	68 Neutral	€5.75B	11.17	13.98%	3.78%	16.50%	24.03%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENEL	64 Neutral	€86.51B	13.73	23.70%	5.22%	-7.02%	24.33%
ACE	63 Neutral	€4.34B	11.23	14.47%	4.41%	-15.52%	19.61%

A2A SpA Corporate Events

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.

The most recent analyst rating on (IT:A2A) stock is a Buy with a EUR2.60 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

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.

The most recent analyst rating on (IT:A2A) stock is a Buy with a EUR2.60 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.