A2A SpA (A2A) AI Stock Analysis

• Market Cap: €8.49B
• Dividend Yield: 4.34%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.67
• Revenue Growth: 6.67%
• EPS Growth: -6.79%
• 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: €3.05
• Price Target Upside: 32.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €2.50 ▲(8.23% Upside)

A2A SpA's overall stock score is driven by its stable financial performance and attractive valuation. The company's low P/E ratio and high dividend yield make it appealing for value and income investors. Technical analysis indicates a positive trend, though cash flow management remains a concern. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, suggesting effective market strategies and demand for services.

Improved Gross Profit Margins

Improved margins reflect better cost management, enhancing profitability and operational efficiency over the long term.

Reduced Leverage

Reduced leverage strengthens financial stability, providing more flexibility for future investments and growth initiatives.

Negative Factors

Negative Free Cash Flow Growth

Negative cash flow growth indicates liquidity challenges, potentially limiting the company's ability to fund operations and investments.

Decline in Net Profit Margin

A declining net profit margin suggests pressure on earnings, which could affect long-term profitability if not addressed.

Cash Flow Management Challenges

Low cash flow conversion highlights potential liquidity issues, necessitating improved cash management to support growth.

A2A SpA Business Overview & Revenue Model

Company Description

A2A SpA (A2A) is an Italian multi-utility company that operates in the energy, water, and environmental sectors. Established in 2008 through the merger of AEM Milano and ASM Brescia, A2A provides a comprehensive range of services including electricity generation and distribution, natural gas supply, waste management, and water services. The company is also involved in the development of sustainable energy solutions, focusing on renewable energy sources and energy efficiency initiatives.

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	13.56B	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: Negative
• Last Price: 2.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.31 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.39, and above the 200-day MA of 2.22, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HER	74 Outperform	€5.79B	11.34	13.77%	3.64%	15.98%	19.01%
A2A	71 Outperform	€8.49B	10.49	15.09%	4.34%	6.67%	-6.79%
ACE	70 Outperform	€4.57B	11.81	14.57%	4.20%	-26.96%	25.00%
ENEL	69 Neutral	€90.93B	14.25	23.22%	4.93%	-3.10%	26.28%
IRE	67 Neutral	€3.26B	10.63	9.51%	4.79%	10.48%	9.06%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

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.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR3.00 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. 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.