A2A SpA (A2A) AI Stock Analysis

• Market Cap: €7.15B
• Dividend Yield: 4.38%
• Average Volume (3M): 9.17M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.73
• Revenue Growth: 2.73%
• EPS Growth: 6.02%
• Country: IT
• Employees: 14,777
• Sector: Utilities
• Sector Strength: 72
• Industry: Diversified Utilities
• EPS (TTM): 0.08
• Shares Outstanding: 3,132,905,300
• 10 Day Avg. Volume: 9,492,951
• 30 Day Avg. Volume: 9,168,566
• PEG Ratio: -0.51
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 192.11
• 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: €2.55
• Price Target Upside: 11.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: €2.50 ▲(9.65%Upside)

A2A SpA's overall stock score is driven primarily by its stable financial performance and attractive valuation. The technical analysis supports a positive trend, but caution is advised due to overbought signals. The lack of earnings call and corporate events data limits additional insights.

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 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 presents a stable financial position with strengths in profitability and cash flow generation, despite challenges in revenue growth and increasing leverage. Continued focus on managing debt and enhancing revenue streams will be critical for future financial health.

Income Statement

A2A SpA's income statement reflects a mixed performance. The gross profit margin for the latest year is approximately 12.5%, indicating moderate profitability. The net profit margin improved to 6.9% from 4.5% the previous year, demonstrating a positive trend in profitability. However, revenue experienced a decline of roughly 13.2% year-over-year, which can be a concern. The EBIT and EBITDA margins of 10.5% and 18.4% respectively show operational efficiency, although there's room for improvement in revenue growth.

Balance Sheet

The balance sheet of A2A SpA shows a debt-to-equity ratio of 1.34, indicating a moderate level of leverage. The equity ratio is 27.4%, suggesting a balanced capital structure with adequate equity financing. Return on equity stands at 15.9%, showing a strong return for shareholders. Despite a solid equity base, the company's increased debt levels over time could pose long-term risks.

Cash Flow

A2A SpA's cash flow statement indicates strong cash generation capabilities, with an operating cash flow to net income ratio of 1.69, reflecting effective cash conversion. The free cash flow improved significantly from negative to positive, indicating better cash management. However, reliance on financing to support cash flow activities remains a consideration.

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: Positive
• Last Price: 2.28
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.28 is below the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.21, and above the 200-day MA of 2.10, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.28 is Neutral, 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
A2A	75 Outperform	€7.15B	8.64	16.17%	4.38%	2.73%	6.02%
Sector *	61 Neutral	C$4.81B	-11.76	-12.21%	4.79%	11.13%	-68.91%
0MHD		€4.33B	12.47	13.68%	4.67%	―	―
0N4J		€9.69B	39.68	2.21%	5.69%	―	―
0NRE		€81.91B	11.55	25.20%	5.33%	―	―
0NVV		€5.95B	11.63	13.57%	3.69%	―	―
0MUN		€3.34B	11.83	8.81%	4.93%	―	―

A2A SpA Corporate Events

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.

A2A S.p.A. Approves 2024 Financials and Strategic Share Plans

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.

A2A S.p.A. Director Purchases Significant Shareholding

Fulvio Roncari, Director of the Circular Economy Business Unit at A2A S.p.A., has made a significant purchase of ordinary shares in the company, totaling 25,000 shares at an aggregated price of €2.0159 per share. This transaction reflects a strategic move within the company, potentially indicating confidence in its market position and future growth prospects.

A2A S.p.A. Publishes 2024 Financial Report and Governance Insights

A2A S.p.A. has released its annual financial report for the year ending December 31, 2024, which includes draft financial statements, consolidated financial statements, and various reports such as the management report and sustainability report. The publication of these documents provides stakeholders with comprehensive insights into the company’s financial health, governance, and remuneration policies, potentially impacting investor confidence and market positioning.