ACEA SPA (ACE) AI Stock Analysis

• Market Cap: €4.36B
• Dividend Yield: 4.65%
• Average Volume (3M): 97.42K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.33
• Revenue Growth: -15.52%
• EPS Growth: 19.61%
• Country: IT
• Employees: 8,715
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.06
• Shares Outstanding: 212,964,890
• 10 Day Avg. Volume: 109,015
• 30 Day Avg. Volume: 97,415
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €24.00
• Price Target Upside: 17.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: €20.50 ▲(0.39% Upside)

ACEA SPA's overall score is driven by strong valuation metrics, with an attractive dividend yield and reasonable P/E ratio. However, financial performance is hindered by declining revenue and high leverage, while technical analysis indicates a lack of clear momentum.

ACEA SPA Business Overview & Revenue Model

Company Description

ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy. The company operates through Environment, Commercial and Trading, Water, Energy Infrastructure, Engineering and Services, and Abroad segments. The Environment segment primarily engages in the treatment of waste and associated disposal. This segment also manages waste energy facility and composting plants in the Lazio, Umbria, and Tuscany regions; operates plastics recycling plant for sorting and recycling plastic packaging in the Piedmont and Valle d'Aosta regions; and produces energy from waste. The Commercial and Trading segment sells and supplies electrical energy and natural gas. The Water segment provides drinking water distribution services comprising collection, discharge, retail, and wholesale. This segment supplies water to approximately 9 million customers; and manages integrated water service in Rome and Frosinone, as well as in other parts of Lazio, Tuscany, Umbria, Molise, and Campania. The Energy Infrastructure segment runs hydroelectric, photovoltaic, thermoelectric plants in Lazio, Umbria, and Abruzzo; manages public and artistic lighting; and distributes approximately 10 Twh of electricity. The Engineering and Services segment research, designs, constructs, and manages integrated water systems. The Abroad segment manages the water activity in Latin America. ACEA S.p.A. was founded in 1909 and is headquartered in Rome, Italy.

How the Company Makes Money

ACEA generates revenue through multiple streams, primarily from its utility services. The company earns income by charging customers for water supply and wastewater treatment services, which are regulated by local authorities. In waste management, revenue comes from collection, disposal, and recycling services provided to municipalities and businesses. Additionally, ACEA generates income from electricity sales and grid management. The company may also benefit from partnerships with local governments and other entities, which can enhance its service offerings and expand its customer base. Moreover, ACEA invests in renewable energy projects, which not only align with regulatory frameworks aimed at sustainability but also diversify its revenue sources.

ACEA SPA Financial Statement Overview

Summary

ACEA SPA shows strong profitability and operational efficiency with healthy margins. However, declining revenue and high leverage pose risks to financial stability. Cash flow is stable but needs improvement in free cash flow generation.

Income Statement

ACEA SPA's income statement shows a mixed performance. The TTM gross profit margin is strong at 63.85%, indicating efficient cost management. However, the revenue has declined by 13.94% in the TTM, which is a concern. The net profit margin is stable at 7.99%, and the EBIT and EBITDA margins are healthy, reflecting good operational efficiency. Overall, while profitability metrics are solid, the decline in revenue growth is a notable weakness.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.15 in the TTM, indicating significant leverage, which could pose financial risks. Return on equity is decent at 13.97%, showing effective use of equity to generate profits. The equity ratio stands at 20.26%, suggesting moderate financial stability. While profitability is maintained, the high leverage is a potential risk factor.

Cash Flow

Cash flow analysis shows a positive trend with a free cash flow growth rate of 1.56% in the TTM. The operating cash flow to net income ratio is 0.52, indicating reasonable cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.12, suggesting limited free cash flow relative to profits. Overall, cash flow generation is stable but could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.74B	4.27B	4.53B	5.03B	3.84B	3.22B
Gross Profit	2.69B	1.87B	1.68B	2.26B	2.01B	1.80B
EBITDA	1.44B	1.40B	1.28B	1.07B	1.11B	1.00B
Net Income	386.53M	331.62M	293.91M	279.73M	313.31M	284.95M
Balance Sheet
Total Assets	12.48B	12.23B	11.79B	11.34B	10.63B	9.67B
Cash, Cash Equivalents and Short-Term Investments	334.04M	514.51M	362.01M	562.58M	683.12M	642.21M
Total Debt	5.72B	5.65B	5.69B	5.82B	5.21B	4.81B
Total Liabilities	9.57B	9.35B	8.96B	8.58B	8.11B	7.35B
Stockholders Equity	2.53B	2.51B	2.38B	2.29B	2.12B	1.96B
Cash Flow
Free Cash Flow	198.82M	292.90M	-31.77M	-323.60M	-221.75M	-80.23M
Operating Cash Flow	1.67B	1.73B	1.11B	726.70M	759.52M	826.74M
Investing Cash Flow	-1.22B	-1.12B	-1.30B	-862.75M	-1.05B	-1.03B
Financing Cash Flow	-527.86M	-491.95M	-12.11M	8.79M	324.04M	-19.38M

ACEA SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ACE, the sentiment is Positive. The current price of 20.42 is above the 20-day moving average (MA) of 20.13, above the 50-day MA of 19.92, and above the 200-day MA of 19.03, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ACE.

ACEA SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOL	73 Outperform	€4.68B	29.94	15.43%	0.76%	11.37%	10.82%
IRE	71 Outperform	€3.48B	11.33	9.99%	4.73%	13.50%	19.36%
A2A	69 Neutral	€7.32B	8.84	16.17%	4.31%	2.73%	6.02%
HER	68 Neutral	€5.71B	11.20	13.98%	3.84%	16.50%	24.03%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENEL	64 Neutral	€86.73B	13.76	23.70%	5.20%	-7.02%	24.33%
ACE	63 Neutral	€4.36B	11.27	14.47%	4.65%	-15.52%	19.61%

ACEA SPA Corporate Events

Acea S.p.A. Releases Fourth Green Bond Impact Report

Acea S.p.A. has published its fourth Green Bond Allocation & Impact Report for 2022-2024, detailing the allocation of a 700 million Euro green bond issued under its 2021 Green Financing Framework. The report highlights Acea’s commitment to transparency in financing projects that enhance sustainability, including water protection and renewable energy, reflecting its strategic focus on environmental initiatives.

The most recent analyst rating on (IT:ACE) stock is a Hold with a EUR20.50 price target. To see the full list of analyst forecasts on ACEA SPA stock, see the IT:ACE Stock Forecast page.

ACEA SPA Reports Strong 1H2025 Results and Strategic Advancements

ACEA SPA reported strong financial results for the first half of 2025, with significant growth in investments and profitability, highlighting the effectiveness of its industrial strategy. The company is advancing strategic projects in water infrastructure, continuing asset rotation in electricity, enhancing waste management capabilities, and expanding its presence in the gas sector, positioning itself for future growth and competitive strength.

The most recent analyst rating on (IT:ACE) stock is a Buy with a EUR19.00 price target. To see the full list of analyst forecasts on ACEA SPA stock, see the IT:ACE Stock Forecast page.

ACEA Approves Sale of ACEA Energia to Eni Plenitude

ACEA’s Board of Directors has approved a binding offer from Eni Plenitude to purchase ACEA Energia, excluding certain business lines, for a total of 588.5 million euros. This transaction aligns with ACEA’s strategic plan to enhance its infrastructure focus, reduce market exposure, and reinvest in infrastructure development, particularly in Rome’s electricity distribution network.

The most recent analyst rating on (IT:ACE) stock is a Buy with a EUR19.00 price target. To see the full list of analyst forecasts on ACEA SPA stock, see the IT:ACE Stock Forecast page.