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ACEA SPA (IT:ACE)
:ACE

ACEA SPA (ACE) AI Stock Analysis

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IT

ACEA SPA

(LSE:ACE)

Rating:69Neutral
Price Target:
€24.00
▲(10.60%Upside)
ACEA SPA demonstrates strong technical momentum, with prices consistently above key moving averages, indicating bullish sentiment. Financial performance is stable but marred by inconsistent growth and cash flow challenges. The valuation is attractive, supported by a reasonable P/E ratio and solid dividend yield.

ACEA SPA (ACE) vs. iShares MSCI Italy ETF (EWI)

ACEA SPA Business Overview & Revenue Model

Company DescriptionACEA 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 MoneyACEA S.p.A. generates revenue through several key streams, primarily from its operations in electricity, water services, and environmental management. In the energy sector, ACEA makes money by generating electricity, which it then distributes and sells to residential, commercial, and industrial customers. The company also provides energy management services and operates in the renewable energy sector, which contributes to its earnings. In the water sector, ACEA earns revenue through the management and distribution of potable water and wastewater treatment services, primarily servicing the Rome area and other regions. Environmental services, including waste treatment and recycling, provide an additional revenue stream, supported by public contracts and private partnerships. ACEA's involvement in public lighting and telecommunications also contributes to its financial performance, with earnings derived from long-term service contracts and infrastructure management.

ACEA SPA Financial Statement Overview

Summary
ACEA SPA's financial performance is characterized by stable operating efficiency and a balanced balance sheet. However, fluctuating revenue, modest net profit margin, and inconsistent free cash flow growth highlight areas of concern.
Income Statement
65
Positive
ACEA SPA has shown fluctuating revenue over recent years, with a decline from 2022 to 2024. The gross profit margin has remained relatively strong, indicating cost efficiency, but the net profit margin is modest. EBIT and EBITDA margins suggest stable operational efficiency, though there's room for improvement in net income growth.
Balance Sheet
70
Positive
The company's balance sheet reveals a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. Return on equity has been consistent, albeit not particularly high, indicating steady earnings relative to shareholder equity. The equity ratio is stable, reflecting a solid asset base supported by equity.
Cash Flow
55
Neutral
Cash flow analysis shows inconsistent free cash flow growth, with periods of negative free cash flow indicating potential challenges in capital expenditure management. Operating cash flow remains robust compared to net income, but free cash flow to net income is weak, suggesting limited cash available to shareholders after investments.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.27B4.53B5.03B3.84B3.22B
Gross Profit
1.87B1.68B2.26B2.01B1.80B
EBIT
702.69M612.33M565.85M581.10M534.98M
EBITDA
1.40B1.28B1.07B1.11B1.00B
Net Income Common Stockholders
331.62M293.91M279.73M313.31M284.95M
Balance SheetCash, Cash Equivalents and Short-Term Investments
514.51M362.01M562.58M683.12M642.21M
Total Assets
12.23B11.79B11.34B10.63B9.67B
Total Debt
5.65B5.69B5.82B5.21B4.81B
Net Debt
5.14B5.33B5.26B4.53B4.17B
Total Liabilities
9.35B8.96B8.58B8.11B7.35B
Stockholders Equity
2.51B2.38B2.29B2.12B1.96B
Cash FlowFree Cash Flow
292.90M-31.77M-323.60M-221.75M-80.23M
Operating Cash Flow
1.73B1.11B726.70M759.52M826.74M
Investing Cash Flow
-1.12B-1.30B-862.75M-1.05B-1.03B
Financing Cash Flow
-491.95M-12.11M8.79M324.04M-19.38M

ACEA SPA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.70
Price Trends
50DMA
20.20
Positive
100DMA
19.04
Positive
200DMA
18.30
Positive
Market Momentum
MACD
0.47
Positive
RSI
60.39
Neutral
STOCH
65.61
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 21.7 is above the 20-day moving average (MA) of 21.29, above the 50-day MA of 20.20, and above the 200-day MA of 18.30, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITACE
69
Neutral
€4.61B13.2913.68%4.05%-2.19%14.21%
64
Neutral
$8.53B10.254.70%4.38%4.14%-13.04%
€7.20B8.7316.17%4.35%
€82.03B11.4825.20%5.32%
€6.42B12.4113.57%3.23%
€3.50B12.248.81%4.38%
€4.31B28.8915.10%0.82%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:ACE
ACEA SPA
22.04
6.04
37.74%
GB:0N54
A2A SpA
2.31
0.47
25.54%
GB:0NRE
Enel S.p.A.
8.01
1.71
27.14%
GB:0NVV
HERA S.p.A.
4.35
1.09
33.44%
GB:0MUN
Iren S.p.A.
2.69
0.89
49.44%
GB:0NJP
SOL SPA
47.55
15.36
47.72%

ACEA SPA Corporate Events

Acea Receives Binding Offer from Eni Plenitude for Acea Energia
Jun 4, 2025

Acea, a company involved in various sectors, has received a binding offer from Eni Plenitude for the entire share capital of its subsidiary, Acea Energia S.p.A. This marks a significant potential change in Acea’s business structure, as the company will evaluate the offer to make informed decisions, possibly impacting its operations and market positioning.

The most recent analyst rating on (IT:ACE) stock is a Buy with a EUR21.50 price target. To see the full list of analyst forecasts on ACEA SPA stock, see the IT:ACE Stock Forecast page.

Moody’s Upgrades ACEA’s Outlook to Positive, Affirms ‘Baa2’ Rating
May 28, 2025

Moody’s has upgraded ACEA’s outlook from ‘stable’ to ‘positive’ while maintaining its ‘Baa2’ rating, reflecting the company’s solid financial profile and diversified portfolio. This change aligns with the recent improvement in the Italian sovereign debt outlook, highlighting ACEA’s strong market position and financial stability.

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 S.p.A. Announces Settlement with Roma Capitale
May 22, 2025

Acea S.p.A. has announced the publication of an information document regarding a significant transaction with Roma Capitale. This agreement formalizes the early termination of their contractual relationship concerning public lighting services, impacting Acea’s operations and potentially its market positioning.

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.

Moody’s Confirms ACEA’s ‘Baa2’ Rating with Stable Outlook
May 15, 2025

Moody’s has confirmed ACEA’s ‘Baa2’ rating with a stable outlook, following the company’s involvement in a new waste-to-energy plant project in Rome. This rating reflects ACEA’s stable financial parameters and the solid regulatory framework of its core activities, with the new project expected to have a modest impact on its credit metrics.

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 Group Releases Interim Management Report for Q1 2025
May 15, 2025

Acea Group has announced the availability of its Interim Management Report as of March 31, 2025. The report, approved by the Board of Directors, is accessible on the company’s website and through authorized storage mechanisms, reflecting the company’s commitment to transparency and providing stakeholders with timely financial information.

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 Ambiente Secures Key Role in Rome’s Waste-to-Energy Project
May 13, 2025

Acea Ambiente, a part of Acea S.p.A., has been involved in a significant transaction related to the energy recovery from non-recyclable waste in Rome. This move, following a tender by Roma Capitale, positions Acea Ambiente as a key player in managing waste-to-energy operations, potentially enhancing its market influence and operational scope in the environmental services sector.

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 S.p.A. Confirms Independence of Board Members
May 5, 2025

Acea S.p.A.’s Board of Directors, chaired by Barbara Marinali, confirmed the independence of Director Ferruccio Resta, appointed on April 28, 2025, according to legal and Corporate Governance Code standards. The Board also verified the independence of all members of the Board of Statutory Auditors, ensuring compliance with legal and governance code requirements, which underscores the company’s commitment to maintaining robust governance practices.

ACEA SpA Approves 2024 Financials and Announces Dividend
Apr 28, 2025

ACEA SpA’s Ordinary Shareholders’ Meeting approved the 2024 financial statements, highlighting a net profit of 332 million Euros and a 12% increase in EBITDA to 1.6 billion Euros. The company also announced a dividend of 0.95 Euros per share and appointed a new Board of Statutory Auditors and a Board Member. The financial results reflect ACEA’s strong positioning and commitment to sustainable infrastructure development, with significant investments in regulated activities. The improved financial structure enables the company to distribute a higher dividend than planned, benefiting shareholders and stakeholders.

Acea’s Shareholder Roma Capitale Proposes Auditor Remuneration Resolution
Apr 14, 2025

Acea, with Roma Capitale as a major shareholder, has announced a draft resolution concerning the remuneration of the Board of Statutory Auditors for an upcoming Shareholders’ Meeting. This proposal, submitted by Roma Capitale, is accessible to the public through various official channels, indicating transparency and stakeholder engagement in the company’s governance processes.

ACEA SPA Releases 2024 Annual Financial Report
Apr 7, 2025

ACEA SPA has released its Annual Financial Report for 2024, detailing the company’s financial performance and corporate governance. The report, which includes draft and consolidated financial statements, is available to the public and will be discussed in the upcoming shareholders’ meeting, indicating transparency and engagement with stakeholders.

ACEA SpA Announces Candidates for Board of Statutory Auditors
Apr 7, 2025

ACEA SpA has announced the lists of candidates for the appointment of the Board of Statutory Auditors ahead of its upcoming Shareholders’ Meeting. The lists, presented by major shareholders including Roma Capitale and Fincal SpA, are available for public viewing on the company’s website and other authorized platforms.

Acea SpA Receives Board Member Proposal from Suez International
Mar 26, 2025

Acea SpA announced that its shareholder, Suez International SAS, has proposed a candidate for the board member position at the upcoming shareholders’ meeting. This proposal is part of the agenda for the meeting scheduled for April 28 and 29, 2025, and the relevant documents are available to the public.

Acea SpA Announces Shareholders’ Meeting Documentation Release
Mar 18, 2025

Acea SpA has announced the publication of the Notice of Call for its Shareholders’ Meeting scheduled for April 28 and 29, 2025. The documentation, including the Board of Directors’ reports on several agenda items, is accessible to the public through various channels, ensuring transparency and compliance with legal requirements.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.