ACEA SPA (ACE) AI Stock Analysis

• Market Cap: €4.15B
• Dividend Yield: 4.86%
• Average Volume (3M): 100.34K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.37
• Revenue Growth: -15.51%
• EPS Growth: 19.61%
• Country: IT
• Employees: 8,715
• Sector: Utilities
• Sector Strength: 86
• Industry: Diversified Utilities
• EPS (TTM): 1.06
• Shares Outstanding: 212,964,890
• 10 Day Avg. Volume: 93,182
• 30 Day Avg. Volume: 100,343
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 22.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: €21.50 ▲(10.09% Upside)

ACEA SPA's strong valuation metrics, including a low P/E ratio and high dividend yield, significantly enhance its attractiveness. The company's stable financial performance, with consistent profitability and effective cost management, supports its solid position in the utilities sector. However, mixed technical indicators suggest a lack of clear short-term momentum, slightly tempering the overall score.

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 S.p.A. generates revenue through several key streams. In the energy sector, it earns from the generation, distribution, and sale of electricity and gas. The company operates power plants and manages electricity distribution networks, supplying energy to residential, commercial, and industrial customers. In the water sector, ACEA provides integrated water services, earning from the management of water resources, including the supply, distribution, and purification of water. Waste management and environmental services contribute to revenue through the collection, treatment, and disposal of waste, as well as recycling activities. Strategic partnerships and collaborations with other utility companies and government entities further support its revenue streams by expanding operational capacity and service reach.

ACEA SPA Financial Statement Overview

Summary

ACEA SPA shows stable financial performance characteristic of the utilities sector. The income statement reflects steady revenue growth and strong profitability with efficient cost management. The balance sheet is solid, although high leverage poses some risk, typical for the industry. Cash flow is adequate but impacted by capital expenditures, which may affect liquidity.

Income Statement

ACEA SPA's income statement shows relative stability with a slight increase in total revenue for the TTM (Trailing-Twelve-Months) period. The gross profit margin remains strong at approximately 63.9%, indicating efficient cost management. The net profit margin is stable at about 8.0%, suggesting consistent profitability. Revenue growth is modest, reflecting steady operations in the utilities sector. EBIT and EBITDA margins are healthy at 16.6% and 33.5% respectively, displaying robust operational performance.

Balance Sheet

ACEA SPA maintains a solid balance sheet with a debt-to-equity ratio of 2.15, which indicates a high leverage but is typical for the utilities sector. Return on equity (ROE) stands at 13.3%, showcasing effective utilization of shareholder funds. The equity ratio is at 21.3%, reflecting a reasonable proportion of equity financing in the asset base. Overall, the balance sheet exhibits stability with a potential risk from high leverage.

Cash Flow

The cash flow statement reveals a decrease in free cash flow compared to the previous period, highlighting potential challenges in cash generation. The operating cash flow to net income ratio is robust at 4.75, indicating strong cash conversion. However, the free cash flow to net income ratio is relatively low at 0.56 due to significant capital expenditures, which could impact future liquidity.

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

ACEA SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.53
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 19.53 is below the 20-day moving average (MA) of 19.71, below the 50-day MA of 20.11, and above the 200-day MA of 18.32, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:ACE.

ACEA SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACE	71 Outperform	€4.15B	10.74	14.47%	4.86%	-15.51%	19.61%
Sector *	63 Neutral	HK$29.34B	8.52	5.80%	4.90%	-3.44%	2.46%
0N54	―	€6.68B	8.08	16.17%	―	―	―
0NRE	―	€79.04B	12.54	20.53%	―	―	―
0NVV	―	€5.40B	10.58	13.98%	―	―	―
0MUN	―	€3.24B	10.58	9.99%	―	―	―
0NJP	―	€4.38B	29.98	15.10%	―	―	―

ACEA SPA Corporate Events

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.

ACEA Reviews ENI Plenitude’s Offer for ACEA Energia Amid Strategic Growth Initiatives

ACEA’s Board of Directors is reviewing a binding offer from ENI Plenitude for ACEA Energia S.p.A., as part of its strategic asset rationalization plan. This move aligns with ACEA’s ‘Green Diligent Growth’ plan, which has seen the company achieve significant industrial and geographical growth, including major infrastructure projects and territorial expansions. The company is also focusing on protecting employment levels and strengthening its competitive position in the national market.

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 Receives Binding Offer from Eni Plenitude for Acea Energia

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

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

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

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

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

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.