ACEA SPA (ACE) AI Stock Analysis

• Market Cap: €4.60B
• Dividend Yield: 4.35%
• Average Volume (3M): 98.34K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.23
• Revenue Growth: -26.96%
• EPS Growth: 25.00%
• Country: IT
• Employees: 8,715
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.89
• Shares Outstanding: 212,964,890
• 10 Day Avg. Volume: 102,284
• 30 Day Avg. Volume: 98,337
• PEG Ratio: 0.92
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 13.56
• 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: €26.50
• Price Target Upside: 21.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €23.50 ▲(7.70% Upside)

ACEA SPA's overall stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which are attractive to investors. However, financial performance is mixed due to declining revenue growth and high leverage, and technical indicators suggest caution in the short term.

Positive Factors

Cash Generation

The significant growth in free cash flow indicates improved cash generation capabilities, enhancing financial flexibility and enabling strategic investments.

Profitability

Strong margins reflect effective cost management and profitability, supporting sustainable operations and potential for reinvestment in growth initiatives.

Operational Efficiency

High EBIT and EBITDA margins demonstrate operational efficiency, ensuring the company can maintain profitability even amid revenue challenges.

Negative Factors

Revenue Decline

The decline in revenue growth suggests challenges in maintaining sales momentum, potentially impacting long-term growth prospects if not addressed.

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in new opportunities and increasing vulnerability to economic downturns.

Revenue Growth Challenges

The combination of declining revenue growth and high leverage could impact future financial stability, necessitating strategic adjustments to sustain growth.

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, including the sale of electricity and gas to residential, commercial, and industrial customers. The company also earns income from its waste management services, which encompass collection, treatment, and disposal of waste materials. Additionally, ACEA invests in renewable energy projects, benefiting from government incentives and subsidies aimed at promoting green energy. Significant partnerships with local governments and private sector companies further enhance its operational capabilities and revenue opportunities, particularly in public utility contracts and infrastructure development projects.

ACEA SPA Financial Statement Overview

Summary

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

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	3.20B	4.27B	4.53B	5.03B	3.84B	3.22B
Gross Profit	2.75B	1.87B	1.68B	2.26B	2.01B	1.80B
EBITDA	1.46B	1.40B	1.28B	1.18B	1.13B	1.04B
Net Income	461.84M	331.62M	293.91M	279.73M	313.31M	284.95M
Balance Sheet
Total Assets	12.75B	12.23B	11.79B	11.34B	10.63B	9.67B
Cash, Cash Equivalents and Short-Term Investments	673.37M	514.51M	362.01M	562.58M	683.12M	642.21M
Total Debt	5.48B	5.65B	5.69B	5.82B	5.21B	4.81B
Total Liabilities	9.65B	9.35B	8.96B	8.58B	8.11B	7.35B
Stockholders Equity	2.71B	2.51B	2.38B	2.29B	2.12B	1.96B
Cash Flow
Free Cash Flow	391.55M	292.90M	-31.77M	-323.60M	-221.75M	-80.23M
Operating Cash Flow	1.80B	1.73B	1.11B	726.70M	759.52M	826.74M
Investing Cash Flow	-1.25B	-1.12B	-1.30B	-862.75M	-1.05B	-1.03B
Financing Cash Flow	-342.45M	-491.95M	-12.11M	8.79M	324.04M	-19.38M

ACEA SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.82
• 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:ACE, the sentiment is Positive. The current price of 21.82 is below the 20-day moving average (MA) of 22.22, above the 50-day MA of 21.65, and above the 200-day MA of 20.06, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 22.25 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	€4.34B	27.74	15.43%	0.82%	11.37%	10.82%
ENEL	67 Neutral	€87.56B	13.72	23.22%	5.13%	-3.10%	26.28%
A2A	66 Neutral	€7.06B	9.65	13.23%	4.41%	8.61%	-22.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ACE	64 Neutral	€4.60B	9.97	14.57%	4.35%	-26.96%	25.00%
HER	62 Neutral	€5.81B	11.39	13.77%	3.78%	15.98%	19.01%
IRE	61 Neutral	€3.21B	10.89	9.51%	5.07%	10.48%	9.06%

ACEA SPA Corporate Events

Plenitude Acquires ACEA Energia to Expand European Customer Base

Plenitude has signed a binding agreement to acquire ACEA Energia from ACEA S.p.A., which includes a 50% stake in Umbria Energy S.p.A., for up to 587 million euros. This acquisition will expand Plenitude’s customer base in Italy, helping it exceed 11 million customers in Europe and achieve its 2028 target two years early. For ACEA, the deal aligns with its strategy to focus on infrastructure and regulated businesses, allowing it to reinvest in innovation and sustainability.

Moody’s Upgrades ACEA’s Rating to ‘Baa1’ with Stable Outlook

Moody’s has upgraded ACEA’s credit rating from ‘Baa2’ to ‘Baa1’, reflecting the company’s solid financial profile and the positive dynamics of Italian sovereign debt. The outlook has been adjusted from ‘positive’ to ‘stable’, indicating a steady financial position and predictable earnings due to ACEA’s diversified business mix and regulated activities.

ACEA SPA Reports Strong Growth, Revises 2025 EBITDA Guidance Upwards

ACEA SPA has reported strong financial results for the first nine months of 2025, leading to an upward revision of its EBITDA guidance for the year. The company achieved a significant increase in net profit and investments, driven by its focus on regulated activities and strategic projects, positioning itself as a robust player in the infrastructure sector.