Alerion CleanPower (ARN) AI Stock Analysis

• Market Cap: €1.02B
• Dividend Yield: 3.23%
• Average Volume (3M): 24.99K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.63
• Revenue Growth: 30.89%
• EPS Growth: 143.25%
• Country: IT
• Employees: 204
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): 0.10
• Shares Outstanding: 54,229,404
• 10 Day Avg. Volume: 21,924
• 30 Day Avg. Volume: 24,993
• 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: €23.00
• Price Target Upside: 21.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Neutral
• Price Target: €22.00 ▲(16.65% Upside)

Alerion CleanPower's strong profitability and reasonable valuation are key strengths. However, concerns about revenue growth consistency, high debt levels, and negative free cash flow weigh on the overall score. Technical indicators show mixed signals, with positive price trends but potential bearish momentum.

Alerion CleanPower Business Overview & Revenue Model

Company Description

Alerion CleanPower (ARN) is a leading renewable energy company based in Italy, primarily focused on the generation of clean energy through wind and solar power. The company operates in the renewable energy sector, specializing in the development, management, and operation of renewable energy projects. Alerion CleanPower is committed to promoting sustainable energy solutions and reducing carbon emissions, providing clean power to various markets across Europe.

How the Company Makes Money

Alerion CleanPower generates revenue primarily through the sale of electricity produced by its wind and solar power facilities. The company earns income by entering into long-term power purchase agreements (PPAs) with utility companies, businesses, and other energy consumers who commit to buying the electricity generated at agreed-upon rates. Additionally, Alerion may benefit from government incentives and subsidies aimed at promoting renewable energy, which can provide a stable revenue stream. The company may also engage in energy trading on the wholesale market, selling excess energy when demand and prices are favorable. Strategic partnerships with other energy firms and investments in new renewable projects further contribute to Alerion's earnings potential.

Alerion CleanPower Financial Statement Overview

Summary

Alerion CleanPower demonstrates strong profitability and operational efficiency, with high margins. However, inconsistent revenue growth and a high debt load could impact financial flexibility. Negative free cash flow raises concerns about future growth funding.

Income Statement

Alerion CleanPower has shown robust profitability with strong gross and net profit margins over the years, indicating efficient cost management and solid business operations. However, recent revenue growth has been inconsistent, which might be a concern for future expansion. The EBIT and EBITDA margins are very healthy, reflecting the company's operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting a significant reliance on debt financing, which could pose risks if market conditions worsen. However, the return on equity is strong, indicating effective use of equity capital. The equity ratio is moderate, suggesting a balanced capital structure but room for improvement.

Cash Flow

The cash flow from operations relative to net income is solid, demonstrating good cash generation capabilities. However, the recent negative free cash flow and its decline raise concerns about the ability to fund future operations and investments without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.49M	240.21M	195.62M	271.05M	148.77M	105.82M
Gross Profit	208.97M	222.69M	181.13M	255.00M	134.11M	90.66M
EBITDA	167.22M	182.31M	142.50M	221.88M	115.40M	72.55M
Net Income	83.39M	95.79M	66.82M	71.04M	48.74M	30.95M
Balance Sheet
Total Assets	1.49B	1.69B	1.43B	1.22B	1.01B	944.26M
Cash, Cash Equivalents and Short-Term Investments	254.15M	515.87M	343.16M	226.61M	123.65M	147.71M
Total Debt	942.47M	927.58M	875.48M	685.00M	605.76M	621.56M
Total Liabilities	1.14B	1.32B	1.11B	919.28M	776.78M	737.26M
Stockholders Equity	342.82M	366.72M	320.84M	298.79M	227.10M	202.53M
Cash Flow
Free Cash Flow	-43.21M	-46.01M	18.72M	129.19M	33.54M	47.75M
Operating Cash Flow	47.02M	38.30M	75.80M	212.83M	94.64M	49.90M
Investing Cash Flow	-90.83M	-77.48M	-96.81M	-96.67M	-76.51M	-77.93M
Financing Cash Flow	-2.79M	211.89M	137.56M	-13.20M	-42.18M	-62.62M

Alerion CleanPower Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.86
• 50DMA: Negative
• 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:ARN, the sentiment is Neutral. The current price of 18.86 is below the 20-day moving average (MA) of 19.06, below the 50-day MA of 19.39, and above the 200-day MA of 16.32, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:ARN.

Alerion CleanPower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARN	70 Neutral	€1.02B	12.20	26.22%	3.23%	30.89%	143.25%
GSP	69 Neutral	285.84M	16.44	5.43%	3.05%	18.10%	17.66%
ERG	67 Neutral	3.13B	22.32	―	4.78%	-3.04%	-39.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%