Alerion CleanPower (ARN) AI Stock Analysis

• Market Cap: €1.00B
• Dividend Yield: 3.37%
• Average Volume (3M): 16.83K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.58
• Revenue Growth: 30.89%
• EPS Growth: 143.25%
• Country: IT
• Employees: 204
• Sector: General
• Sector Strength: N/A
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 54,229,404
• 10 Day Avg. Volume: 16,043
• 30 Day Avg. Volume: 16,831
• PEG Ratio: -3.79
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 4.34
• P/FCF Ratio: -9.63
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: €18.50 ▲(1.54% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is held back primarily by weak and volatile cash generation (including recent negative free cash flow) and high leverage, despite strong reported profitability. Technically, the stock is slightly below major moving averages with mixed momentum, and valuation is stretched due to a high P/E, only partly supported by a ~3.3% dividend yield.

Positive Factors

High profitability

Alerion reports sector-leading operating and EBITDA margins (Income Statement score 78; 2024 net profit near 40%). Durable margin strength supports internal reinvestment, healthy returns on capital, and resilience to moderate power-price swings over a 2–6 month horizon.

Positive revenue trend

The company has shown multi-period revenue recovery and positive growth overall. Sustainable top-line expansion supports scale economies, better utilization of fixed assets in wind projects, and a stronger base for future contracted sales or capacity additions.

Growing equity base

An improving equity base and healthy ROE reduce relative solvency risk and provide financial flexibility. Over several months this supports access to capital for project financing, lowers reliance on short-term debt, and enhances creditor confidence for new development.

Negative Factors

High leverage

A debt-to-equity ratio persistently above ~2x raises refinancing and interest-rate sensitivity. For an IPP exposed to variable power prices and production, high leverage amplifies cash-flow volatility risk and constrains strategic flexibility for capex or M&A over the medium term.

Weak/volatile cash flow

Operating cash has not consistently converted reported profits to liquidity; FCF turned negative recently. Persistent weak or volatile cash generation increases reliance on external financing, complicates deleveraging and reduces buffer for weather or production shortfalls.

Top-line volatility

Material revenue swings reduce earnings visibility and make multi-quarter planning harder for an asset-heavy renewable operator. Volatile top-line limits predictability of dividend capacity and debt servicing ability, especially when combined with high leverage and weak FCF.

Alerion CleanPower Business Overview & Revenue Model

Company Description

Alerion Clean Power S.p.A. engages in the production of electricity through wind power in Italy. It has wind power plants located in Krupen, Bulgaria; and Comiolica, Spain. The company is headquartered in Milan, Italy. Alerion Clean Power S.p.A. is a subsidiary of FRI-EL Green Power S.p.A.

How the Company Makes Money

Alerion CleanPower makes money mainly by generating electricity from its renewable energy plants (primarily onshore wind) and selling that electricity. Revenue is therefore largely driven by (1) the volume of energy produced (which depends on installed capacity, wind resource/availability, and operational performance) and (2) the realized price per unit of electricity, which can come from wholesale market sales and/or contracted arrangements where applicable. In addition, like many renewable generators, earnings can be influenced by regulatory frameworks and incentive mechanisms available to renewable production in its operating markets; however, specific incentive schemes or contract structures attributable to Alerion CleanPower are not available in this response and are therefore null. Significant partnerships specifically contributing to earnings: null.

Alerion CleanPower Financial Statement Overview

Summary

Profitability is a clear strength (Income Statement score 78 with high operating/EBITDA margins), but the overall profile is constrained by elevated leverage (Balance Sheet score 56; debt-to-equity consistently above ~2x) and weak/volatile cash conversion (Cash Flow score 42 with negative free cash flow in recent periods).

Income Statement

Alerion CleanPower shows strong profitability for the sector, with consistently high operating and EBITDA profitability in the years provided (e.g., 2024 net profit near 40% with very strong operating profitability). Revenue growth has been positive over most of the period, but the top line is volatile (notably a sharp decline in 2023 followed by recovery in 2024–2025), which reduces earnings visibility. Overall: attractive margins and solid net income generation, offset by uneven growth trajectory.

Balance Sheet

Leverage is the key constraint. Debt levels are high relative to equity (debt-to-equity consistently above ~2x in the annual periods shown), which can amplify returns but increases refinancing and rate-sensitivity risk. Equity has been building over time and returns on equity are healthy, but the capital structure remains debt-heavy for a business exposed to power-price and production variability. Overall: improving scale and equity base, but balance-sheet risk is elevated due to leverage.

Cash Flow

Cash generation is uneven and has weakened recently. Operating cash flow is positive but relatively low versus reported profits in recent years (e.g., 2024 operating cash flow is a small fraction of net income), and free cash flow has swung from strongly positive (2022, 2023) to negative (2024 and 2025), implying higher spending and/or working-capital drag. Overall: profitability is not consistently translating into cash, and negative free cash flow in the most recent periods raises funding and execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	227.57M	240.21M	195.62M	271.05M	148.77M
Gross Profit	0.00	222.69M	181.13M	255.00M	134.11M
EBITDA	189.32M	182.31M	142.50M	221.88M	115.40M
Net Income	93.27M	95.79M	66.82M	71.04M	48.74M
Balance Sheet
Total Assets	1.65B	1.69B	1.43B	1.22B	1.01B
Cash, Cash Equivalents and Short-Term Investments	343.97M	515.87M	343.16M	226.61M	123.65M
Total Debt	1.02B	927.58M	875.48M	685.00M	605.76M
Total Liabilities	1.22B	1.32B	1.11B	919.28M	776.78M
Stockholders Equity	426.02M	366.72M	320.84M	298.79M	227.10M
Cash Flow
Free Cash Flow	-102.63M	-46.01M	18.72M	129.19M	33.54M
Operating Cash Flow	47.33M	38.30M	75.80M	212.83M	94.64M
Investing Cash Flow	-88.80M	-77.48M	-96.81M	-96.67M	-76.51M
Financing Cash Flow	-130.67M	211.89M	137.56M	-13.20M	-42.18M

Alerion CleanPower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 18.22 is below the 20-day moving average (MA) of 18.65, below the 50-day MA of 18.53, and below the 200-day MA of 18.92, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ARN.

Alerion CleanPower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSP	75 Outperform	€304.14M	5.23	7.52%	2.98%	17.30%	18.72%
ERG	69 Neutral	€3.31B	8.84	5.96%	4.61%	-3.04%	-39.96%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ARN	51 Neutral	€1.00B	10.60	26.22%	3.37%	30.89%	143.25%