Alerion CleanPower (ARN) AI Stock Analysis

• Market Cap: €1.18B
• Dividend Yield: 5.6%
• Average Volume (3M): 32.63K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.66
• Revenue Growth: 36.33%
• EPS Growth: 44.16%
• Country: IT
• Employees: 204
• Sector: Energy
• Sector Strength: 45
• Industry: Renewable Utilities
• EPS (TTM): 1.46
• Shares Outstanding: 54,229,404
• 10 Day Avg. Volume: 33,631
• 30 Day Avg. Volume: 32,629
• PEG Ratio: N/A
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.03
• 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: 11.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: €24.50 ▲(13.95%Upside)

Alerion CleanPower's strong profitability and attractive valuation are key strengths, supported by robust technical momentum. However, potential concerns arise from its high debt load and overbought conditions indicated by technical analysis, which may limit short-term gains.

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 primarily makes money through the sale of electricity generated from its wind farms. The company enters into power purchase agreements (PPAs) with utilities and other large energy consumers, securing long-term revenue streams. Additionally, Alerion may receive government incentives and subsidies aimed at promoting renewable energy development, further enhancing its financial performance. The company's strategic partnerships and investments in new projects aim to increase its installed capacity, thus boosting electricity generation and revenue in the long term.

Alerion CleanPower Financial Statement Overview

Summary

Alerion CleanPower demonstrates strong profitability and operational efficiency with robust margins. However, inconsistent revenue growth and a high debt load present challenges, alongside negative free cash flow impacting future growth potential.

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	213.50M	146.61M	163.92M	269.72M	149.95M	105.09M
Gross Profit	163.14M	124.85M	144.72M	253.67M	135.29M	89.93M
EBITDA	198.50M	202.60M	161.46M	227.50M	118.22M	77.69M
Net Income	42.69M	95.79M	66.82M	71.04M	48.74M	30.95M
Balance Sheet
Total Assets	1.42B	1.69B	1.43B	1.22B	1.01B	944.26M
Cash, Cash Equivalents and Short-Term Investments	300.54M	515.87M	343.16M	226.61M	123.65M	147.71M
Total Debt	915.72M	1.11B	879.20M	688.12M	606.70M	624.63M
Total Liabilities	1.12B	1.32B	1.11B	919.28M	776.78M	737.26M
Stockholders Equity	293.11M	366.72M	320.84M	298.79M	227.10M	202.53M
Cash Flow
Free Cash Flow	-53.87M	-40.76M	3.15M	128.48M	41.71M	62.39M
Operating Cash Flow	42.16M	58.99M	86.21M	218.61M	116.86M	66.19M
Investing Cash Flow	-150.32M	-70.10M	-93.61M	-86.41M	-72.47M	-75.08M
Financing Cash Flow	199.76M	183.82M	137.56M	-29.24M	-68.44M	-81.75M

Alerion CleanPower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.50
• 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:ARN, the sentiment is Positive. The current price of 21.5 is above the 20-day moving average (MA) of 20.26, above the 50-day MA of 17.53, and above the 200-day MA of 15.47, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.64 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
ARN	75 Outperform	€1.18B	12.19	27.86%	5.60%	36.33%	44.16%
Sector *	58 Neutral	HK$85.24B	3.84	-2.37%	3.16%	-4.67%	-40.97%
0MHC	―	€2.80B	14.65	8.74%	5.31%	―	―
ECK	―	€38.89M	24.78		―	―	―
T9O	―	€209.59M	16.39	5.46%	3.13%	―	―
IB	―	€66.09M	15.72		4.72%	―	―