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Ascopiave S.p.A. (IT:ASC)
:ASC
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Ascopiave S.p.A. (ASC) AI Stock Analysis

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IT:ASC

Ascopiave S.p.A.

(LSE:ASC)

Rating:77Outperform
Price Target:
€3.50
▲(12.18%Upside)
Ascopiave S.p.A. receives a strong overall score driven by its excellent financial performance characterized by solid revenue growth and cash flow management. The company's valuation is attractive with a fair P/E ratio and high dividend yield. Technical analysis indicates moderate momentum, reflecting a stable stock performance without significant upward signals.
Positive Factors
Asset Acquisition
The acquisition of the gas distribution concessions from A2A would significantly simplify the financial structure of Ascopiave.
Revenue Growth
The company reported double-digit growth at revenue, EBITDA, and net profit level.
Undervaluation
The current share price implies a significant undervaluation to the asset value of the company.
Negative Factors
Discount on RAB
The current share price implies a discount on RAB of around -15%, which is not reasonable given that the main peer’s share price implies a premium to RAB of around 10%.
Dividend Yield
Limited room for upside on fair RAB multiples and not as much tempting dividend yield.
Market Comparison
Ascopiave trades at a premium, considered fair but not as attractive compared to larger players.

Ascopiave S.p.A. (ASC) vs. iShares MSCI Italy ETF (EWI)

Ascopiave S.p.A. Business Overview & Revenue Model

Company DescriptionAscopiave S.p.A. (ASC) is an Italian company primarily involved in the distribution and sale of natural gas. It operates within the energy sector, providing essential natural gas infrastructure and services to residential, commercial, and industrial customers. Ascopiave is a key player in the Italian energy market, with a focus on ensuring efficient, safe, and reliable gas distribution across its service areas.
How the Company Makes MoneyAscopiave S.p.A. generates revenue primarily through the distribution and sale of natural gas. The company owns and operates an extensive gas distribution network, earning income by transporting natural gas through its infrastructure to end-users and charging for this service. Additionally, Ascopiave is involved in the sale of natural gas to consumers, where it earns margins on the gas sold. The company may also engage in partnerships or joint ventures that enhance its distribution capabilities or expand its customer base, contributing to its revenue streams. Regulatory frameworks, tariffs, and agreements with local municipalities also play a significant role in determining its earnings.

Ascopiave S.p.A. Financial Statement Overview

Summary
Ascopiave S.p.A. exhibits strong financial health with consistent revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet reflects moderate leverage and a strong equity position, though the return on equity suggests potential for enhancing shareholder returns.
Income Statement
82
Very Positive
The income statement demonstrates solid profitability with a strong gross profit margin of 77.3% and a net profit margin of 18.2% for the TTM. Revenue growth is healthy at 3.6% from the previous year, indicating stable and consistent revenue expansion. However, EBIT and EBITDA margins have slightly declined compared to historical data, suggesting room for operational efficiency improvements.
Balance Sheet
75
Positive
The balance sheet reflects a solid equity foundation with a debt-to-equity ratio of 0.47, indicating moderate leverage. The equity ratio stands at 57.9%, showcasing a stable financial structure. Return on equity is relatively low at 4.5% for the TTM, suggesting limited profitability in generating shareholder returns compared to the equity base.
Cash Flow
88
Very Positive
Cash flow analysis reveals a robust operating cash flow to net income ratio of 3.76, indicating strong cash generation relative to net earnings. Free cash flow growth rate is impressive, with a significant increase in the TTM compared to the previous year, reflecting improved cash generation capabilities. The free cash flow to net income ratio is 1.98, underscoring efficient conversion of profits into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue204.96M180.79M163.65M134.91M163.90M
Gross Profit148.79M106.57M109.81M104.49M125.34M
EBITDA108.09M100.97M82.30M69.87M66.79M
Net Income35.82M36.18M32.66M45.33M58.70M
Balance Sheet
Total Assets1.45B1.46B1.65B1.37B1.36B
Cash, Cash Equivalents and Short-Term Investments35.00M53.83M77.74M43.45M22.70M
Total Debt425.60M447.77M464.11M393.04M362.69M
Total Liabilities594.53M607.70M761.21M502.05M509.20M
Stockholders Equity847.97M844.75M866.28M868.54M853.90M
Cash Flow
Free Cash Flow20.11M-81.45M11.62M-2.28M-2.27M
Operating Cash Flow101.18M6.13M98.52M42.16M42.16M
Investing Cash Flow-67.60M25.84M-83.28M-91.78M-113.03M
Financing Cash Flow-51.49M-80.02M19.14M4.49M25.74M

Ascopiave S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.12
Price Trends
50DMA
3.07
Positive
100DMA
2.99
Positive
200DMA
2.82
Positive
Market Momentum
MACD
0.03
Negative
RSI
62.93
Neutral
STOCH
75.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ASC, the sentiment is Positive. The current price of 3.12 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 3.07, and above the 200-day MA of 2.82, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 75.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ASC.

Ascopiave S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (72)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€7.19B12.8420.21%5.38%-3.34%8.88%
77
Outperform
€676.14M17.524.51%4.81%13.22%4.89%
75
Outperform
€16.96B13.5116.18%5.74%-16.40%10.90%
75
Outperform
€4.21B11.8313.68%4.80%-2.19%14.21%
72
Outperform
€12.93B47.1211.98%4.57%1.73%7.18%
70
Outperform
€6.80B8.2316.17%4.61%2.73%6.02%
70
Neutral
€3.33B11.798.81%4.94%9.09%16.49%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:ASC
Ascopiave S.p.A.
3.14
0.80
34.30%
IT:SRG
SNAM S.p.A.
5.06
0.93
22.64%
IT:IG
Italgas S.p.A.
7.09
2.68
60.70%
IT:ACE
ACEA SPA
19.79
4.30
27.77%
IT:A2A
A2A SpA
2.18
0.28
14.78%
IT:IRE
Iren S.p.A.
2.59
0.76
41.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025