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

• Market Cap: €708.64M
• Dividend Yield: 4.59%
• Average Volume (3M): 60.64K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.13
• Revenue Growth: 20.11%
• EPS Growth: 75.92%
• Country: IT
• Employees: 446
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.05
• Shares Outstanding: 234,411,580
• 10 Day Avg. Volume: 67,552
• 30 Day Avg. Volume: 60,640
• PEG Ratio: 0.00
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 29.50
• 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: €3.83
• Price Target Upside: 17.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €3.50 ▲(7.03% Upside)

Ascopiave S.p.A. scores well due to strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical analysis indicates bearish momentum, which could pose short-term risks. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitive positioning.

Profitability

High profitability margins reflect efficient operations and strong pricing power, supporting long-term financial stability and shareholder returns.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial flexibility and resilience against economic fluctuations.

Negative Factors

Rising Debt Levels

Rising debt levels can strain cash flow and limit financial flexibility, impacting long-term stability if not addressed.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential challenges in funding operations and investments, which could hinder future growth.

Decline in Gross Profit Margin

A declining gross profit margin may signal rising costs or pricing pressures, potentially affecting profitability if not managed.

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

Company Description

Ascopiave S.p.A. distributes and sells natural gas in Italy. The company holds concessions and direct assignments for the supply of the service in 268 municipalities; and provides services to approximately 775,000 users through a distribution network of approximately 13,000 kilometres (km). It is also involved in the electricity distribution; heat management and co-generation activities, as well as offers integrated urban water management services in 15 municipalities that includes 100,000 inhabitants through a network of 880 km in the Province of Bergamo; and renewable energy sector with 28 hydroelectric plants and wind turbines. The company was founded in 1956 and is headquartered in Pieve di Soligo, Italy. Ascopiave S.p.A. is a subsidiary of Asco Holding S.p.A.

How the Company Makes Money

Ascopiave generates revenue primarily through the distribution of natural gas and electricity to its customer base. The company earns income from regulated tariffs set by authorities for the use of its infrastructure, as well as from the sale of energy to end-users. Key revenue streams include fixed fees for the connection and maintenance of distribution networks, variable fees based on consumption, and additional income from energy management services and solutions. The company may also benefit from partnerships with local municipalities and energy suppliers, which can enhance its market reach and operational efficiency. Factors contributing to its earnings include regulatory frameworks that govern energy pricing, demand for energy services, and the effectiveness of its operational strategies in maintaining and expanding its network infrastructure.

Ascopiave S.p.A. Financial Statement Overview

Summary

Ascopiave S.p.A. demonstrates strong revenue growth and profitability with high margins and a stable balance sheet. However, the decline in free cash flow growth and increasing debt levels warrant attention. Overall, the company is performing well but should focus on improving cash flow generation to sustain its growth trajectory.

Income Statement

Ascopiave S.p.A. shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 70.5%, indicating robust expansion. The company maintains high profitability with a gross profit margin of 87.23% and a net profit margin of 38.86% in the TTM period. EBIT and EBITDA margins are also strong at 50.24% and 74.16%, respectively. However, the gross profit margin has slightly decreased from the previous year, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.74 in the TTM period, indicating moderate leverage. Return on equity is improving, reaching 9.69% in the TTM period, showing enhanced profitability. The equity ratio remains healthy, suggesting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a significant drop of 57.19% in the TTM period. The operating cash flow to net income ratio is 0.51, indicating moderate cash generation efficiency. The free cash flow to net income ratio is 0.28, suggesting that a portion of earnings is being converted into free cash flow. The negative free cash flow growth is a concern and could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.53M	204.96M	180.79M	163.65M	134.91M	163.90M
Gross Profit	227.29M	194.91M	106.57M	109.81M	104.49M	125.34M
EBITDA	171.93M	108.09M	100.97M	82.30M	69.87M	84.93M
Net Income	86.02M	35.82M	36.18M	32.66M	45.33M	58.70M
Balance Sheet
Total Assets	1.76B	1.45B	1.46B	1.65B	1.37B	1.36B
Cash, Cash Equivalents and Short-Term Investments	25.58M	35.00M	53.83M	77.74M	43.45M	22.70M
Total Debt	661.29M	425.60M	447.77M	464.11M	393.04M	362.69M
Total Liabilities	858.83M	594.53M	607.70M	761.21M	502.05M	509.20M
Stockholders Equity	898.05M	847.97M	844.75M	866.28M	868.54M	853.90M
Cash Flow
Free Cash Flow	21.07M	20.11M	-81.45M	11.62M	-2.28M	-2.27M
Operating Cash Flow	111.20M	101.18M	6.13M	98.52M	42.16M	42.16M
Investing Cash Flow	-274.22M	-67.60M	25.84M	-83.28M	-91.78M	-113.03M
Financing Cash Flow	170.88M	-51.49M	-80.02M	19.14M	4.49M	25.74M

Ascopiave S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.27 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.24, and above the 200-day MA of 3.09, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.03 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRG	72 Outperform	€18.83B	13.46	17.62%	5.18%	-8.04%	30.49%
ASC	70 Outperform	€708.64M	8.23	9.91%	4.59%	20.11%	75.92%
IG	67 Neutral	€9.41B	16.97	―	4.11%	-3.34%	8.88%
A2A	66 Neutral	€7.15B	9.79	13.23%	4.37%	8.61%	-22.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ACE	64 Neutral	€4.65B	10.09	14.57%	4.33%	-26.96%	25.00%
IRE	61 Neutral	€3.25B	11.03	9.51%	5.06%	10.48%	9.06%