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Italgas S.p.A.
(IG)
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Rating:63Neutral
Price Target:
€11.50
▲(14.31% Upside)
Action:Reiterated
Date:04/01/26
The score is driven primarily by solid 2025 profitability and improving revenue, but it is held back by high leverage and inconsistent free cash flow generation. Technical indicators add a modest near-term headwind, while valuation is supportive due to a moderate P/E and a ~3.8% dividend yield.
Positive Factors
Regulated business model
Operating under regulated concessions with tariffs and allowed returns provides durable, predictable cash flows and revenue visibility. This framework supports long-term capex recovery and reduces pure market demand risk, making core earnings more stable over multi-year horizons.
Negative Factors
Structurally elevated leverage
High debt relative to equity reduces financial flexibility and increases sensitivity to rising interest rates or funding stress. For a capital-intensive utility, elevated leverage constrains the ability to fund organic capex, pursue strategic opportunities, or maintain distributions without additional financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated business model
Operating under regulated concessions with tariffs and allowed returns provides durable, predictable cash flows and revenue visibility. This framework supports long-term capex recovery and reduces pure market demand risk, making core earnings more stable over multi-year horizons.
Read all positive factors
Italgas S.p.A. (IG) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€9.09B
Dividend Yield4.83%
Average Volume (3M)2.48M
Price to Earnings (P/E)19.9
Beta (1Y)0.35
Revenue GrowthN/A
EPS GrowthN/A
CountryIT
Employees6,500
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.83
Shares Outstanding1,016,523,100
10 Day Avg. Volume2,528,678
30 Day Avg. Volume2,483,487
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)2.53
Price to Sales (P/S)2.76
P/FCF Ratio17.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€10.82Price Target Upside7.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.74
Revenue Forecast (FY)€2.79B
Italgas S.p.A. Business Overview & Revenue Model
Company Description
Italgas S.p.A. and its affiliated entities specialize in the distribution of natural gas across Italy. Their core operations involve the transportation of gas via local pipeline infrastructure, extending from designated delivery points—reduction a...
How the Company Makes Money
Italgas makes money mainly through the regulated operation of natural gas distribution networks. Its core revenues are derived from tariffs/allowed revenues set under the gas distribution regulatory framework, which remunerate the company for (i) ...
Italgas S.p.A. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 3.51B | 2.51B | 2.61B | 2.18B | 2.10B |
| Gross Profit | 1.55B | 1.53B | 1.72B | 1.62B | 745.46M | 721.78M |
| EBITDA | 2.45B | 1.86B | 1.36B | 1.20B | 1.12B | 1.02B |
| Net Income | 889.29M | 672.30M | 478.85M | 439.57M | 407.29M | 362.81M |
Balance Sheet | ||||||
| Total Assets | 17.92B | 18.87B | 11.97B | 11.14B | 11.03B | 10.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 491.38M | 362.85M | 267.19M | 451.95M | 1.39B |
| Total Debt | 12.11B | 11.42B | 7.19B | 6.92B | 6.55B | 6.38B |
| Total Liabilities | 13.80B | 14.70B | 9.18B | 8.54B | 8.64B | 8.01B |
| Stockholders Equity | 3.77B | 3.82B | 2.46B | 2.28B | 2.11B | 1.89B |
Cash Flow | ||||||
| Free Cash Flow | 736.36M | 537.76M | 206.05M | -289.23M | -229.06M | 20.05M |
| Operating Cash Flow | 2.23B | 1.63B | 1.10B | 572.67M | 548.17M | 839.63M |
| Investing Cash Flow | -1.33B | -3.17B | -809.13M | -857.60M | -1.28B | -813.74M |
| Financing Cash Flow | 2.15B | 1.67B | -136.88M | 82.95M | -209.17M | 701.84M |
Italgas S.p.A. Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €582.95M | 6.82 | 9.41% | 10.85% | 33.51% | ― | |
68 Neutral | €19.74B | 12.80 | 9.40% | 3.36% | 8.61% | -17.99% | |
67 Neutral | €3.24B | 11.09 | 8.86% | 5.36% | -8.15% | -2.93% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | €9.09B | 19.88 | 18.43% | 4.30% | ― | ― | |
58 Neutral | €5.55B | 11.85 | 11.63% | 4.08% | -11.37% | -8.40% |
* Utilities Sector Average
IT:IG
Italgas S.p.A.
8.95
1.91
27.15%
IT:ASC
Ascopiave S.p.A.
2.69
-0.28
-9.37%
IT:EDNR
Edison Spa
1.91
-0.18
-8.63%
IT:HER
HERA S.p.A.
3.79
0.19
5.36%
IT:IRE
Iren S.p.A.
2.52
0.10
4.21%
IT:SRG
SNAM S.p.A.
5.89
1.01
20.58%
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.