Italgas S.p.A. (IG) AI Stock Analysis

• Market Cap: €7.09B
• Dividend Yield: 5.51%
• Average Volume (3M): 4.26M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.49
• Revenue Growth: -3.34%
• EPS Growth: 8.88%
• Country: IT
• Employees: 6,500
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 0.20
• Shares Outstanding: 1,014,692,400
• 10 Day Avg. Volume: 4,985,663
• 30 Day Avg. Volume: 4,256,602
• PEG Ratio: 0.93
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.36
• 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: €6.82
• Price Target Upside: -1.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: €8.00 ▲(15.61%Upside)

Italgas S.p.A.'s strong financial performance, particularly in profitability and cash flow, combined with attractive valuation metrics, drive a favorable stock score. While the technical indicators suggest positive momentum, caution is advised due to potential overbought conditions and high leverage.

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

Company Description

Italgas S.p.A. (IG) is a leading gas distribution company in Italy, with a rich history dating back to 1837. It operates primarily in the energy sector, focusing on the distribution and measurement of natural gas. The company serves a vast network of residential, commercial, and industrial customers, ensuring the safe and efficient delivery of natural gas across the country. Italgas is committed to innovation and sustainability, integrating advanced technologies to modernize its infrastructure and improve service quality.

How the Company Makes Money

Italgas S.p.A. makes money primarily through the distribution of natural gas. The company generates revenue by charging fees for the transportation and distribution of gas to various customers, including residential households, businesses, and industrial clients. These fees are regulated and form the bulk of the company's income. Additionally, Italgas invests in infrastructure upgrades and network expansions, which can lead to increased capacity and customer base, further boosting revenue. The company may also engage in strategic partnerships and collaborations to enhance its service offerings and operational efficiency. Regulatory frameworks and tariffs set by the Italian energy authority significantly influence the company's earnings, as they dictate the allowable charges for gas distribution services.

Italgas S.p.A. Financial Statement Overview

Summary

Italgas S.p.A. demonstrates strong profitability and cash flow generation with a high gross profit margin and positive free cash flow growth. However, inconsistent revenue growth and high leverage pose risks to financial stability.

Income Statement

Italgas S.p.A. has demonstrated solid profitability with a strong gross profit margin of 88.83% and a net profit margin of 18.90% for 2024. However, the revenue growth has been inconsistent, showing a decline in 2024 compared to previous years. The EBIT and EBITDA margins remain robust at 30.87% and 53.51%, respectively, indicating efficient operational management despite the revenue dip.

Balance Sheet

The company's balance sheet presents a mixed picture. The debt-to-equity ratio is high at 2.92, reflecting significant leverage. However, the return on equity stands at 19.48%, indicating good profitability for equity holders. The equity ratio is relatively low at 20.53%, suggesting a heavy reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Italgas S.p.A. shows a strong improvement in cash flows, with a positive free cash flow growth rate of 171.28% from 2023 to 2024. The operating cash flow to net income ratio is 2.29, highlighting efficient cash generation from operations relative to net income. The free cash flow to net income ratio is 0.43, indicating a healthy conversion of net income into free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.53B	2.61B	2.18B	2.10B	2.06B
	Gross Profit
2.25B	1.62B	745.46M	721.78M	781.68M
	EBIT
782.15M	1.26B	523.85M	527.34M	542.00M
	EBITDA
1.36B	1.20B	1.12B	1.03B	1.05B
	Net Income Common Stockholders
478.85M	439.57M	407.29M	362.81M	384.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
362.85M	267.19M	451.95M	1.39B	664.14M
	Total Assets
11.97B	11.14B	11.03B	10.15B	9.12B
	Total Debt
7.19B	6.92B	6.55B	6.38B	5.41B
	Net Debt
6.83B	6.67B	6.09B	4.99B	4.74B
	Total Liabilities
9.18B	8.54B	8.64B	8.01B	7.15B
	Stockholders Equity
2.46B	2.28B	2.11B	1.89B	1.74B
Cash Flow		Free Cash Flow
206.05M	-289.23M	-229.06M	20.05M	14.61M
	Operating Cash Flow
1.10B	572.67M	548.17M	839.63M	761.66M
	Investing Cash Flow
-809.13M	-857.60M	-1.28B	-813.74M	-771.63M
	Financing Cash Flow
-136.88M	82.95M	-209.17M	701.84M	411.75M

Italgas S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.92
• 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:IG, the sentiment is Positive. The current price of 6.92 is above the 20-day moving average (MA) of 6.83, above the 50-day MA of 6.48, and above the 200-day MA of 5.41, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IG.

Italgas S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IG	79 Outperform	€7.09B	12.60	20.21%	5.51%	-3.34%	8.88%
ASC	78 Outperform	€651.21M	16.87	4.51%	4.31%	13.22%	4.89%
SRG	75 Outperform	€17.64B	14.01	16.18%	4.42%	-16.40%	10.90%
A2A	75 Outperform	€7.20B	8.71	16.17%	3.78%	2.73%	6.02%
ACE	69 Neutral	€4.55B	13.11	13.68%	4.11%	-2.19%	14.21%
IRE	69 Neutral	€3.47B	12.33	8.81%	4.39%	9.09%	16.49%
Sector *	64 Neutral	$8.51B	10.30	4.25%	5.64%	4.06%	-12.76%