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

• Market Cap: €9.48B
• Dividend Yield: 4.11%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.39
• Revenue Growth: -3.34%
• EPS Growth: 8.88%
• Country: IT
• Employees: 6,500
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.16
• Shares Outstanding: 1,015,518,070
• 10 Day Avg. Volume: 2,528,678
• 30 Day Avg. Volume: 2,483,487
• PEG Ratio: 0.99
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 21.30
• 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: €9.30
• Price Target Upside: 0.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €9.50 ▲(2.37% Upside)

Italgas S.p.A. benefits from strong financial performance and a reasonable valuation. However, technical indicators suggest caution due to overbought conditions. The lack of earnings call data and notable corporate events limits further insights.

Positive Factors

Profitability

High profitability margins indicate efficient cost management and strong pricing power, which can sustain competitive advantages and shareholder returns over the long term.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Italgas to invest in growth opportunities, reduce debt, and return capital to shareholders.

Operational Efficiency

Robust operational margins reflect effective management and operational efficiency, supporting long-term profitability and resilience against market fluctuations.

Negative Factors

Revenue Growth

Inconsistent revenue growth can signal challenges in market expansion or competitive pressures, potentially impacting future earnings and strategic positioning.

High Leverage

High leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to interest rate fluctuations or economic downturns.

Equity Ratio

A low equity ratio indicates heavy reliance on debt financing, which could pose risks to financial stability and increase the cost of capital if not managed properly.

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

Company Description

Italgas S.p.A. (IG) is a leading Italian utility company specializing in the distribution of natural gas. With a significant presence in the Italian energy market, Italgas operates through its extensive network of gas distribution pipelines, serving millions of residential, commercial, and industrial customers. The company is involved in the entire gas distribution process, including the construction, maintenance, and management of infrastructure, as well as the implementation of innovative technologies to enhance energy efficiency and sustainability.

How the Company Makes Money

Italgas generates revenue primarily through the distribution of natural gas to its customers. The company's revenue model is built on regulated tariffs set by the Italian regulatory authority, which ensures stable income from its operations. Key revenue streams include fees charged for the transportation and distribution of gas, as well as investments in infrastructure projects that are often subsidized by government programs or incentives. Additionally, Italgas may benefit from partnerships with energy suppliers and local governments, participating in initiatives aimed at promoting energy efficiency and the transition to renewable energy sources. These collaborations can enhance its service offerings and create new revenue opportunities. The company's consistent focus on innovation and sustainability also positions it well to capitalize on future trends in the energy sector.

Italgas S.p.A. Financial Statement Overview

Summary

Italgas S.p.A. demonstrates strong profitability with high gross and net profit margins, and robust EBIT and EBITDA margins. However, inconsistent revenue growth and high leverage pose potential risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.31B	2.51B	2.61B	2.18B	2.10B	2.06B
Gross Profit	2.12B	1.72B	1.62B	745.46M	721.78M	781.68M
EBITDA	1.21B	1.36B	1.20B	1.12B	1.03B	1.05B
Net Income	413.79M	478.85M	439.57M	407.29M	362.81M	384.63M
Balance Sheet
Total Assets	17.86B	11.97B	11.14B	11.03B	10.15B	9.12B
Cash, Cash Equivalents and Short-Term Investments	386.90M	362.85M	267.19M	451.95M	1.39B	664.14M
Total Debt	11.37B	7.19B	6.92B	6.55B	6.38B	5.41B
Total Liabilities	14.05B	9.18B	8.54B	8.64B	8.01B	7.15B
Stockholders Equity	3.48B	2.46B	2.28B	2.11B	1.89B	1.74B
Cash Flow
Free Cash Flow	-293.91M	206.05M	-289.23M	-229.06M	20.05M	14.61M
Operating Cash Flow	896.03M	1.10B	572.67M	548.17M	839.63M	761.66M
Investing Cash Flow	-2.74B	-809.13M	-857.60M	-1.28B	-813.74M	-771.63M
Financing Cash Flow	-274.64M	-136.88M	82.95M	-209.17M	701.84M	411.75M

Italgas S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.28 is above the 20-day moving average (MA) of 8.81, above the 50-day MA of 8.14, and above the 200-day MA of 6.84, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 80.34 is Negative, neither overbought nor oversold. The STOCH value of 83.71 is Negative, 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
ASC	73 Outperform	€701.06M	8.43	9.67%	4.82%	20.11%	―
SRG	70 Outperform	€18.28B	13.09	17.62%	5.19%	-8.04%	30.49%
ACE	70 Outperform	€4.57B	11.81	14.47%	4.50%	-15.52%	19.61%
IG	69 Neutral	€9.48B	16.84	―	4.11%	-3.34%	8.88%
A2A	68 Neutral	€8.49B	10.49	―	3.67%	7.71%	-6.79%
IRE	67 Neutral	€3.26B	10.63	9.99%	5.03%	13.50%	19.36%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%