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

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IT:IG

Italgas S.p.A.

(Frankfurt:IG)

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Outperform 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
€8.00
▲(3.90% 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.
Positive Factors
Negative Factors

Italgas S.p.A. (IG) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionItalgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy. It is involved in the transportation of gas through local pipeline networks from the delivery points at the reduction and measurement stations interconnected with the transport networks to the points of final delivery to households, enterprises, etc. The company operated a distribution network of 74,397 kilometers. It also engages in metering activities; and distributes and sells water. The company was founded in 1837 and is based in Milan, Italy.
How the Company Makes MoneyItalgas 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 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
78
Positive
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
72
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.31B2.51B2.61B2.18B2.10B2.06B
Gross Profit2.12B1.72B1.62B745.46M721.78M781.68M
EBITDA1.21B1.36B1.20B1.12B1.03B1.05B
Net Income413.79M478.85M439.57M407.29M362.81M384.63M
Balance Sheet
Total Assets17.86B11.97B11.14B11.03B10.15B9.12B
Cash, Cash Equivalents and Short-Term Investments386.90M362.85M267.19M451.95M1.39B664.14M
Total Debt11.37B7.19B6.92B6.55B6.38B5.41B
Total Liabilities14.05B9.18B8.54B8.64B8.01B7.15B
Stockholders Equity3.48B2.46B2.28B2.11B1.89B1.74B
Cash Flow
Free Cash Flow-293.91M206.05M-289.23M-229.06M20.05M14.61M
Operating Cash Flow896.03M1.10B572.67M548.17M839.63M761.66M
Investing Cash Flow-2.74B-809.13M-857.60M-1.28B-813.74M-771.63M
Financing Cash Flow-274.64M-136.88M82.95M-209.17M701.84M411.75M

Italgas S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.70
Price Trends
50DMA
7.48
Positive
100DMA
7.16
Positive
200DMA
6.27
Positive
Market Momentum
MACD
0.03
Positive
RSI
55.35
Neutral
STOCH
75.38
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 7.7 is above the 20-day moving average (MA) of 7.59, above the 50-day MA of 7.48, and above the 200-day MA of 6.27, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€7.78B13.8420.21%4.99%-3.34%8.88%
73
Outperform
652.30M7.819.38%4.98%9.09%98.81%
71
Outperform
3.32B10.719.21%4.96%13.50%19.36%
70
Outperform
16.91B12.0414.10%5.76%-8.04%30.49%
69
Neutral
6.82B8.1815.87%4.60%2.73%6.02%
63
Neutral
4.17B10.6015.28%4.84%-15.52%19.61%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:IG
Italgas S.p.A.
7.70
2.87
59.45%
GB:0N54
A2A SpA
2.18
0.20
10.10%
GB:0MHD
ACEA SPA
19.60
2.79
16.60%
GB:0DME
Ascopiave S.p.A.
3.06
0.34
12.50%
GB:0MUN
Iren S.p.A.
2.56
0.62
31.96%
GB:0NQP
SNAM S.p.A.
5.05
0.73
16.90%
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: Jun 05, 2025