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Iren S.p.A. (IT:IRE)
:IRE
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Iren S.p.A. (IRE) AI Stock Analysis

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IT:IRE

Iren S.p.A.

(LSE:IRE)

Rating:70Neutral
Price Target:
€2.50
▼(-3.47%Downside)
Iren S.p.A. is supported by strong financial performance and attractive valuation, with a reasonable P/E ratio and high dividend yield. However, technical analysis indicates some short-term bearish momentum, which tempers the overall score.

Iren S.p.A. (IRE) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionIren S.p.A. is an Italian multi-utility company operating primarily in the energy, integrated water, environmental, and technological services sectors. The company provides electricity and gas distribution, district heating, and energy services, along with managing the integrated water cycle and waste collection and treatment services. It serves millions of residential and business customers across Italy, contributing to sustainable urban development and environmental protection.
How the Company Makes MoneyIren S.p.A. generates revenue through multiple streams associated with its diverse operations. In the energy sector, the company earns money by distributing electricity and gas to residential, commercial, and industrial customers. It also provides district heating services and energy efficiency solutions. In the integrated water sector, Iren makes money by managing and maintaining water supply and sewage systems, charging customers for water consumption and wastewater treatment. The environmental sector contributes to Iren's revenue by offering waste collection, recycling, and disposal services. Additionally, technological services, including telecommunications and infrastructure management, further support the company's revenue generation. Strategic partnerships with local municipalities and adherence to regulatory frameworks also play a crucial role in Iren's financial performance.

Iren S.p.A. Financial Statement Overview

Summary
Iren S.p.A. shows strong financial performance with robust revenue growth and profitability. The company displays efficient cost management and cash flow generation, though there is room for improvement in net profit margins and leverage levels.
Income Statement
78
Positive
Iren S.p.A. demonstrates strong profitability with TTM gross and net profit margins at approximately 38.5% and 4.4%, respectively. The company has shown a healthy revenue growth rate of 8.3% over the previous annual period, indicating robust operational performance. EBITDA and EBIT margins are also solid at 19.6% and 8.2% TTM, reflecting efficient cost management. However, there is room for improvement in net profit margins to optimize overall profitability.
Balance Sheet
72
Positive
The balance sheet of Iren S.p.A. is stable with a debt-to-equity ratio of 1.56, indicating moderate leverage. The company enjoys a return on equity of 8.2% TTM, suggesting efficient use of equity capital. The equity ratio stands at 26.2%, showing a reasonable proportion of equity financing. While the leverage is manageable, further reduction can enhance financial stability and lower risks.
Cash Flow
74
Positive
Cash flow metrics indicate a robust cash flow management with a free cash flow growth rate of 72.4% TTM, highlighting significant improvement in cash generation. The operating cash flow to net income ratio is favorable at 4.6 TTM, suggesting strong cash conversion. Additionally, the free cash flow to net income ratio of 1.55 TTM reflects adequate free cash flow generation relative to net earnings, supporting future investment and debt repayment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.45B5.95B6.41B7.75B4.91B3.68B
Gross Profit2.48B1.92B1.86B1.56B1.54B1.40B
EBITDA1.26B1.23B1.09B949.36M912.96M838.82M
Net Income281.92M268.47M254.84M226.02M303.17M239.17M
Balance Sheet
Total Assets13.12B12.21B11.69B11.72B10.31B9.55B
Cash, Cash Equivalents and Short-Term Investments1.23B326.57M436.13M788.40M606.89M890.17M
Total Debt5.35B614.15M653.91M106.62M3.94B3.98B
Total Liabilities9.42B8.87B8.44B8.53B7.36B6.79B
Stockholders Equity3.44B2.88B2.81B2.75B2.57B2.39B
Cash Flow
Free Cash Flow436.04M252.96M-186.31M185.49M192.70M136.36M
Operating Cash Flow1.29B1.08B680.29M1.08B950.47M821.51M
Investing Cash Flow-919.28M-901.04M-886.62M-1.14B-811.79M-791.22M
Financing Cash Flow-535.40M-291.70M-145.95M240.56M-421.96M514.00M

Iren S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.59
Price Trends
50DMA
2.55
Positive
100DMA
2.38
Positive
200DMA
2.14
Positive
Market Momentum
MACD
<0.01
Negative
RSI
60.17
Neutral
STOCH
86.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IRE, the sentiment is Positive. The current price of 2.59 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.55, and above the 200-day MA of 2.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IRE.

Iren S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€7.22B12.8420.21%5.36%-3.34%8.88%
76
Outperform
€79.40B11.2025.20%5.72%-7.85%63.65%
70
Outperform
€4.11B11.8313.68%4.92%-2.19%14.21%
70
Outperform
€6.93B8.3816.17%4.61%2.73%6.02%
70
Neutral
€3.32B11.798.81%4.95%9.09%16.49%
69
Neutral
€5.69B11.1313.57%3.85%10.92%29.39%
60
Neutral
C$5.15B-24.33-19.26%3.75%12.02%-69.08%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:IRE
Iren S.p.A.
2.59
0.75
41.14%
IT:HER
HERA S.p.A.
3.89
0.54
16.14%
IT:IG
Italgas S.p.A.
7.12
2.70
61.26%
IT:ACE
ACEA SPA
19.32
3.83
24.73%
IT:ENEL
Enel S.p.A.
7.73
1.48
23.72%
IT:A2A
A2A SpA
2.17
0.28
14.62%

Iren S.p.A. Corporate Events

Iren S.p.A. Completes Full Acquisition of Egea Holding
May 22, 2025

Iren S.p.A. has acquired full control of Egea Holding by purchasing the remaining 47.23% stake from MidCo 2024 Srl for a total of 74.8 million euros, with an additional 4 million euros for Capo dell’Acqua’s shares. This acquisition will enable Iren to rapidly implement development investments and integrate new growth projects, particularly in renewable energy, enhancing its market position and operational capabilities.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR2.30 price target. To see the full list of analyst forecasts on Iren S.p.A. stock, see the IT:IRE Stock Forecast page.

Iren S.p.A. Publishes Shareholders’ Meeting Minutes
May 19, 2025

Iren S.p.A. announced the availability of the minutes from its Ordinary Shareholders’ Meeting held on April 24, 2025. The documents are accessible to the public at various locations, including the company’s website and authorized storage mechanisms, ensuring transparency and compliance with financial regulations.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR2.30 price target. To see the full list of analyst forecasts on Iren S.p.A. stock, see the IT:IRE Stock Forecast page.

Iren S.p.A. Reports Robust Q1 2025 Results with Strategic Growth Initiatives
May 15, 2025

Iren S.p.A. reported strong financial results for the first quarter of 2025, with a 9% increase in EBITDA and an 8% rise in net profit, driven by strategic investments and the consolidation of Egea. The company’s investments in infrastructure and sustainability initiatives, such as a 12% increase in technical investments and a 35% expansion in waste collection services, underscore its commitment to growth and environmental responsibility, positioning it as a leader in the utility sector.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR2.30 price target. To see the full list of analyst forecasts on Iren S.p.A. stock, see the IT:IRE Stock Forecast page.

Iren S.p.A. Board Appoints New Leadership and Committee Members
Apr 24, 2025

Iren S.p.A.’s Board of Directors has appointed new leadership roles, assigning specific delegations and powers to ensure stability and continuity in management. The Board has also verified the integrity and independence of its directors, adhering to corporate governance standards, and appointed members to its Control, Risks, and Sustainability Committee.

Iren S.p.A. Approves 2024 Financials and Appoints New Board
Apr 24, 2025

Iren S.p.A.’s Shareholders’ Meeting approved the 2024 financial statements, a dividend proposal of 0.1283 euros per share, and appointed a new Board of Directors with Luca Dal Fabbro confirmed as Chairman. The company has demonstrated resilience in facing challenges like the energy crisis, achieving an average annual EBITDA growth of 8% and making substantial investments. These efforts underscore Iren’s commitment to its multi-business model and its strategic goals, ensuring continued growth and stakeholder value.

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: Jul 09, 2025