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

• Market Cap: €3.24B
• Dividend Yield: 5.09%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.57
• Revenue Growth: 13.50%
• EPS Growth: 19.36%
• Country: IT
• Employees: 11,133
• Sector: Utilities
• Sector Strength: 87
• Industry: Diversified Utilities
• EPS (TTM): 0.04
• Shares Outstanding: 1,300,931,400
• 10 Day Avg. Volume: 1,586,729
• 30 Day Avg. Volume: 1,235,570
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.95
• Price Target Upside: 17.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: €3.00 ▲(19.05% Upside)

Iren S.p.A. has a strong financial performance, supported by robust profitability and effective cash flow management. The stock is attractively valued with a low P/E ratio and high dividend yield, making it appealing for income-focused investors. However, the technical analysis indicates a neutral outlook, with no strong momentum or trend direction.

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

Company Description

Iren S.p.A. (IRE) is an Italian multi-utility company headquartered in Reggio Emilia, operating primarily in the sectors of energy, water, and waste management. The company provides a range of services including electricity and gas distribution, waste collection and treatment, and water supply services, serving millions of customers across Northern Italy. Iren S.p.A. focuses on sustainability and innovation, aiming to improve energy efficiency and promote renewable energy sources in its operations.

How the Company Makes Money

Iren S.p.A. generates revenue through multiple streams, primarily from the sale and distribution of electricity and gas, where it serves both residential and commercial customers. Additionally, the company earns income from water supply and wastewater treatment services, which are regulated by local authorities. Waste management services, including collection, recycling, and disposal, also contribute significantly to its revenue. Iren has established partnerships with local governments and other entities, enhancing its operational reach and efficiency. Furthermore, ongoing investments in renewable energy projects and energy efficiency solutions are expected to bolster future revenues as the demand for sustainable services continues to grow.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.45B	5.95B	6.41B	7.75B	4.91B	3.68B
Gross Profit	2.48B	1.92B	1.86B	1.56B	1.54B	1.40B
EBITDA	1.26B	1.23B	1.09B	949.36M	912.96M	838.82M
Net Income	281.92M	268.47M	254.84M	226.02M	303.17M	239.17M
Balance Sheet
Total Assets	13.12B	12.21B	11.69B	11.72B	10.31B	9.55B
Cash, Cash Equivalents and Short-Term Investments	1.23B	326.57M	436.13M	788.40M	606.89M	890.17M
Total Debt	5.35B	614.15M	653.91M	106.62M	3.94B	3.98B
Total Liabilities	9.42B	8.87B	8.44B	8.53B	7.36B	6.79B
Stockholders Equity	3.44B	2.88B	2.81B	2.75B	2.57B	2.39B
Cash Flow
Free Cash Flow	436.04M	252.96M	-186.31M	185.49M	192.70M	136.36M
Operating Cash Flow	1.29B	1.08B	680.29M	1.08B	950.47M	821.51M
Investing Cash Flow	-919.28M	-901.04M	-886.62M	-1.14B	-811.79M	-791.22M
Financing Cash Flow	-535.40M	-291.70M	-145.95M	240.56M	-421.96M	514.00M

Iren S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IRE, the sentiment is Neutral. The current price of 2.52 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 2.57, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:IRE.

Iren S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IG	79 Outperform	€7.49B	13.32	20.21%	5.16%	-3.34%	8.88%
ENEL	76 Outperform	€79.65B	12.64	20.53%	5.57%	-8.26%	24.33%
IRE	73 Outperform	€3.24B	10.54	9.99%	5.09%	13.50%	19.36%
Sector *	71 Outperform	€14.30B	49.14	13.35%	4.74%	0.08%	15.77%
ACE	71 Outperform	€4.15B	10.73	14.47%	4.87%	-15.51%	19.61%
A2A	68 Neutral	€6.64B	8.03	16.17%	4.72%	2.73%	6.02%
HER	67 Neutral	€5.36B	10.51	13.98%	4.11%	16.50%	24.03%

Iren S.p.A. Corporate Events

Iren S.p.A. Appoints New Leadership for Key Subsidiaries

Iren S.p.A. has announced the appointment of new members to the Boards of Directors and Boards of Statutory Auditors for its key subsidiaries, IREN Ambiente S.p.A., IREN Energia S.p.A., IRETI S.p.A., and IREN Mercato S.p.A., for the 2025-2027 term. This strategic move is expected to strengthen the governance of these subsidiaries, potentially enhancing operational efficiency and reinforcing Iren’s position in the utilities 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. Reports Robust Growth in H1 2025 Results

Iren S.p.A. reported strong financial performance for the first half of 2025, with significant growth in key economic indicators. The company’s revenues increased by 29% to 3,486 million euros, driven by higher commodity prices and energy volumes, while net profit rose by 24% to 184 million euros. The acquisition of Egea Holding and strategic investments in infrastructure and sustainability initiatives have bolstered Iren’s market position, reflecting its successful execution of strategic choices and operational efficiencies. The company remains optimistic about its future performance, maintaining its guidance for the year.

The most recent analyst rating on (IT:IRE) stock is a Hold with a EUR2.10 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. Expands EMTN Program to Bolster Market Presence

Iren S.p.A. has renewed its Euro Medium Term Notes (EMTN) Program, increasing the maximum issuance amount from 4 to 5 billion euros, with approval from CONSOB and Borsa Italiana. This strategic move is aimed at diversifying funding sources, enhancing its presence in the capital market, and supporting the development of a competitive and sustainable national bond market. The program aligns with Iren’s financial strategy of prioritizing sustainable financing, which constitutes about 90% of its total debt, and includes the issuance of green and hybrid bonds.

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. Completes Full Acquisition of Egea Holding

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

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

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.