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

• Market Cap: €3.26B
• Dividend Yield: 5.03%
• Average Volume (3M): 907.90K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.49
• Revenue Growth: 13.50%
• EPS Growth: 19.36%
• Country: IT
• Employees: 11,133
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.04
• Shares Outstanding: 1,300,931,400
• 10 Day Avg. Volume: 933,720
• 30 Day Avg. Volume: 907,905
• PEG Ratio: 1.84
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 9.74
• 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: €2.90
• Price Target Upside: 13.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €3.00 ▲(17.65% Upside)

Iren S.p.A.'s stock score is driven by strong financial performance and attractive valuation metrics. However, technical indicators suggest a bearish trend, which tempers the overall score.

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 revenue growth and operational efficiency with improved margins and a healthy return on equity. However, challenges exist in cash flow management and a relatively high debt-to-equity ratio.

Income Statement

Iren S.p.A. demonstrates a solid income statement with a consistent increase in revenue, marked by a 4.15% growth in the TTM period. The gross profit margin has improved to 38.47%, indicating efficient cost management. However, the net profit margin slightly decreased to 4.37%, suggesting some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.56 in the TTM period, indicating a balanced leverage position. The return on equity is healthy at 9.43%, reflecting effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth by 43.71% in the TTM period. The operating cash flow to net income ratio is 0.37, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.71B	5.95B	6.41B	7.75B	4.91B	3.68B
Gross Profit	2.40B	1.92B	1.86B	1.56B	1.54B	1.40B
EBITDA	1.30B	1.23B	1.09B	949.36M	912.96M	838.82M
Net Income	306.87M	268.47M	254.84M	226.02M	303.17M	239.17M
Balance Sheet
Total Assets	12.38B	12.21B	11.69B	11.72B	10.31B	9.55B
Cash, Cash Equivalents and Short-Term Investments	200.11M	326.57M	436.13M	788.40M	606.89M	890.17M
Total Debt	5.07B	614.15M	653.91M	106.62M	3.94B	3.98B
Total Liabilities	8.80B	8.87B	8.44B	8.53B	7.36B	6.79B
Stockholders Equity	3.33B	2.88B	2.81B	2.75B	2.57B	2.39B
Cash Flow
Free Cash Flow	245.47M	252.96M	-186.31M	185.49M	192.70M	136.36M
Operating Cash Flow	1.12B	1.08B	680.29M	1.08B	950.47M	821.51M
Investing Cash Flow	-945.77M	-901.04M	-886.62M	-1.14B	-811.79M	-791.22M
Financing Cash Flow	-546.64M	-291.70M	-145.95M	240.56M	-421.96M	514.00M

Iren S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2.55 is below the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.62, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ACE	70 Outperform	€4.57B	11.81	14.47%	4.50%	-15.52%	19.61%
ENEL	69 Neutral	€90.31B	14.33	23.70%	4.99%	-7.02%	24.33%
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%
HER	68 Neutral	€5.79B	11.34	13.98%	3.78%	16.50%	24.03%
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%

Iren S.p.A. Corporate Events

Iren S.p.A. Announces Review of Updated 2030 Industrial Plan

Iren S.p.A. has announced that its updated Industrial Plan to 2030 is set to be reviewed and potentially approved by the Board of Directors on November 13, 2025. This update could significantly influence the company’s strategic direction and operational focus over the next five years, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR3.00 price target. To see the full list of analyst forecasts on Iren S.p.A. stock, see the IT:IRE Stock Forecast page.

Fitch Upgrades Iren’s Debt Rating Following Italy’s Sovereign Upgrade

Fitch Ratings has upgraded Iren S.p.A.’s senior unsecured debt rating from ‘BBB’ to ‘BBB+’ and its hybrid bonds from ‘BB+’ to ‘BBB-‘. This upgrade follows the recent improvement in Italy’s Long-Term Issuer Default Rating, reflecting reduced risks associated with Iren’s debt instruments due to its substantial earnings from regulated activities.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR3.00 price target. To see the full list of analyst forecasts on Iren S.p.A. stock, see the IT:IRE Stock Forecast page.

Fitch Upgrades Iren’s Debt Ratings Following Italy’s Sovereign Upgrade

Fitch Ratings has upgraded Iren S.p.A.’s senior unsecured debt rating from ‘BBB’ to ‘BBB+’ and its hybrid bonds to ‘BBB-‘, following an improvement in Italy’s Long-Term Issuer Default Rating. This upgrade reflects a reduced risk on Iren’s debt instruments, particularly given the company’s strong presence in regulated utility sectors, enhancing its investment appeal.

The most recent analyst rating on (IT:IRE) stock is a Buy with a EUR3.00 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. Updates Major Transaction Document for Turin Energy Efficiency Project

Iren S.p.A. has updated its information document regarding a significant transaction with a related party, involving a project finance-based agreement for the redevelopment and energy efficiency of buildings in Turin. This agreement, in collaboration with the Municipality of Turin, underscores Iren’s strategic focus on enhancing energy efficiency and sustainability, potentially strengthening its market position and stakeholder relations.

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. 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.