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

• Market Cap: €3.32B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.61
• Revenue Growth: 9.09%
• EPS Growth: 16.49%
• Country: IT
• Employees: 11,133
• Sector: Utilities
• Sector Strength: 75
• Industry: Diversified Utilities
• EPS (TTM): 0.11
• Shares Outstanding: 1,300,931,400
• 10 Day Avg. Volume: 911,858
• 30 Day Avg. Volume: 1,392,391
• PEG Ratio: 2.42
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.46
• 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: 11.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• 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. Business Overview & Revenue Model

Company Description

Iren 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 Money

Iren 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

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: Positive
• Last Price: 2.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IG	79 Outperform	€7.22B	12.84	20.21%	5.36%	-3.34%	8.88%
ENEL	76 Outperform	€79.40B	11.20	25.20%	5.72%	-7.85%	63.65%
ACE	70 Outperform	€4.11B	11.83	13.68%	4.92%	-2.19%	14.21%
A2A	70 Outperform	€6.93B	8.38	16.17%	4.61%	2.73%	6.02%
IRE	70 Neutral	€3.32B	11.79	8.81%	4.95%	9.09%	16.49%
HER	69 Neutral	€5.69B	11.13	13.57%	3.85%	10.92%	29.39%
Sector *	60 Neutral	C$5.15B	-24.33	-19.26%	3.75%	12.02%	-69.08%

Iren S.p.A. Corporate Events

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.

Iren S.p.A. Board Appoints New Leadership and Committee Members

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

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.