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

• Market Cap: €3.24B
• Dividend Yield: 5.09%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.57
• Revenue Growth: 13.50%
• EPS Growth: 19.36%
• Country: IT
• Employees: 11,133
• Sector: Utilities
• Sector Strength: 63
• Industry: Diversified Utilities
• EPS (TTM): 0.04
• Shares Outstanding: 1,300,931,400
• 10 Day Avg. Volume: 845,686
• 30 Day Avg. Volume: 1,166,274
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: €3.00 ▲(17.65% Upside)

Iren S.p.A. is supported by strong financial performance and attractive valuation, though technical indicators suggest a lack of momentum. The company's challenges in cash flow management and leverage need attention to sustain financial health.

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

Company Description

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,849 kilometers of medium and low voltage networks to approximately 725,000 connected users; and natural gas through its network of approximately 8,115 kilometers of high, medium, and low-pressure pipes to approximately 741,000 customers. The company also operates integrated water cycle, which includes 20,088 kilometers of pipeline networks that serve 2.8 million residents; 11,291 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 23 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 95 photovoltaic production plants with an installed capacity of 18 MW. Iren SpA is based in Reggio Emilia, Italy.

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: Neutral
• Last Price: 2.55
• 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 2.55 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 2.24, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.33 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
IRE	70 Outperform	€3.24B	10.55	9.99%	5.09%	13.50%	19.36%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
0N54	―	€6.59B	8.02	16.17%	―	―	―
0MHD	―	€4.14B	10.71	14.47%	―	―	―
0NRE	―	€79.72B	12.60	20.53%	―	―	―
0NVV	―	€5.29B	10.37	13.98%	―	―	―
I10	―	€7.67B	13.76	20.21%	―	―	―

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.