0.35%
4.34%
9.33%
20.26%
28.37%
35.21%
26.24%

Company Description

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally.The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, waste treatment, and wind plants with a total installed capacity of 8.9 GW; and purchases and sells electricity, gas, fuels, and environmental certificates.It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems.


In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates.Further, it is involved in the management of public lighting and traffic regulation systems, votive lamps, street lights, and water purification and sewer activities, as well as offers energy efficiency and electric mobility services.Additionally, the company provides telecommunication services, including management of fixed and mobile phone lines, and data transmission lines; management and development of infrastructures to support communications; and implementation and management of video surveillance and access control systems, as well as designs solutions and applications for creating new models of cities and territories.


A2A S.p.A. is headquartered in Brescia, Italy.

Market Data

Last Price 2.29
Change Percentage 0.35%
Open 2.29
Previous Close 2.28
Market Cap ( Millions) 7159
Volume 5789202
Year High 2.33
Year Low 1.61
M A 50 2.19
M A 200 2.04

Financial Ratios

FCF Yield 2.44%
Dividend Yield 4.19%
ROE 19.32%
Debt / Equity 114.19%
Net Debt / EBIDTA 172.11%
Price To Book 1.38
Price Earnings Ratio 8.25
Price To FCF 40.91
Price To sales 0.57
EV / EBITDA 4.79

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Generation and Trading

Expected Growth : 6.9 %

What the company do ?

Generation and Trading from A2A S.p.A. refers to the production and sale of electricity, gas, and other energy sources by A2A, an Italian multi-utility company.

Why we expect these perspectives ?

A2A S.p.A.'s 6.9% growth in Generation and Trading is driven by increased electricity production from renewable sources, favorable market conditions, and strategic asset optimization. Additionally, effective risk management and hedging strategies have contributed to the segment's growth, along with a strong focus on cost reduction and operational efficiency.

Segment n°2 -> Market

Expected Growth : 4.6 %

What the company do ?

The Market from A2A S.p.A. refers to the Italian energy market, where A2A S.p.A. operates as a leading player, providing electricity, gas, and renewable energy solutions to customers.

Why we expect these perspectives ?

A2A S.p.A.'s 4.6% growth is driven by increasing demand for renewable energy, expansion in the Italian market, and strategic investments in grid modernization. Additionally, the company's focus on energy efficiency and cost savings initiatives has contributed to its growth. Furthermore, A2A's diversification into new businesses such as waste management and public lighting has also supported its growth momentum.

Segment n°3 -> Eliminations

Expected Growth : 4.83 %

What the company do ?

Eliminations from A2A S.p.A. refer to the removal of inter-company transactions and balances between A2A S.p.A. and its subsidiaries to present a consolidated financial statement.

Why we expect these perspectives ?

A2A S.p.A.'s 4.83% growth is driven by increasing demand for renewable energy, successful integration of acquired assets, and cost savings from operational efficiencies. Additionally, favorable regulatory policies and investments in grid infrastructure have contributed to the growth.

Segment n°4 -> Smart Infrastructures

Expected Growth : 8.95 %

What the company do ?

A2A S.p.A.'s Smart Infrastructures integrate technology and data to optimize energy, water, and waste management in urban areas, enhancing sustainability and citizens' quality of life.

Why we expect these perspectives ?

A2A S.p.A.'s Smart Infrastructures segment growth of 8.95% is driven by increasing adoption of IoT and AI technologies, rising demand for energy efficiency and grid modernization, and government initiatives promoting sustainable infrastructure development.

Segment n°5 -> Waste

Expected Growth : 4.65 %

What the company do ?

Waste from A2A S.p.A. refers to the waste management services provided by A2A, an Italian multi-utility company, which collects, treats, and disposes of waste in an environmentally responsible manner.

Why we expect these perspectives ?

A2A S.p.A.'s waste management segment growth of 4.65% is driven by increasing waste generation, stringent environmental regulations, and rising adoption of waste-to-energy conversion. Additionally, A2A's strategic acquisitions and investments in sustainable waste management practices have contributed to its growth.

Segment n°6 -> Corporate Segment

Expected Growth : 8.5 %

What the company do ?

The Corporate Segment from A2A S.p.A. provides energy and environmental services to industrial and commercial clients, offering customized solutions for energy efficiency and sustainability.

Why we expect these perspectives ?

A2A S.p.A.'s Corporate Segment growth of 8.5% is driven by increasing demand for renewable energy, effective cost management, and strategic investments in grid infrastructure. Additionally, the segment benefits from favorable regulatory frameworks, growing electricity distribution volumes, and a strong focus on sustainability and energy efficiency initiatives.

A2A S.P.A. Products

Product Range What is it ?
Electricity A2A S.p.A. generates and distributes electricity to households and businesses across Italy.
Gas A2A S.p.A. supplies natural gas to customers in Italy, providing a clean and efficient source of energy.
Waste Management A2A S.p.A. offers waste collection, treatment, and disposal services to municipalities and businesses.
Water Management A2A S.p.A. provides water supply, treatment, and distribution services to households and industries.
Heat and Cooling A2A S.p.A. offers district heating and cooling services to urban areas, providing efficient and sustainable thermal energy.
Renewable Energy A2A S.p.A. develops and operates renewable energy sources, such as wind, solar, and hydroelectric power.

A2A S.p.A.'s Porter Forces

A2A S.p.A. operates in a market with moderate threat of substitutes, as customers have some alternatives but they are not very attractive.

A2A S.p.A. faces high bargaining power of customers, as they are large and have significant purchasing power.

A2A S.p.A. has a low bargaining power of suppliers, as they are numerous and have limited negotiating power.

A2A S.p.A. operates in a market with moderate threat of new entrants, as there are some barriers to entry but they are not insurmountable.

A2A S.p.A. operates in a highly competitive market, with many players competing for market share.

Capital Structure

Value
Debt Weight 59.97%
Debt Cost 3.95%
Equity Weight 40.03%
Equity Cost 8.87%
WACC 5.92%
Leverage 149.79%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
IRE.MI 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 …
ACE.MI ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy. The company operates through Environment, Commercial and Trading, Water, Energy Infrastructure, Engineering and Services, and Abroad segments. …
EVN.VI EVN AG provides energy and environmental services for private and business customers, as well as municipalities in Austria, Bulgaria, Croatia, Germany, and Albania. The company operates through Energy, Generation, Networks, …
EDP.LS EDP - Energias de Portugal, S.A. engages in the production, transmission, distribution, and commercialization of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Brazil, North …
HER.MI Hera S.p.A., a multi-utility company, engages in the waste management, water services, and energy businesses in Italy. It engages in the sale and distribution of methane and natural gas, as …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
2.28$
Current Price
2.29$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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