0.48%
6.63%
6.09%
14.21%
9.42%
-22.30%
-30.33%
AI Spotlight on IRE
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.
Market Data
| Last Price | 2.09 |
| Change Percentage | 0.48% |
| Open | 2.08 |
| Previous Close | 2.08 |
| Market Cap ( Millions) | 2682 |
| Volume | 1696352 |
| Year High | 2.1 |
| Year Low | 1.71 |
| M A 50 | 1.96 |
| M A 200 | 1.94 |
Financial Ratios
| FCF Yield | 12.04% |
| Dividend Yield | 5.68% |
| ROE | 9.49% |
| Debt / Equity | 0.00% |
| Net Debt / EBIDTA | -43.86% |
| Price To Book | 0.95 |
| Price Earnings Ratio | 9.91 |
| Price To FCF | 8.31 |
| Price To sales | 0.46 |
| EV / EBITDA | 1.79 |
News
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Market
Expected Growth : 6.47 %
What the company do ?
Iren SpA's market refers to the Italian multi-utility company's operations in the energy and water sectors, providing electricity, gas, and water services to customers.
Why we expect these perspectives ?
Iren SpA's 6.47% growth is driven by increasing demand for renewable energy, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on energy efficiency and cost reduction initiatives has improved operational performance, contributing to the growth. Furthermore, favorable regulatory policies and investments in digitalization have also supported the company's growth momentum.
Segment n°2 -> Energy
Expected Growth : 4.73 %
What the company do ?
Iren SpA is an Italian multi-utility company that generates and distributes energy, providing electricity, gas, and heat to households and businesses.
Why we expect these perspectives ?
Iren SpA's 4.73% energy segment growth is driven by increasing demand for renewable energy, favorable regulatory policies, and strategic investments in grid infrastructure. Additionally, the company's focus on energy efficiency and cost reduction initiatives has improved operational performance, contributing to the growth.
Segment n°3 -> Not Allocatable
Expected Growth : 4.65 %
What the company do ?
Not Allocatable from Iren SpA refers to the portion of energy consumption that cannot be attributed to a specific customer or user, such as common area lighting or heating.
Why we expect these perspectives ?
Iren SpA's 4.65% growth is driven by increasing demand for renewable energy, successful cost-cutting initiatives, and strategic acquisitions. Additionally, favorable regulatory environments and investments in grid infrastructure have contributed to the company's growth. These factors have enabled Iren SpA to expand its customer base and improve operational efficiency, resulting in sustained revenue growth.
Segment n°4 -> Environment
Expected Growth : 8.5 %
What the company do ?
Iren SpA's Environment segment focuses on waste management, water treatment, and energy production from renewable sources, promoting sustainable development.
Why we expect these perspectives ?
Iren SpA's 8.5% growth in the Environment segment is driven by increasing demand for renewable energy sources, stringent regulations on pollution, and growing investments in waste management infrastructure. Additionally, the company's focus on sustainable development and circular economy practices has contributed to its growth in this segment.
Segment n°5 -> Networks
Expected Growth : 4.77 %
What the company do ?
Iren SpA's Networks refer to the Italian multi-utility company's gas and electricity distribution networks, providing energy to households and businesses across Italy.
Why we expect these perspectives ?
Iren SpA's 4.77% growth in Networks segment is driven by increasing demand for renewable energy, expansion of smart grid infrastructure, and strategic investments in digitalization and electrification of transportation. Additionally, favorable regulatory policies and growing focus on energy efficiency contribute to the segment's growth.
Segment n°6 -> Other Services
Expected Growth : 8.5 %
What the company do ?
Iren SpA's Other Services include energy efficiency, environmental services, and public lighting management, providing comprehensive solutions for sustainable development.
Why we expect these perspectives ?
Iren SpA's 8.5% growth in Other Services is driven by increasing demand for energy efficiency solutions, expansion of waste management services, and strategic partnerships in the environmental sector. Additionally, investments in digitalization and process optimization have improved operational efficiency, contributing to the segment's growth.
Iren Spa Products
| Product Range | What is it ? |
|---|---|
| Electricity | Iren SpA provides electricity to residential, commercial, and industrial customers through its distribution network. |
| Natural Gas | Iren SpA supplies natural gas to customers through its distribution network, providing a clean and efficient source of energy. |
| Heat and Cooling | Iren SpA offers district heating and cooling services, providing thermal energy to buildings and industries. |
| Water | Iren SpA manages and distributes water resources, providing clean drinking water to households and industries. |
| Waste Management | Iren SpA offers waste collection, treatment, and disposal services, promoting sustainable waste management practices. |
| Energy Efficiency | Iren SpA provides energy efficiency solutions, helping customers reduce energy consumption and emissions. |
| Renewable Energy | Iren SpA develops and operates renewable energy sources, such as wind, solar, and hydroelectric power plants. |
Iren SpA's Porter Forces
Threat Of Substitutes
Iren SpA operates in the energy sector, which has few substitutes. However, the increasing adoption of renewable energy sources and energy-efficient technologies may pose a moderate threat to the company's operations.
Bargaining Power Of Customers
Iren SpA's customers have limited bargaining power due to the company's dominant position in the Italian energy market and the lack of alternative suppliers.
Bargaining Power Of Suppliers
Iren SpA relies on a diverse range of suppliers for its energy production, which reduces the bargaining power of individual suppliers. However, the company's dependence on imported fuels may expose it to supply chain disruptions.
Threat Of New Entrants
The energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants to Iren SpA's market share.
Intensity Of Rivalry
The Italian energy market is highly competitive, with several established players competing for market share. Iren SpA faces intense rivalry from companies such as Enel and Edison.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 62.54% |
| Debt Cost | 7.74% |
| Equity Weight | 37.46% |
| Equity Cost | 7.74% |
| WACC | 7.74% |
| Leverage | 166.95% |
Iren SpA : Quality Control
Iren SpA passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| A2A.MI | 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 … |
| 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
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
A2A
A-Score
1-Year Total Return ->
🥈
ACEA
A-Score
1-Year Total Return ->
🥉
Iren
A-Score
1-Year Total Return ->
4
Hera
A-Score
1-Year Total Return ->
5
EVN
A-Score
1-Year Total Return ->
6
