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1. Company Snapshot

1.a. Company Description

Italgas S.p.A., together with its subsidiaries, engages in the distribution of natural gas in Italy.It is involved in the transportation of gas through local pipeline networks from the delivery points at the reduction and measurement stations interconnected with the transport networks to the points of final delivery to households, enterprises, etc.The company operated a distribution network of 74,397 kilometers.


It also engages in metering activities; and distributes and sells water.The company was founded in 1837 and is based in Milan, Italy.

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1.b. Last Insights on IG

Italgas S.p.A.'s recent performance was driven by its acquisition of 2i Rete Gas for $5.8 billion, expanding its gas distribution network and increasing its market share. The company's new plan targets nearly €3 billion in profit by 2030, indicating a strong growth trajectory. Additionally, Italgas has announced a binding offer to acquire 2i Rete Gas, which is expected to be completed soon. This strategic move is expected to enhance the company's competitiveness and drive future growth.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Italgas Expands Use of Picarro Network Intelligence Solutions Following Acquisition of 2i Rete Gas

Sep -10

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Italgas (BIT:IG): Evaluating Valuation After a Year of Strong Stock Performance

Sep -09

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Italgas SpA (ITGGF) Q1 2025 Earnings Call Highlights: Strong Financial Performance Amid ...

May -08

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Italgas SpA (ITGGF) Q4 2024 Earnings Call Highlights: Strong EBITDA Growth and Strategic ...

Feb -13

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Italgas signs $5.8bn deal to acquire 2i Rete Gas

Oct -07

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Italgas Targets €2.8 Billion Profit by 2030 After Buying Rival

Oct -07

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Italgas Agrees to Buy Rival 2i Rete Gas in €5.3 Billion Deal

Oct -05

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Italgas' main shareholder ready to support acquisition of rival

May -16

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.85%)

6. Segments

Gas Distribution

Expected Growth: 4.83%

Italgas S.p.A.'s 4.83% growth in Gas Distribution is driven by increasing demand for clean energy, government incentives for gas infrastructure development, and strategic acquisitions expanding its customer base. Additionally, investments in digitalization and grid modernization have improved operational efficiency, further boosting growth.

Energy Efficiency

Expected Growth: 4.83%

Italgas S.p.A.'s 4.83% growth in Energy Efficiency is driven by increasing adoption of smart meters, government incentives for sustainable energy, and rising demand for energy-efficient solutions. Additionally, the company's investments in digitalization and innovation, as well as its focus on reducing energy consumption and emissions, contribute to its growth in this segment.

Corporate and Other

Expected Growth: 9.27%

Italgas S.p.A.'s Corporate and Other segment growth of 9.27% is driven by increased investments in digitalization and process optimization, cost savings initiatives, and a favorable regulatory environment. Additionally, the company's focus on sustainability and energy transition efforts have contributed to the growth.

7. Detailed Products

Natural Gas Distribution

Italgas S.p.A. is responsible for the transportation and distribution of natural gas to households, businesses, and industries.

LNG Regasification

Italgas S.p.A. operates liquefied natural gas (LNG) regasification terminals, providing a vital link in the natural gas supply chain.

Gas Metering and Management

Italgas S.p.A. provides gas metering and management services, ensuring accurate measurement and billing of natural gas consumption.

Energy Efficiency Solutions

Italgas S.p.A. offers energy efficiency solutions, helping customers reduce energy consumption and lower their environmental impact.

Renewable Energy Solutions

Italgas S.p.A. invests in renewable energy sources, such as biomethane and hydrogen, to promote a sustainable energy future.

8. Italgas S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Italgas S.p.A. is medium, as there are alternative energy sources available, but they are not yet widely adopted.

Bargaining Power Of Customers

The bargaining power of customers for Italgas S.p.A. is low, as the company operates in a regulated industry and has a strong market position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Italgas S.p.A. is medium, as the company relies on a few large suppliers, but has some flexibility in its procurement practices.

Threat Of New Entrants

The threat of new entrants for Italgas S.p.A. is low, as the company operates in a highly regulated industry with significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Italgas S.p.A. is high, as the company operates in a competitive market with several large players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.09%
Debt Cost 3.95%
Equity Weight 24.91%
Equity Cost 6.81%
WACC 4.66%
Leverage 301.50%

11. Quality Control: Italgas S.p.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Italgas

A-Score: 6.7/10

Value: 4.6

Growth: 3.9

Quality: 4.9

Yield: 8.1

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
AltaGas

A-Score: 6.7/10

Value: 4.7

Growth: 6.1

Quality: 3.6

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Stock-Card
Snam

A-Score: 6.5/10

Value: 4.2

Growth: 3.7

Quality: 5.2

Yield: 8.8

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Stock-Card
Centrica

A-Score: 5.9/10

Value: 6.5

Growth: 5.6

Quality: 3.5

Yield: 3.1

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
EVN

A-Score: 5.9/10

Value: 6.6

Growth: 6.6

Quality: 5.6

Yield: 5.6

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Enagás

A-Score: 5.8/10

Value: 4.7

Growth: 1.0

Quality: 5.2

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.28$

Current Price

9.29$

Potential

-0.00%

Expected Cash-Flows