Iren SpA
Iren SpA Fundamental Analysis
Iren SpA (IRDEF) shows weak financial fundamentals with a PE ratio of 12.17, profit margin of 4.50%, and ROE of 9.06%. The company generates $6.6B in annual revenue with weak year-over-year growth of -7.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRDEF's fundamental strength across five key dimensions:
Efficiency Score
WeakIRDEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIRDEF trades at attractive valuation levels.
Growth Score
WeakIRDEF faces weak or negative growth trends.
Financial Health Score
WeakIRDEF carries high financial risk with limited liquidity.
Profitability Score
WeakIRDEF struggles to sustain strong margins.
Key Financial Metrics
Is IRDEF Expensive or Cheap?
P/E Ratio
IRDEF trades at 12.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IRDEF's PEG of -3.45 indicates potential undervaluation.
Price to Book
The market values Iren SpA at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.71 times EBITDA. This is generally considered low.
How Well Does IRDEF Make Money?
Net Profit Margin
For every $100 in sales, Iren SpA keeps $4.50 as profit after all expenses.
Operating Margin
Core operations generate 8.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.06 in profit for every $100 of shareholder equity.
ROA
Iren SpA generates $2.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Iren SpA produces operating cash flow of $1.03B, showing steady but balanced cash generation.
Free Cash Flow
Iren SpA generates weak or negative free cash flow of $142.28M, restricting financial flexibility.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
IRDEF converts 3.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How IRDEF Stacks Against Its Sector Peers
| Metric | IRDEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.17 | 19.20 | Better (Cheaper) |
| ROE | 9.06% | 1033.00% | Weak |
| Net Margin | 4.50% | 9191.00% | Weak |
| Debt/Equity | 1.37 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.85 | 1.68 | Weak Liquidity |
| ROA | 2.51% | -237.00% (disorted) | Weak |
IRDEF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Iren SpA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.14%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
14.86%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
51.29%
Industry Style: Defensive, Dividend, Income
High Growth