Critical Analysis: Iren (IRDEY) & Its Rivals

Profitability

This table compares Iren and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iren	N/A	N/A	N/A
Iren Competitors	8.86%	15.04%	4.07%

Insider and Institutional Ownership

60.3% of shares of all “Multi – Utilities” companies are owned by institutional investors. 9.9% of shares of all “Multi – Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Iren and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Iren	N/A	N/A	47.49
Iren Competitors	$16.48 billion	$269.64 million	34.39

Iren’s competitors have higher revenue and earnings than Iren. Iren is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Iren pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. Iren pays out 62.8% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.4% and pay out 65.4% of their earnings in the form of a dividend.

Summary

Iren competitors beat Iren on 7 of the 9 factors compared.

About Iren

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 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents; 11,279 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 35 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 105 photovoltaic production plants with an installed capacity of 142 MW. Iren SpA is based in Reggio Emilia, Italy.