You are probably already familiar with the shares of companies in the energy sector such as ENI or the French company EDF, but did you know that other shares in this sector are also interesting in Europe? This is the case with A2A shares, which we present here in detail with explanations of their exact activities, information on their share price and the history of their performance on the stock market charts.
Firstly, it is very important to keep a close eye on the future development of nuclear energy, as the A2A Group relies heavily on this type of energy for its future profits. Given the current controversies surrounding this type of energy, the future situation may or may not be in A2A's favour.
In the same way, and in view of the current environmental issues, it is essential for A2A to succeed in distinguishing itself by implementing various plans to reduce CO2 emissions. In this way, the company will come under less pressure from the government and will be able to stand out from the competition with a green policy. Of course, we will also keep an eye on the development of green energies by the group with the investments or purchases made for this purpose.
Another important issue for the A2A Group is of course the control of production costs. The company must significantly reduce these costs in order to increase profitability and maximise profits.
The level of demand, which has tended to decline in recent years in the face of the general economic slowdown, should also be monitored. It is quite easy to find this information on Italian economic websites specializing in the country's economic statistics.
The Group faces strong competition from several large companies. It is therefore worth keeping an eye on the evolution of the market shares of each of these players in the Italian energy sector to see how the A2A Group is faring against these aggressive adversaries. In general, all news related to this competition should be studied.
Finally, it is of course essential to keep you informed of any changes in environmental standards in Italy. The government could indeed increase the constraints for companies in the energy sector and thus weigh on A2A's production capacities.
The A2A Group is currently one of the leaders in the production and distribution of electricity and gas in Italy, but the Group also manages other related activities such as the provision of environmental services, the transport and distribution of natural gas and the management of public lighting and district heating facilities.
The A2A Group is currently one of the leaders in generation and distribution in Italy, but is of course not the only Italian company specialising in this sector. We will now present the main competitors of this group in its market with the major Italian electricity players.
This company is also an Italian company operating in the energy sector and specialising in the production and supply of electrical energy. It also offers natural gas.
This other Italian company is this time a public company which is in charge of the distribution and production of electricity as well as of the heating network. It was created following the merger between Enia and Iride in 2010. Iride was itself the result of the merger of AMGA and AEM Torino in 2006.
Still among A2A's Italian competitors, there is the company Enel for Ente Nazionale per l'Energia Elettrica. Before its privatisation in 1999, this company was the country's national electricity company. Today, it is still the main producer in the country. The group has also become one of the country's leading multi-service providers, not only of electricity but also of water and natural gas. It is also one of the leaders in the production of electricity on an international scale with no less than 283.1 TWh of electricity and several billion m3 sold each year.
This company, formerly known as Ente Nazionale Idrocaburi, is another direct competitor of A2A. This private national company specialising in hydrocarbons has existed since 1953 and was recently privatised in 1998. Even today, the Italian State holds nearly 30% of the capital of this company. ENI is active in several sectors including oil, natural gas, petrochemicals, power generation and engineering. It is present in more than 71 different countries and employs over 32,000 people worldwide.
As we have just seen, the A2A Group has some strong competitors in the Italian market. Fortunately, however, the company can also count on some strategic allies, as it regularly enters into partnerships with other companies. Here are two concrete examples:
In 2020, A2A entered into a partnership with the Suez Group for an industrial waste management system. The memorandum of understanding set up aims to create a player of excellence dedicated to the management of waste generated by the Italian industrial system. This agreement also provides for the definition of a new company with joint ownership for both industrial entities. This joint venture will therefore be able to combine assets, resources and strategic capabilities along the entire value chain of the environmental sector.
Another strategic partnership was set up in 2009, this time with the car manufacturer Renault, as part of the development of zero emission mobility. For the Renault Group, this partnership is part of its strategy to market a complete range of electric vehicles. For the Italian A2A Group, this partnership is part of its activity in the field of sustainable development.
If, like many other individual investors, you are considering taking a strategic long position in the A2A share price, you need to consider all the factors that could influence the underlying trend of this asset over the longer or shorter term. The best way to do this is to compare the company's strengths and weaknesses to see how it is likely to perform in the coming months and years, and therefore how profitable it might be in the future. Because it is according to this profitability that the investors will decide to be interested or not in this share what will influence of course its stock exchange price. To begin this analysis, let's first look at the main strengths of this company, which are detailed below.
After reading the advantages and strengths of A2A and its issuing company, you may want to consider buying the stock now or adding it to your portfolio. But before implementing such a strategy, it is important to also be aware of this group's probable weaknesses, which, although fewer in number, can nevertheless weigh heavily in the balance and have a significant influence on the evolution of the underlying trend in A2A's share price. For this reason, we are going to present here the elements likely to bring down the price of this stock with the main known weaknesses of the company A2A.
A2A Group's weaknesses are obviously fewer than its strengths. However, if you want your positions in this stock to have a chance of turning a profit, you should also take the time to study their weight and importance in the eyes of analysts and shareholders. This way, you can better anticipate future movements in the stock and take wise positions based on those expectations. It is not the number of strengths or weaknesses that counts, but their importance for the future of A2A.
As of July 2020, 27.4% of the A2A Group's share capital is owned by the Municipality of Milan and 27.4% by the Municipality of Brescia. Of the remaining shares, 3.5% are held by Motor Colombus Atel AG, 2% by the Municipality of Bergamo and 2% by Fingruppo Holding SpA. The remainder of the Group's shares are traded freely on the stock market. This is the free float of the company.
The A2A Group holds stakes in several companies including Transalpina di Energia, a 50-50 joint venture with French utility EDF, a 6.4% stake in Swiss company ATEL Holding AG which is a private power producer, and a 50% stake in the Ergon Energia joint venture with Spanish company Endesa. Previously and until 2012, the group owned the French company Coriance which has since been acquired by KKR Infrastructure.
To have the best chance of detecting convincing upward or downward signals for A2A stock, you must imperatively set up a technical analysis of this stock. Indeed, in addition to a quality fundamental analysis, this graphical study will help you validate your signals and maximize the effectiveness of your strategy.
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