SNAM SPA (SRG.MI) Stock Fundamental Analysis
BIT:SRG - Euronext Milan - IT0003153415 - Common Stock - Currency: EUR
Taking everything into account, SRG scores 3 out of 10 in our fundamental rating. SRG was compared to 5 industry peers in the Gas Utilities industry. SRG has a medium profitability rating, but doesn't score so well on its financial health evaluation. SRG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SRG was profitable.
In the past year SRG had a positive cash flow from operations.
In the past 5 years SRG has always been profitable.
Of the past 5 years SRG 4 years had a positive operating cash flow.
1.2 Ratios
SRG has a better Return On Assets (5.35%) than 80.00% of its industry peers.
SRG's Return On Equity of 21.44% is fine compared to the rest of the industry. SRG outperforms 80.00% of its industry peers.
SRG has a Return On Invested Capital (7.17%) which is comparable to the rest of the industry.
SRG had an Average Return On Invested Capital over the past 3 years of 4.63%. This is below the industry average of 6.67%.
The last Return On Invested Capital (7.17%) for SRG is above the 3 year average (4.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 21.44% | ||
| ROIC | 7.17% |
ROA(3y)2.99%
ROA(5y)3.75%
ROE(3y)12.65%
ROE(5y)15.15%
ROIC(3y)4.63%
ROIC(5y)4.83%
1.3 Margins
The Profit Margin of SRG (36.00%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of SRG has declined.
With an excellent Operating Margin value of 49.00%, SRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SRG's Operating Margin has declined in the last couple of years.
SRG has a Gross Margin (53.67%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49% | ||
| PM (TTM) | 36% | ||
| GM | 53.67% |
OM growth 3Y3.22%
OM growth 5Y-2.76%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3Y4.14%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SRG is still creating some value.
The number of shares outstanding for SRG remains at a similar level compared to 1 year ago.
The number of shares outstanding for SRG has been increased compared to 5 years ago.
The debt/assets ratio for SRG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that SRG is in the distress zone and has some risk of bankruptcy.
SRG has a worse Altman-Z score (0.89) than 80.00% of its industry peers.
SRG has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
SRG has a worse Debt to Equity ratio (1.83) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC1.5
WACC4.79%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SRG may have some problems paying its short term obligations.
SRG has a Current ratio of 0.83. This is amonst the worse of the industry: SRG underperforms 80.00% of its industry peers.
A Quick Ratio of 0.62 indicates that SRG may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, SRG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.80%, which is quite good.
SRG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.97% yearly.
SRG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.55%.
Measured over the past years, SRG shows a small growth in Revenue. The Revenue has been growing by 6.01% on average per year.
EPS 1Y (TTM)15.8%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%21.21%
Revenue 1Y (TTM)-13.55%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 3.25% on average over the next years.
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.25%
Revenue Next Year0.94%
Revenue Next 2Y4.28%
Revenue Next 3Y4.76%
Revenue Next 5Y2.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.68, the valuation of SRG can be described as correct.
60.00% of the companies in the same industry are cheaper than SRG, based on the Price/Earnings ratio.
SRG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 12.30, SRG is valued correctly.
SRG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SRG to the average of the S&P500 Index (36.44), we can say SRG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRG is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SRG does not grow enough to justify the current Price/Earnings ratio.
SRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.55
PEG (5Y)4.27
EPS Next 2Y3.86%
EPS Next 3Y4.17%
5. Dividend
5.1 Amount
SRG has a Yearly Dividend Yield of 5.76%, which is a nice return.
SRG's Dividend Yield is a higher than the industry average which is at 5.55.
Compared to an average S&P500 Dividend Yield of 2.35, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
5.2 History
The dividend of SRG has a limited annual growth rate of 4.51%.
Dividend Growth(5Y)4.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.43% of the earnings are spent on dividend by SRG. This is a bit on the high side, but may be sustainable.
SRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.43%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
BIT:SRG (7/18/2025, 7:00:00 PM)
5.07
+0.03 (+0.52%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners23.72%
Inst Owner ChangeN/A
Ins Owners7.45%
Ins Owner ChangeN/A
Market Cap17.04B
Analysts71.67
Price Target5.51 (8.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend0.28
Dividend Growth(5Y)4.51%
DP49.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-13.92%
Max EPS beat(2)12.35%
EPS beat(4)2
Avg EPS beat(4)2.52%
Min EPS beat(4)-13.92%
Max EPS beat(4)12.35%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)7
Avg EPS beat(12)1.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-14.55%
Min Revenue beat(2)-25.83%
Max Revenue beat(2)-3.27%
Revenue beat(4)0
Avg Revenue beat(4)-13.77%
Min Revenue beat(4)-25.83%
Max Revenue beat(4)-3.27%
Revenue beat(8)3
Avg Revenue beat(8)3.48%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.78%
PT rev (3m)3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.3 | ||
| P/S | 3.21 | ||
| P/FCF | N/A | ||
| P/OCF | 9.39 | ||
| P/B | 1.91 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)0.4
EY7.89%
EPS(NY)0.41
Fwd EY8.13%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)0.54
OCFY10.65%
SpS1.58
BVpS2.66
TBVpS2.19
PEG (NY)2.55
PEG (5Y)4.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 21.44% | ||
| ROCE | 10.17% | ||
| ROIC | 7.17% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 8.18% | ||
| OM | 49% | ||
| PM (TTM) | 36% | ||
| GM | 53.67% | ||
| FCFM | N/A |
ROA(3y)2.99%
ROA(5y)3.75%
ROE(3y)12.65%
ROE(5y)15.15%
ROIC(3y)4.63%
ROIC(5y)4.83%
ROICexc(3y)4.97%
ROICexc(5y)5.28%
ROICexgc(3y)5.31%
ROICexgc(5y)5.63%
ROCE(3y)6.69%
ROCE(5y)7.13%
ROICexcg growth 3Y-1.38%
ROICexcg growth 5Y-4.6%
ROICexc growth 3Y-1.53%
ROICexc growth 5Y-4.68%
OM growth 3Y3.22%
OM growth 5Y-2.76%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3Y4.14%
GM growth 5Y-0.97%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.56 | ||
| Cap/Depr | 286.08% | ||
| Cap/Sales | 52.95% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 50.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.89 |
F-Score6
WACC4.79%
ROIC/WACC1.5
Cap/Depr(3y)209.59%
Cap/Depr(5y)186.27%
Cap/Sales(3y)52.8%
Cap/Sales(5y)47.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.8%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%21.21%
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.25%
Revenue 1Y (TTM)-13.55%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%8.38%
Revenue Next Year0.94%
Revenue Next 2Y4.28%
Revenue Next 3Y4.76%
Revenue Next 5Y2.79%
EBIT growth 1Y17.61%
EBIT growth 3Y5.97%
EBIT growth 5Y3.08%
EBIT Next Year68.21%
EBIT Next 3Y23.17%
EBIT Next 5Y14.78%
FCF growth 1Y48.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1443.7%
OCF growth 3Y10.68%
OCF growth 5Y4.07%