SNAM SPA (SRG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:SRG • IT0003153415
5.798 EUR
+0.04 (+0.62%)
Last: Jan 30, 2026, 07:00 PM
Overall SRG gets a fundamental rating of 4 out of 10. We evaluated SRG against 4 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 is not valued too expensively and it also shows a decent growth rate.
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.
- Each year in the past 5 years SRG has been profitable.
- Of the past 5 years SRG 4 years had a positive operating cash flow.
1.2 Ratios
- SRG has a Return On Assets of 6.13%. This is amongst the best in the industry. SRG outperforms 100.00% of its industry peers.
- The Return On Equity of SRG (24.13%) is better than 80.00% of its industry peers.
- SRG has a Return On Invested Capital (7.18%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SRG is below the industry average of 6.63%.
- The 3 year average ROIC (4.63%) for SRG is below the current ROIC(7.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 24.13% | ||
| ROIC | 7.18% |
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 (40.11%) is better than 100.00% of its industry peers.
- SRG's Profit Margin has declined in the last couple of years.
- SRG has a Operating Margin of 49.28%. This is amongst the best in the industry. SRG outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of SRG has declined.
- SRG has a Gross Margin (51.90%) which is in line with its industry peers.
- SRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.28% | ||
| PM (TTM) | 40.11% | ||
| GM | 51.9% |
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
- SRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for SRG remains at a similar level compared to 1 year ago.
- SRG has more shares outstanding than it did 5 years ago.
- SRG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.00, we must say that SRG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.00, SRG is doing worse than 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.87 is on the high side and indicates that SRG has dependencies on debt financing.
- SRG has a worse Debt to Equity ratio (1.87) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC1.42
WACC5.04%
2.3 Liquidity
- SRG has a Current Ratio of 0.90. This is a bad value and indicates that SRG is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of SRG (0.90) is comparable to the rest of the industry.
- A Quick Ratio of 0.66 indicates that SRG may have some problems paying its short term obligations.
- The Quick ratio of SRG (0.66) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.65% over the past year.
- The Earnings Per Share has been growing slightly by 2.97% on average over the past years.
- SRG shows a decrease in Revenue. In the last year, the revenue decreased by -2.72%.
- 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)14.65%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%9.89%
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%-11.65%
3.2 Future
- The Earnings Per Share is expected to grow by 4.19% on average over the next years.
- Based on estimates for the next years, SRG will show a small growth in Revenue. The Revenue will grow by 3.04% on average per year.
EPS Next Y10.01%
EPS Next 2Y5.16%
EPS Next 3Y4.72%
EPS Next 5Y4.19%
Revenue Next Year-0.84%
Revenue Next 2Y2.72%
Revenue Next 3Y3.52%
Revenue Next 5Y3.04%
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.14, 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 28.32.
- SRG is valuated correctly with a Price/Forward Earnings ratio of 13.72.
- Based on the Price/Forward Earnings ratio, SRG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. SRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- SRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)4.76
EPS Next 2Y5.16%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
- SRG has a Yearly Dividend Yield of 5.12%, which is a nice return.
- SRG's Dividend Yield is a higher than the industry average which is at 4.87.
- SRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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
- 43.67% of the earnings are spent on dividend by SRG. This is a bit on the high side, but may be sustainable.
- The dividend of SRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.67%
EPS Next 2Y5.16%
EPS Next 3Y4.72%
SNAM SPA / SRG.MI FAQ
What is the ChartMill fundamental rating of SNAM SPA (SRG.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SRG.MI.
What is the valuation status for SRG stock?
ChartMill assigns a valuation rating of 4 / 10 to SNAM SPA (SRG.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for SNAM SPA?
SNAM SPA (SRG.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for SRG stock?
The Price/Earnings (PE) ratio for SNAM SPA (SRG.MI) is 14.14 and the Price/Book (PB) ratio is 2.13.
How sustainable is the dividend of SNAM SPA (SRG.MI) stock?
The dividend rating of SNAM SPA (SRG.MI) is 6 / 10 and the dividend payout ratio is 43.67%.