SNAM SPA (SRG.MI) Stock Fundamental Analysis
BIT:SRG - Euronext Milan - IT0003153415 - Common Stock - Currency: EUR
SRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SRG had positive earnings in the past year.
SRG had a positive operating cash flow in the past year.
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
The Return On Assets of SRG (5.35%) is better than 75.00% of its industry peers.
SRG's Return On Equity of 21.44% is fine compared to the rest of the industry. SRG outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.17%, SRG is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SRG is below the industry average of 7.12%.
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
SRG has a better Profit Margin (36.00%) than 100.00% of its industry peers.
SRG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 49.00%, SRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SRG has declined.
With a Gross Margin value of 53.67%, SRG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SRG's Gross Margin has been stable in the last couple of years.
| 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.
SRG has about the same amout of shares outstanding than it did 1 year ago.
SRG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SRG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that SRG is in the distress zone and has some risk of bankruptcy.
SRG has a worse Altman-Z score (0.91) than 75.00% of its industry peers.
A Debt/Equity ratio of 1.83 is on the high side and indicates that SRG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.83, SRG is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC1.42
WACC5.04%
2.3 Liquidity
SRG has a Current Ratio of 0.83. This is a bad value and indicates that SRG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.83, SRG is in line with its industry, outperforming 50.00% of the companies in the same industry.
SRG has a Quick Ratio of 0.83. 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 Quick ratio of SRG (0.62) is worse than 75.00% of its industry peers.
| 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.
Measured over the past 5 years, SRG shows a small growth in Earnings Per Share. The EPS has been growing by 2.97% on average per year.
Looking at the last year, SRG shows a very negative growth in Revenue. The Revenue has decreased by -16.79% in the last year.
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)-16.79%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 2.63% 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 2.82% on average per year.
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y2.63%
Revenue Next Year0.94%
Revenue Next 2Y4.28%
Revenue Next 3Y4.76%
Revenue Next 5Y2.82%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 13.16, the valuation of SRG can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as SRG.
When comparing the Price/Earnings ratio of SRG to the average of the S&P500 Index (26.19), we can say SRG is valued slightly cheaper.
SRG is valuated correctly with a Price/Forward Earnings ratio of 12.78.
SRG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, SRG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.07 |
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)2.65
PEG (5Y)4.43
EPS Next 2Y3.86%
EPS Next 3Y4.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.58%, SRG is a good candidate for dividend investing.
SRG's Dividend Yield is comparable with the industry average which is at 5.77.
Compared to an average S&P500 Dividend Yield of 2.40, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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
SRG pays out 49.43% of its income as dividend. 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 (5/30/2025, 10:28:53 AM)
5.266
+0.04 (+0.69%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner ChangeN/A
Ins Owners7.46%
Ins Owner ChangeN/A
Market Cap17.70B
Analysts72.5
Price Target5.35 (1.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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)0.5%
PT rev (3m)1.95%
EPS NQ rev (1m)-4.27%
EPS NQ rev (3m)-8.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)4.28%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.78 | ||
| P/S | 3.33 | ||
| P/FCF | N/A | ||
| P/OCF | 9.76 | ||
| P/B | 1.98 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 9.07 |
EPS(TTM)0.4
EY7.6%
EPS(NY)0.41
Fwd EY7.83%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)0.54
OCFY10.25%
SpS1.58
BVpS2.66
TBVpS2.19
PEG (NY)2.65
PEG (5Y)4.43
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 | 0.91 |
F-Score6
WACC5.04%
ROIC/WACC1.42
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 5Y2.63%
Revenue 1Y (TTM)-16.79%
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 5Y2.82%
EBIT growth 1Y17.61%
EBIT growth 3Y5.97%
EBIT growth 5Y3.08%
EBIT Next Year68.21%
EBIT Next 3Y23.17%
EBIT Next 5Y14.24%
FCF growth 1Y48.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1443.7%
OCF growth 3Y10.68%
OCF growth 5Y4.07%