SNAM SPA (SRG.MI) Stock Fundamental Analysis
BIT:SRG - Euronext Milan - IT0003153415 - Common Stock - Currency: EUR
Taking everything into account, SRG scores 4 out of 10 in our fundamental rating. SRG was compared to 4 industry peers in the Gas Utilities industry. There are concerns on the financial health of SRG while its profitability can be described as average. While showing a medium growth rate, SRG is valued expensive at the moment.
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.
SRG had a positive operating cash flow in 4 of the past 5 years.
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.
With a decent Return On Equity value of 24.13%, SRG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
SRG has a Return On Invested Capital of 7.18%. This is comparable to the rest of the industry: SRG outperforms 50.00% of its industry peers.
SRG had an Average Return On Invested Capital over the past 3 years of 4.63%. This is in line with the industry average of 6.45%.
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
SRG's Profit Margin of 40.11% is amongst the best of the industry. SRG outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of SRG has declined.
SRG has a better Operating Margin (49.28%) than 100.00% of its industry peers.
SRG's Operating Margin has declined in the last couple of years.
SRG has a Gross Margin (51.90%) 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 | 49.28% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SRG is creating some value.
Compared to 1 year ago, SRG has about the same amount of shares outstanding.
SRG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SRG is higher compared to a year ago.
2.2 Solvency
SRG has an Altman-Z score of 0.95. This is a bad value and indicates that SRG is not financially healthy and even has some risk of bankruptcy.
SRG has a Altman-Z score (0.95) which is comparable to the rest of the industry.
SRG has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
SRG has a Debt to Equity ratio of 1.87. This is comparable to the rest of the industry: SRG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC1.48
WACC4.85%
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.
SRG's Current ratio of 0.90 is fine compared to the rest of the industry. SRG outperforms 75.00% of its industry peers.
SRG has a Quick 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.
With a Quick ratio value of 0.66, SRG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
SRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.43%, 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.
Looking at the last year, SRG shows a decrease in Revenue. The Revenue has decreased by -7.46% in the last year.
SRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)12.43%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)-7.46%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%3.54%
3.2 Future
Based on estimates for the next years, SRG will show a small growth in Earnings Per Share. The EPS will grow by 3.61% on average per year.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.61%
Revenue Next Year0.3%
Revenue Next 2Y3.29%
Revenue Next 3Y3.87%
Revenue Next 5Y3.09%
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
With a Price/Earnings ratio of 13.14, SRG is valued correctly.
75.00% of the companies in the same industry are cheaper than SRG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.84, SRG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.76, the valuation of SRG can be described as correct.
SRG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SRG to the average of the S&P500 Index (34.94), we can say SRG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
SRG's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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
SRG has a Yearly Dividend Yield of 5.58%, which is a nice return.
SRG's Dividend Yield is a higher than the industry average which is at 5.68.
Compared to an average S&P500 Dividend Yield of 2.36, 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
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 2Y3.86%
EPS Next 3Y4.17%
BIT:SRG (8/20/2025, 7:00:00 PM)
5.258
+0.1 (+1.86%)
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 Cap17.67B
Analysts71.3
Price Target5.5 (4.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend0.28
Dividend Growth(5Y)4.51%
DP43.67%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.67%
Min EPS beat(2)-6.3%
Max EPS beat(2)17.64%
EPS beat(4)2
Avg EPS beat(4)2.44%
Min EPS beat(4)-13.92%
Max EPS beat(4)17.64%
EPS beat(8)4
Avg EPS beat(8)2.26%
EPS beat(12)6
Avg EPS beat(12)0.08%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-0.11%
Revenue beat(4)0
Avg Revenue beat(4)-7.75%
Min Revenue beat(4)-25.83%
Max Revenue beat(4)-0.11%
Revenue beat(8)2
Avg Revenue beat(8)2.07%
Revenue beat(12)5
Avg Revenue beat(12)12.97%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.09%
PT rev (3m)2.75%
EPS NQ rev (1m)1.78%
EPS NQ rev (3m)-4.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.76 | ||
| P/S | 3.21 | ||
| P/FCF | N/A | ||
| P/OCF | 9.41 | ||
| P/B | 1.93 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.4
EY7.61%
EPS(NY)0.41
Fwd EY7.84%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)0.56
OCFY10.63%
SpS1.64
BVpS2.72
TBVpS2.16
PEG (NY)2.65
PEG (5Y)4.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 24.13% | ||
| ROCE | 9.95% | ||
| ROIC | 7.18% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 8.27% | ||
| OM | 49.28% | ||
| PM (TTM) | 40.11% | ||
| GM | 51.9% | ||
| 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-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.52 | ||
| Cap/Depr | 262.59% | ||
| Cap/Sales | 51.59% | ||
| Interest Coverage | 6.56 | ||
| Cash Conversion | 49.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.95 |
F-Score5
WACC4.85%
ROIC/WACC1.48
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)12.43%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%-4.76%
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.61%
Revenue 1Y (TTM)-7.46%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%3.54%
Revenue Next Year0.3%
Revenue Next 2Y3.29%
Revenue Next 3Y3.87%
Revenue Next 5Y3.09%
EBIT growth 1Y11.62%
EBIT growth 3Y5.97%
EBIT growth 5Y3.08%
EBIT Next Year68.21%
EBIT Next 3Y23.17%
EBIT Next 5Y15.16%
FCF growth 1Y-103.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.19%
OCF growth 3Y10.68%
OCF growth 5Y4.07%