TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TRN - IT0003242622 - Common Stock
8.824 EUR
-0.08 (-0.9%)
Overall TRN gets a fundamental rating of 5 out of 10. We evaluated TRN against 25 industry peers in the Electric Utilities industry. TRN has an excellent profitability rating, but there are concerns on its financial health. TRN has a decent growth rate and is not valued too expensively. TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
TRN had a positive operating cash flow in the past year.
In the past 5 years TRN has always been profitable.
In the past 5 years TRN always reported a positive cash flow from operatings.
1.2 Ratios
TRN has a better Return On Assets (5.70%) than 76.00% of its industry peers.
TRN has a better Return On Equity (21.30%) than 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.22%, TRN is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is in line with the industry average of 6.58%.
The 3 year average ROIC (5.42%) for TRN is below the current ROIC(8.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 21.3% | ||
| ROIC | 8.22% |
ROA(3y)3.81%
ROA(5y)3.76%
ROE(3y)14.02%
ROE(5y)15.38%
ROIC(3y)5.42%
ROIC(5y)5.17%
1.3 Margins
TRN has a better Profit Margin (28.88%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
TRN's Operating Margin of 47.14% is amongst the best of the industry. TRN outperforms 96.00% of its industry peers.
In the last couple of years the Operating Margin of TRN has remained more or less at the same level.
TRN's Gross Margin of 80.75% is fine compared to the rest of the industry. TRN outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of TRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.14% | ||
| PM (TTM) | 28.88% | ||
| GM | 80.75% |
OM growth 3Y-0.34%
OM growth 5Y-1.39%
PM growth 3Y-1.94%
PM growth 5Y-2.37%
GM growth 3Y0.01%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRN is creating some value.
TRN has about the same amout of shares outstanding than it did 1 year ago.
TRN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TRN has been reduced compared to a year ago.
2.2 Solvency
TRN has an Altman-Z score of 1.22. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.22, TRN perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
TRN has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
TRN's Debt to Equity ratio of 1.78 is on the low side compared to the rest of the industry. TRN is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.48
WACC5.55%
2.3 Liquidity
A Current Ratio of 0.81 indicates that TRN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, TRN is in line with its industry, outperforming 44.00% of the companies in the same industry.
TRN has a Quick Ratio of 0.81. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
TRN has a Quick ratio of 0.79. This is comparable to the rest of the industry: TRN outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.58% over the past year.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
The Revenue has grown by 15.80% in the past year. This is quite good.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)6.58%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.65%
3.2 Future
Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 3.31% on average per year.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y5.76%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
EPS Next 5Y3.31%
Revenue Next Year11.05%
Revenue Next 2Y9.25%
Revenue Next 3Y9.31%
Revenue Next 5Y7.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 16.04, TRN is valued correctly.
TRN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.29. TRN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.00 indicates a correct valuation of TRN.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 64.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.51. TRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)2.36
EPS Next 2Y3.2%
EPS Next 3Y3.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.41%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.58, TRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 7.81%!
Dividend Growth(5Y)7.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.65% of the earnings are spent on dividend by TRN. This is a bit on the high side, but may be sustainable.
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.65%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
BIT:TRN (12/10/2025, 5:36:15 PM)
8.824
-0.08 (-0.9%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.74B
Revenue(TTM)3.62B
Net Income(TTM)1.60B
Analysts65.22
Price Target9.27 (5.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend0.34
Dividend Growth(5Y)7.81%
DP49.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.9%
Min EPS beat(2)5.01%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)7.67%
Min EPS beat(4)4.64%
Max EPS beat(4)10.78%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)7
Avg EPS beat(12)-7.47%
EPS beat(16)9
Avg EPS beat(16)-5.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)10.66%
Revenue beat(8)7
Avg Revenue beat(8)3.07%
Revenue beat(12)10
Avg Revenue beat(12)10.23%
Revenue beat(16)14
Avg Revenue beat(16)32.58%
PT rev (1m)1.98%
PT rev (3m)3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 16 | ||
| P/S | 3.2 | ||
| P/FCF | N/A | ||
| P/OCF | 8.94 | ||
| P/B | 2.36 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)0.55
EY6.23%
EPS(NY)0.55
Fwd EY6.25%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY11.18%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)2.79
PEG (5Y)2.36
Graham Number6.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 21.3% | ||
| ROCE | 12.75% | ||
| ROIC | 8.22% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.96% | ||
| OM | 47.14% | ||
| PM (TTM) | 28.88% | ||
| GM | 80.75% | ||
| FCFM | N/A |
ROA(3y)3.81%
ROA(5y)3.76%
ROE(3y)14.02%
ROE(5y)15.38%
ROIC(3y)5.42%
ROIC(5y)5.17%
ROICexc(3y)6.18%
ROICexc(5y)6.04%
ROICexgc(3y)6.53%
ROICexgc(5y)6.36%
ROCE(3y)8.16%
ROCE(5y)7.91%
ROICexgc growth 3Y2.03%
ROICexgc growth 5Y0.82%
ROICexc growth 3Y1.83%
ROICexc growth 5Y0.59%
OM growth 3Y-0.34%
OM growth 5Y-1.39%
PM growth 3Y-1.94%
PM growth 5Y-2.37%
GM growth 3Y0.01%
GM growth 5Y-0.57%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 324.54% | ||
| Cap/Sales | 52.83% | ||
| Interest Coverage | 6.57 | ||
| Cash Conversion | 56.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.22 |
F-Score5
WACC5.55%
ROIC/WACC1.48
Cap/Depr(3y)274.34%
Cap/Depr(5y)249.54%
Cap/Sales(3y)67.98%
Cap/Sales(5y)63.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.58%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0%
EPS Next Y5.76%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
EPS Next 5Y3.31%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.65%
Revenue Next Year11.05%
Revenue Next 2Y9.25%
Revenue Next 3Y9.31%
Revenue Next 5Y7.2%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.92%
EBIT Next 3Y24.12%
EBIT Next 5Y16.62%
FCF growth 1Y-1095.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.85%
OCF growth 3Y20.84%
OCF growth 5Y2.54%
TERNA-RETE ELETTRICA NAZIONA / TRN.MI FAQ
What is the ChartMill fundamental rating of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRN.MI.
What is the valuation status for TRN stock?
ChartMill assigns a valuation rating of 4 / 10 to TERNA-RETE ELETTRICA NAZIONA (TRN.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for TERNA-RETE ELETTRICA NAZIONA?
TERNA-RETE ELETTRICA NAZIONA (TRN.MI) has a profitability rating of 7 / 10.
What is the valuation of TERNA-RETE ELETTRICA NAZIONA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is 16.04 and the Price/Book (PB) ratio is 2.36.
Can you provide the expected EPS growth for TRN stock?
The Earnings per Share (EPS) of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is expected to grow by 5.76% in the next year.