TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to TRN. TRN was compared to 15 industry peers in the Electric Utilities industry. While TRN belongs to the best of the industry regarding profitability, there are concerns on its financial health. TRN is valied quite expensively at the moment, while it does show a decent growth rate. Finally TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
In the past year TRN had a positive cash flow from operations.
In the past 5 years TRN has always been profitable.
Each year in the past 5 years TRN had a positive operating cash flow.
1.2 Ratios
TRN's Return On Assets of 5.88% is fine compared to the rest of the industry. TRN outperforms 73.33% of its industry peers.
Looking at the Return On Equity, with a value of 21.24%, TRN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TRN has a Return On Invested Capital (8.06%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is below the industry average of 9.01%.
The 3 year average ROIC (5.42%) for TRN is below the current ROIC(8.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.24% | ||
| ROIC | 8.06% |
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's Profit Margin of 29.77% is amongst the best of the industry. TRN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
TRN's Operating Margin of 46.98% is amongst the best of the industry. TRN outperforms 100.00% 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 has a Gross Margin of 80.98%. This is amongst the best in the industry. TRN outperforms 93.33% 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 | 46.98% | ||
| PM (TTM) | 29.77% | ||
| GM | 80.98% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRN is still creating some value.
Compared to 1 year ago, TRN has about the same amount of shares outstanding.
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
Based on the Altman-Z score of 1.29, we must say that TRN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, TRN is doing worse than 60.00% of the companies in the same industry.
A Debt/Equity ratio of 1.74 is on the high side and indicates that TRN has dependencies on debt financing.
The Debt to Equity ratio of TRN (1.74) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC1.39
WACC5.8%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TRN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, TRN is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that TRN may have some problems paying its short term obligations.
TRN has a Quick ratio of 0.89. This is comparable to the rest of the industry: TRN outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
TRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.81%, which is quite good.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
Looking at the last year, TRN shows a quite strong growth in Revenue. The Revenue has grown by 14.09% in the last year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%1.41%
Revenue 1Y (TTM)14.09%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%5.09%
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 2.64% on average per year.
Based on estimates for the next years, TRN will show a small growth in Revenue. The Revenue will grow by 6.25% on average per year.
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.64%
Revenue Next Year7.62%
Revenue Next 2Y7.83%
Revenue Next 3Y7.61%
Revenue Next 5Y6.25%
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 decreasing.
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
The Price/Earnings ratio is 17.07, which indicates a rather expensive current valuation of TRN.
Compared to the rest of the industry, the Price/Earnings ratio of TRN is on the same level as its industry peers.
TRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 16.28, the valuation of TRN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN is on the same level as its industry peers.
TRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
TRN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
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)47.62
PEG (5Y)2.51
EPS Next 2Y2.61%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.41, TRN pays a bit more dividend than its industry peers.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
43.22% 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.
DP43.22%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
BIT:TRN (6/18/2025, 5:36:15 PM)
8.878
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners24.25%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.84B
Analysts56.15
Price Target8.84 (-0.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend0.34
Dividend Growth(5Y)7.81%
DP43.22%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.44%
Min EPS beat(2)4.64%
Max EPS beat(2)10.24%
EPS beat(4)4
Avg EPS beat(4)8.7%
Min EPS beat(4)4.64%
Max EPS beat(4)15.27%
EPS beat(8)4
Avg EPS beat(8)-12.55%
EPS beat(12)7
Avg EPS beat(12)-8.27%
EPS beat(16)7
Avg EPS beat(16)-6.57%
Revenue beat(2)2
Avg Revenue beat(2)6.6%
Min Revenue beat(2)2.53%
Max Revenue beat(2)10.66%
Revenue beat(4)4
Avg Revenue beat(4)4.24%
Min Revenue beat(4)1.74%
Max Revenue beat(4)10.66%
Revenue beat(8)8
Avg Revenue beat(8)3.56%
Revenue beat(12)11
Avg Revenue beat(12)18.18%
Revenue beat(16)15
Avg Revenue beat(16)38.54%
PT rev (1m)1.67%
PT rev (3m)4.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 16.28 | ||
| P/S | 3.32 | ||
| P/FCF | N/A | ||
| P/OCF | 12.15 | ||
| P/B | 2.37 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)0.52
EY5.86%
EPS(NY)0.55
Fwd EY6.14%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)0.73
OCFY8.23%
SpS2.67
BVpS3.74
TBVpS3.25
PEG (NY)47.62
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.24% | ||
| ROCE | 12.41% | ||
| ROIC | 8.06% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 9.71% | ||
| OM | 46.98% | ||
| PM (TTM) | 29.77% | ||
| GM | 80.98% | ||
| 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%
ROICexcg growth 3Y2.03%
ROICexcg 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 299.45% | ||
| Cap/Sales | 48.9% | ||
| Interest Coverage | 6.8 | ||
| Cash Conversion | 43.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.29 |
F-Score6
WACC5.8%
ROIC/WACC1.39
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)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%1.41%
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.64%
Revenue 1Y (TTM)14.09%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%5.09%
Revenue Next Year7.62%
Revenue Next 2Y7.83%
Revenue Next 3Y7.61%
Revenue Next 5Y6.25%
EBIT growth 1Y25.79%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.32%
EBIT Next 3Y24.09%
EBIT Next 5Y15.5%
FCF growth 1Y2.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.38%
OCF growth 3Y20.84%
OCF growth 5Y2.54%