TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
Overall TRN gets a fundamental rating of 4 out of 10. We evaluated TRN against 15 industry peers in the Electric Utilities industry. While TRN is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, TRN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
TRN had positive earnings in each of the past 5 years.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.43%, TRN is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
TRN has a Return On Equity (22.00%) which is in line with its industry peers.
TRN has a Return On Invested Capital (8.73%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 22% | ||
| ROIC | 8.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TRN has a Profit Margin of 29.56%. This is amongst the best in the industry. TRN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
The Operating Margin of TRN (46.47%) is better than 100.00% of its industry peers.
TRN's Operating Margin has declined in the last couple of years.
TRN has a Gross Margin of 81.87%. 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 | 46.47% | ||
| PM (TTM) | 29.56% | ||
| GM | 81.87% |
OM growth 3Y-1.02%
OM growth 5Y-1.8%
PM growth 3Y-2.52%
PM growth 5Y-2.71%
GM growth 3Y0.78%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
TRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TRN has an Altman-Z score of 1.41. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, TRN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.61 is on the high side and indicates that TRN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.61, TRN perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC1.5
WACC5.82%
2.3 Liquidity
A Current Ratio of 0.93 indicates that TRN may have some problems paying its short term obligations.
TRN has a Current ratio of 0.93. This is comparable to the rest of the industry: TRN outperforms 46.67% of its industry peers.
TRN has a Quick Ratio of 0.93. 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's Quick ratio of 0.90 is in line compared to the rest of the industry. TRN outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.81% over the past year.
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 17.58% in the last year.
Measured over the past years, TRN shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
EPS 1Y (TTM)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0.83%
Revenue 1Y (TTM)17.58%
Revenue growth 3Y13.24%
Revenue growth 5Y9.97%
Sales Q2Q%9.92%
3.2 Future
The Earnings Per Share is expected to grow by 1.46% on average over the next years.
Based on estimates for the next years, TRN will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y1.46%
Revenue Next Year6.09%
Revenue Next 2Y7.1%
Revenue Next 3Y6.87%
Revenue Next 5Y5.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 16.86 indicates a correct valuation of TRN.
The rest of the industry has a similar Price/Earnings ratio as TRN.
TRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of TRN.
TRN's Price/Forward Earnings ratio is in line with the industry average.
TRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)47.03
PEG (5Y)2.48
EPS Next 2Y2.61%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.64%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.55, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
On average, the dividend of TRN grows each year by 8.33%, which is quite nice.
Dividend Growth(5Y)8.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
BIT:TRN (4/30/2025, 7:00:00 PM)
8.768
+0.09 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.92%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.62B
Analysts56.92
Price Target8.61 (-1.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend0.33
Dividend Growth(5Y)8.33%
DP0%
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)1.33%
PT rev (3m)1.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.54%
EPS NY rev (3m)5.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 16.87 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.43 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.52
EY5.93%
EPS(NY)0.52
Fwd EY5.93%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.69
BVpS3.61
TBVpS3.17
PEG (NY)47.03
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 22% | ||
| ROCE | 12.99% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 10.51% | ||
| OM | 46.47% | ||
| PM (TTM) | 29.56% | ||
| GM | 81.87% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.02%
OM growth 5Y-1.8%
PM growth 3Y-2.52%
PM growth 5Y-2.71%
GM growth 3Y0.78%
GM growth 5Y-0.11%
F-ScoreN/A
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.41 |
F-ScoreN/A
WACC5.82%
ROIC/WACC1.5
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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%0.83%
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y1.46%
Revenue 1Y (TTM)17.58%
Revenue growth 3Y13.24%
Revenue growth 5Y9.97%
Sales Q2Q%9.92%
Revenue Next Year6.09%
Revenue Next 2Y7.1%
Revenue Next 3Y6.87%
Revenue Next 5Y5.59%
EBIT growth 1Y25.29%
EBIT growth 3Y12.09%
EBIT growth 5Y8%
EBIT Next Year60.05%
EBIT Next 3Y23.4%
EBIT Next 5Y14.47%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A