TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to TRN. TRN was compared to 17 industry peers in the Electric Utilities industry. TRN has an excellent profitability rating, but there are concerns on its financial health. TRN has a correct valuation and a medium growth rate. TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
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 76.47% of its industry peers.
TRN's Return On Equity of 21.24% is fine compared to the rest of the industry. TRN outperforms 70.59% of its industry peers.
TRN's Return On Invested Capital of 8.06% is in line compared to the rest of the industry. TRN outperforms 58.82% of its industry peers.
TRN had an Average Return On Invested Capital over the past 3 years of 5.42%. This is below the industry average of 8.44%.
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 has a better Profit Margin (29.77%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
TRN has a better Operating Margin (46.98%) than 100.00% of its industry peers.
TRN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 80.98%, TRN belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
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.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
The number of shares outstanding for TRN has been reduced compared to 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 1.27, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN has a Altman-Z score (1.27) which is comparable to the rest of the industry.
TRN has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.74, TRN is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC1.46
WACC5.51%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TRN may have some problems paying its short term obligations.
TRN's Current ratio of 0.91 is in line compared to the rest of the industry. TRN outperforms 41.18% of its industry peers.
TRN has a Quick Ratio of 0.91. 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 0.89 is in line compared to the rest of the industry. TRN outperforms 47.06% 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.
Measured over the past 5 years, TRN shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
Looking at the last year, TRN shows a quite strong growth in Revenue. The Revenue has grown by 15.80% in the last year.
Measured over the past years, TRN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
EPS 1Y (TTM)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
3.2 Future
The Earnings Per Share is expected to grow by 2.27% 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 5.87% on average per year.
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.27%
Revenue Next Year10.12%
Revenue Next 2Y9.1%
Revenue Next 3Y9.38%
Revenue Next 5Y5.87%
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.
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
Based on the Price/Earnings ratio of 16.34, the valuation of TRN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 64.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, TRN is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.58, which indicates a correct valuation of TRN.
The rest of the industry has a similar Price/Forward Earnings ratio as TRN.
When comparing the Price/Forward Earnings ratio of TRN to the average of the S&P500 Index (35.28), we can say TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRN may justify a higher PE ratio.
PEG (NY)45.57
PEG (5Y)2.4
EPS Next 2Y2.61%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.34, TRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
On average, the dividend of TRN grows each year by 7.81%, which is quite nice.
Dividend Growth(5Y)7.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRN pays out 43.22% of its income as dividend. 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 (8/7/2025, 7:00:00 PM)
8.496
0 (-0.02%)
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 Cap17.08B
Analysts56.92
Price Target8.9 (4.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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)0.63%
PT rev (3m)3.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.32%
Revenue NY rev (3m)3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 15.58 | ||
| P/S | 3.18 | ||
| P/FCF | N/A | ||
| P/OCF | 11.63 | ||
| P/B | 2.27 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)0.52
EY6.12%
EPS(NY)0.55
Fwd EY6.42%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)0.73
OCFY8.6%
SpS2.67
BVpS3.74
TBVpS3.25
PEG (NY)45.57
PEG (5Y)2.4
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 | 1.27 |
F-Score6
WACC5.51%
ROIC/WACC1.46
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%16.79%
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.27%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
Revenue Next Year10.12%
Revenue Next 2Y9.1%
Revenue Next 3Y9.38%
Revenue Next 5Y5.87%
EBIT growth 1Y25.79%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.32%
EBIT Next 3Y24.09%
EBIT Next 5Y15.78%
FCF growth 1Y2.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.38%
OCF growth 3Y20.84%
OCF growth 5Y2.54%