TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - IT0003242622 - Common Stock
8.596 EUR
-0.04 (-0.51%)
Taking everything into account, TRN scores 5 out of 10 in our fundamental rating. TRN was compared to 16 industry peers in the Electric Utilities industry. While TRN has a great profitability rating, there are quite some concerns on its financial health. TRN has a correct valuation and a medium growth rate. Finally TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
TRN had a positive operating cash flow in the past year.
TRN had positive earnings in each of the past 5 years.
In the past 5 years TRN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.70%, TRN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
TRN has a Return On Equity of 21.30%. This is in the better half of the industry: TRN outperforms 68.75% of its industry peers.
TRN has a Return On Invested Capital (8.22%) 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 8.55%.
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
The Profit Margin of TRN (28.88%) is better than 100.00% of its industry peers.
TRN's Profit Margin has declined in the last couple of years.
TRN has a better Operating Margin (47.14%) than 93.75% of its industry peers.
In the last couple of years the Operating Margin of TRN has remained more or less at the same level.
The Gross Margin of TRN (80.75%) is better than 93.75% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRN is still creating some value.
TRN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRN has less shares outstanding
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
TRN has an Altman-Z score of 1.21. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
TRN has a Altman-Z score of 1.21. This is in the lower half of the industry: TRN underperforms 62.50% of its industry peers.
A Debt/Equity ratio of 1.78 is on the high side and indicates that TRN has dependencies on debt 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC1.49
WACC5.53%
2.3 Liquidity
TRN has a Current 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.
Looking at the Current ratio, with a value of 0.81, TRN is in line with its industry, outperforming 43.75% 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.
The Quick ratio of TRN (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.87%, which is quite good.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
The Revenue has grown by 10.38% in the past year. This is quite good.
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)10.87%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
3.2 Future
The Earnings Per Share is expected to grow by 2.76% 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 6.43% on average per year.
EPS Next Y3.82%
EPS Next 2Y2.52%
EPS Next 3Y3.29%
EPS Next 5Y2.76%
Revenue Next Year10.61%
Revenue Next 2Y9.17%
Revenue Next 3Y9.64%
Revenue Next 5Y6.43%
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
A Price/Earnings ratio of 15.63 indicates a correct valuation of TRN.
TRN's Price/Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, TRN is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.79 indicates a correct valuation of TRN.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRN to the average of the S&P500 Index (22.72), we can say TRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.79 |
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 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TRN may justify a higher PE ratio.
PEG (NY)4.09
PEG (5Y)2.3
EPS Next 2Y2.52%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is a higher than the industry average which is at 4.32.
Compared to an average S&P500 Dividend Yield of 2.35, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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 2Y2.52%
EPS Next 3Y3.29%
BIT:TRN (8/29/2025, 7:00:00 PM)
8.596
-0.04 (-0.51%)
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 Cap17.28B
Analysts56.8
Price Target8.94 (4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)0.49%
PT rev (3m)2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.45%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.79 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 8.71 | ||
| P/B | 2.3 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)0.55
EY6.4%
EPS(NY)0.54
Fwd EY6.33%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY11.48%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)4.09
PEG (5Y)2.3
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%
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-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 | 1.21 |
F-Score5
WACC5.53%
ROIC/WACC1.49
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)10.87%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
EPS Next Y3.82%
EPS Next 2Y2.52%
EPS Next 3Y3.29%
EPS Next 5Y2.76%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
Revenue Next Year10.61%
Revenue Next 2Y9.17%
Revenue Next 3Y9.64%
Revenue Next 5Y6.43%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.32%
EBIT Next 3Y24.09%
EBIT Next 5Y16.04%
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%