TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - BIT:TRN - IT0003242622 - Common Stock
9.016 EUR
+0.07 (+0.83%)
TRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 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 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.
In the past year TRN had a positive cash flow from operations.
In the past 5 years TRN has always been profitable.
TRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRN (5.70%) is better than 72.22% of its industry peers.
The Return On Equity of TRN (21.30%) is better than 61.11% of its industry peers.
The Return On Invested Capital of TRN (8.22%) is better than 66.67% 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 7.70%.
The last Return On Invested Capital (8.22%) for TRN is above the 3 year average (5.42%), which is a sign of increasing profitability.
| 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's Profit Margin of 28.88% 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 47.14% is amongst the best of the industry. TRN outperforms 94.44% 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 better Gross Margin (80.75%) than 88.89% 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
TRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TRN has less shares outstanding
TRN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.23, 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 1.23, TRN is in line with its industry, outperforming 44.44% 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC1.46
WACC5.62%
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.
TRN has a Current ratio of 0.81. This is in the lower half of the industry: TRN underperforms 61.11% of its industry peers.
A Quick Ratio of 0.79 indicates that TRN may have some problems paying its short term obligations.
TRN has a Quick ratio (0.79) which is in line with 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 grown by an nice 10.87% over the past year.
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.
The Revenue has grown by 10.38% in the past year. This is quite good.
TRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
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
Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 3.40% on average per year.
TRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y4.51%
EPS Next 2Y2.68%
EPS Next 3Y3.27%
EPS Next 5Y3.4%
Revenue Next Year11.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.64%
Revenue Next 5Y6.36%
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
Based on the Price/Earnings ratio of 16.39, the valuation of TRN can be described as correct.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 61.11% of the companies in the same industry.
TRN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.51, TRN is valued correctly.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 61.11% of the companies in the same industry.
| 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)3.64
PEG (5Y)2.41
EPS Next 2Y2.68%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is a higher than the industry average which is at 3.85.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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 49.65% 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.
DP49.65%
EPS Next 2Y2.68%
EPS Next 3Y3.27%
BIT:TRN (10/17/2025, 7:00:00 PM)
9.016
+0.07 (+0.83%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners31.15%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.12B
Analysts65.22
Price Target9.09 (0.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)0.71%
PT rev (3m)2.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.28%
EPS NY rev (1m)0.66%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 16.51 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 9.14 | ||
| P/B | 2.41 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)0.55
EY6.1%
EPS(NY)0.55
Fwd EY6.06%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY10.94%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)3.64
PEG (5Y)2.41
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 | 1.23 |
F-Score5
WACC5.62%
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)10.87%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
EPS Next Y4.51%
EPS Next 2Y2.68%
EPS Next 3Y3.27%
EPS Next 5Y3.4%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
Revenue Next Year11.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.64%
Revenue Next 5Y6.36%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.98%
EBIT Next 3Y24.21%
EBIT Next 5Y15.97%
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%