SNAM SPA (SRG.MI) Stock Fundamental Analysis
BIT:SRG - Euronext Milan - IT0003153415 - Common Stock - Currency: EUR
SRG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 16 industry peers in the Gas Utilities industry. SRG has a medium profitability rating, but doesn't score so well on its financial health evaluation. SRG is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SRG was profitable.
SRG had a positive operating cash flow in the past year.
Each year in the past 5 years SRG has been profitable.
SRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.35%, SRG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Return On Equity of SRG (21.44%) is better than 80.00% of its industry peers.
SRG has a Return On Invested Capital (7.17%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SRG is below the industry average of 7.45%.
The last Return On Invested Capital (7.17%) for SRG is above the 3 year average (4.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 21.44% | ||
| ROIC | 7.17% |
ROA(3y)2.99%
ROA(5y)3.75%
ROE(3y)12.65%
ROE(5y)15.15%
ROIC(3y)4.63%
ROIC(5y)4.83%
1.3 Margins
With an excellent Profit Margin value of 36.00%, SRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SRG has declined.
SRG has a better Operating Margin (49.00%) than 100.00% of its industry peers.
SRG's Operating Margin has declined in the last couple of years.
The Gross Margin of SRG (53.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49% | ||
| PM (TTM) | 36% | ||
| GM | 53.67% |
OM growth 3Y3.22%
OM growth 5Y-2.76%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3Y4.14%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
SRG 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 SRG remains at a similar level compared to 1 year ago.
SRG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SRG is higher compared to a year ago.
2.2 Solvency
SRG has an Altman-Z score of 0.89. This is a bad value and indicates that SRG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SRG (0.89) is worse than 80.00% of its industry peers.
SRG has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SRG (1.83) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC1.48
WACC4.85%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SRG may have some problems paying its short term obligations.
The Current ratio of SRG (0.83) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.62 indicates that SRG may have some problems paying its short term obligations.
The Quick ratio of SRG (0.62) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.80%, which is quite good.
Measured over the past 5 years, SRG shows a small growth in Earnings Per Share. The EPS has been growing by 2.97% on average per year.
Looking at the last year, SRG shows a very negative growth in Revenue. The Revenue has decreased by -13.55% in the last year.
SRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)15.8%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%21.21%
Revenue 1Y (TTM)-13.55%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%8.38%
3.2 Future
SRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.25% yearly.
SRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.79% yearly.
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.25%
Revenue Next Year0.94%
Revenue Next 2Y4.28%
Revenue Next 3Y4.76%
Revenue Next 5Y2.79%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 12.86, SRG is valued correctly.
Based on the Price/Earnings ratio, SRG is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
SRG is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
SRG is valuated correctly with a Price/Forward Earnings ratio of 12.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SRG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.60. SRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than SRG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SRG does not grow enough to justify the current Price/Earnings ratio.
SRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)4.33
EPS Next 2Y3.86%
EPS Next 3Y4.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.70%, SRG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.78, SRG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
The dividend of SRG has a limited annual growth rate of 4.51%.
Dividend Growth(5Y)4.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SRG pays out 49.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.43%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
BIT:SRG (6/30/2025, 7:00:00 PM)
5.142
+0.08 (+1.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners23.72%
Inst Owner ChangeN/A
Ins Owners7.45%
Ins Owner ChangeN/A
Market Cap17.28B
Analysts72.5
Price Target5.49 (6.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend0.28
Dividend Growth(5Y)4.51%
DP49.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-13.92%
Max EPS beat(2)12.35%
EPS beat(4)2
Avg EPS beat(4)2.52%
Min EPS beat(4)-13.92%
Max EPS beat(4)12.35%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)7
Avg EPS beat(12)1.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-14.55%
Min Revenue beat(2)-25.83%
Max Revenue beat(2)-3.27%
Revenue beat(4)0
Avg Revenue beat(4)-13.77%
Min Revenue beat(4)-25.83%
Max Revenue beat(4)-3.27%
Revenue beat(8)3
Avg Revenue beat(8)3.48%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.66%
PT rev (3m)3.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 12.48 | ||
| P/S | 3.25 | ||
| P/FCF | N/A | ||
| P/OCF | 9.53 | ||
| P/B | 1.94 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)0.4
EY7.78%
EPS(NY)0.41
Fwd EY8.01%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)0.54
OCFY10.5%
SpS1.58
BVpS2.66
TBVpS2.19
PEG (NY)2.59
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 21.44% | ||
| ROCE | 10.17% | ||
| ROIC | 7.17% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 8.18% | ||
| OM | 49% | ||
| PM (TTM) | 36% | ||
| GM | 53.67% | ||
| FCFM | N/A |
ROA(3y)2.99%
ROA(5y)3.75%
ROE(3y)12.65%
ROE(5y)15.15%
ROIC(3y)4.63%
ROIC(5y)4.83%
ROICexc(3y)4.97%
ROICexc(5y)5.28%
ROICexgc(3y)5.31%
ROICexgc(5y)5.63%
ROCE(3y)6.69%
ROCE(5y)7.13%
ROICexcg growth 3Y-1.38%
ROICexcg growth 5Y-4.6%
ROICexc growth 3Y-1.53%
ROICexc growth 5Y-4.68%
OM growth 3Y3.22%
OM growth 5Y-2.76%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3Y4.14%
GM growth 5Y-0.97%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.56 | ||
| Cap/Depr | 286.08% | ||
| Cap/Sales | 52.95% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 50.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.89 |
F-Score6
WACC4.85%
ROIC/WACC1.48
Cap/Depr(3y)209.59%
Cap/Depr(5y)186.27%
Cap/Sales(3y)52.8%
Cap/Sales(5y)47.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.8%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%21.21%
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y3.25%
Revenue 1Y (TTM)-13.55%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%8.38%
Revenue Next Year0.94%
Revenue Next 2Y4.28%
Revenue Next 3Y4.76%
Revenue Next 5Y2.79%
EBIT growth 1Y17.61%
EBIT growth 3Y5.97%
EBIT growth 5Y3.08%
EBIT Next Year68.21%
EBIT Next 3Y23.17%
EBIT Next 5Y14.78%
FCF growth 1Y48.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1443.7%
OCF growth 3Y10.68%
OCF growth 5Y4.07%