SNAM SPA (SRG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:SRG • IT0003153415
5.798 EUR
+0.04 (+0.62%)
Last: Jan 30, 2026, 07:00 PM
SRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 5 industry peers in the Gas Utilities industry. There are concerns on the financial health of SRG while its profitability can be described as average. SRG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- SRG had positive earnings in the past year.
- In the past year SRG had a positive cash flow from operations.
- Each year in the past 5 years SRG has been profitable.
- Of the past 5 years SRG 4 years had a positive operating cash flow.
1.2 Ratios
- SRG has a Return On Assets of 6.13%. This is amongst the best in the industry. SRG outperforms 100.00% of its industry peers.
- The Return On Equity of SRG (24.13%) is better than 80.00% of its industry peers.
- With a Return On Invested Capital value of 7.18%, SRG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SRG is in line with the industry average of 6.44%.
- The 3 year average ROIC (4.63%) for SRG is below the current ROIC(7.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 24.13% | ||
| ROIC | 7.18% |
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
- The Profit Margin of SRG (40.11%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of SRG has declined.
- Looking at the Operating Margin, with a value of 49.28%, SRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- SRG's Operating Margin has declined in the last couple of years.
- SRG has a Gross Margin (51.90%) which is in line with its industry peers.
- 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 | 49.28% | ||
| PM (TTM) | 40.11% | ||
| GM | 51.9% |
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.
- Compared to 1 year ago, SRG has about the same amount of shares outstanding.
- SRG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SRG has a worse debt to assets ratio.
2.2 Solvency
- SRG has an Altman-Z score of 1.00. This is a bad value and indicates that SRG is not financially healthy and even has some risk of bankruptcy.
- SRG has a worse Altman-Z score (1.00) than 60.00% of its industry peers.
- SRG has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
- SRG has a Debt to Equity ratio of 1.87. This is in the lower half of the industry: SRG underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC1.42
WACC5.04%
2.3 Liquidity
- SRG has a Current Ratio of 0.90. This is a bad value and indicates that SRG is not financially healthy enough and could expect problems in meeting its short term obligations.
- SRG's Current ratio of 0.90 is in line compared to the rest of the industry. SRG outperforms 60.00% of its industry peers.
- SRG has a Quick Ratio of 0.90. This is a bad value and indicates that SRG is not financially healthy enough and could expect problems in meeting its short term obligations.
- SRG has a Quick ratio of 0.66. This is amonst the worse of the industry: SRG underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.65% over the past year.
- 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.
- The Revenue has decreased by -2.72% in the past 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)14.65%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%9.89%
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%-11.65%
3.2 Future
- SRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.19% yearly.
- SRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.04% yearly.
EPS Next Y10.01%
EPS Next 2Y5.16%
EPS Next 3Y4.72%
EPS Next 5Y4.19%
Revenue Next Year-0.84%
Revenue Next 2Y2.72%
Revenue Next 3Y3.52%
Revenue Next 5Y3.04%
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 accelerating.
- 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 14.14 indicates a correct valuation of SRG.
- 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.
- When comparing the Price/Earnings ratio of SRG to the average of the S&P500 Index (28.30), we can say SRG is valued rather cheaply.
- A Price/Forward Earnings ratio of 13.72 indicates a correct valuation of SRG.
- Based on the Price/Forward Earnings ratio, SRG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- SRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- SRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)4.76
EPS Next 2Y5.16%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
- SRG has a Yearly Dividend Yield of 5.19%, which is a nice return.
- SRG's Dividend Yield is a higher than the industry average which is at 4.68.
- Compared to an average S&P500 Dividend Yield of 1.82, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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
- 43.67% of the earnings are spent on dividend by SRG. This is a bit on the high side, but may be sustainable.
- SRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.67%
EPS Next 2Y5.16%
EPS Next 3Y4.72%
SNAM SPA / SRG.MI FAQ
What is the ChartMill fundamental rating of SNAM SPA (SRG.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SRG.MI.
What is the valuation status for SRG stock?
ChartMill assigns a valuation rating of 4 / 10 to SNAM SPA (SRG.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for SNAM SPA?
SNAM SPA (SRG.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for SRG stock?
The Price/Earnings (PE) ratio for SNAM SPA (SRG.MI) is 14.14 and the Price/Book (PB) ratio is 2.13.
How sustainable is the dividend of SNAM SPA (SRG.MI) stock?
The dividend rating of SNAM SPA (SRG.MI) is 6 / 10 and the dividend payout ratio is 43.67%.