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 4 industry peers in the Gas Utilities industry. While SRG is still in line with the averages on profitability rating, there are concerns on its financial health. SRG is valied quite expensively at the moment, while it does show 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.
SRG had positive earnings in each of the past 5 years.
Of the past 5 years SRG 4 years had a positive operating cash flow.
1.2 Ratios
SRG has a Return On Assets of 5.37%. This is in the better half of the industry: SRG outperforms 80.00% of its industry peers.
SRG has a Return On Equity of 22.74%. This is in the better half of the industry: SRG outperforms 80.00% of its industry peers.
SRG has a Return On Invested Capital of 6.38%. This is in the lower half of the industry: SRG underperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SRG is below the industry average of 7.35%.
The last Return On Invested Capital (6.38%) for SRG is above the 3 year average (4.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 22.74% | ||
| ROIC | 6.38% |
ROA(3y)3.65%
ROA(5y)3.96%
ROE(3y)14.87%
ROE(5y)15.81%
ROIC(3y)4.37%
ROIC(5y)4.63%
1.3 Margins
SRG has a Profit Margin of 29.60%. This is amongst the best in the industry. SRG outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of SRG has declined.
The Operating Margin of SRG (40.86%) is better than 80.00% of its industry peers.
SRG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.04%, SRG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.86% | ||
| PM (TTM) | 29.6% | ||
| GM | 44.04% |
OM growth 3Y-13.39%
OM growth 5Y-9.16%
PM growth 3Y-12.67%
PM growth 5Y-6.54%
GM growth 3Y-9.29%
GM growth 5Y-5.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SRG is creating some value.
SRG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SRG has been increased compared to 5 years ago.
Compared to 1 year ago, SRG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that SRG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.91, SRG is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 2.20 is on the high side and indicates that SRG has dependencies on debt financing.
SRG has a worse Debt to Equity ratio (2.20) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC1.37
WACC4.65%
2.3 Liquidity
A Current Ratio of 0.79 indicates that SRG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, SRG is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that SRG may have some problems paying its short term obligations.
SRG's Quick ratio of 0.56 is in line compared to the rest of the industry. SRG outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.80% over the past year.
The Earnings Per Share has been growing slightly by 3.35% on average over the past years.
SRG shows a decrease in Revenue. In the last year, the revenue decreased by -3.66%.
SRG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.64% yearly.
EPS 1Y (TTM)3.8%
EPS 3Y0.83%
EPS 5Y3.35%
EPS Q2Q%1.11%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y15.68%
Revenue growth 5Y10.64%
Sales Q2Q%1.24%
3.2 Future
The Earnings Per Share is expected to grow by 4.97% on average over the next years.
SRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y9.5%
EPS Next 2Y7.35%
EPS Next 3Y5.68%
EPS Next 5Y4.97%
Revenue Next Year-0.9%
Revenue Next 2Y2.12%
Revenue Next 3Y3.76%
Revenue Next 5Y4.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.24, 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 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of SRG.
SRG's Price/Forward Earnings ratio is in line with the industry average.
SRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRG indicates a slightly more expensive valuation: SRG is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)3.65
EPS Next 2Y7.35%
EPS Next 3Y5.68%
5. Dividend
5.1 Amount
SRG has a Yearly Dividend Yield of 6.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.49, SRG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
5.2 History
The dividend of SRG has a limited annual growth rate of 5.03%.
Dividend Growth(5Y)5.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SRG pays out 54.15% 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.
DP54.15%
EPS Next 2Y7.35%
EPS Next 3Y5.68%
BIT:SRG (3/6/2025, 1:07:40 PM)
4.408
-0.02 (-0.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner ChangeN/A
Ins Owners7.46%
Ins Owner ChangeN/A
Market Cap14.81B
Analysts73.33
Price Target5.28 (19.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
Yearly Dividend0.28
Dividend Growth(5Y)5.03%
DP54.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.83%
Min EPS beat(2)-0.35%
Max EPS beat(2)12.02%
EPS beat(4)2
Avg EPS beat(4)2.08%
Min EPS beat(4)-8.61%
Max EPS beat(4)12.02%
EPS beat(8)4
Avg EPS beat(8)-1.1%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-12.99%
Min Revenue beat(2)-16.53%
Max Revenue beat(2)-9.46%
Revenue beat(4)2
Avg Revenue beat(4)11.89%
Min Revenue beat(4)-16.53%
Max Revenue beat(4)61.75%
Revenue beat(8)5
Avg Revenue beat(8)23.33%
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)0.98%
PT rev (3m)1.53%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-6.38%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.49 | ||
| P/FCF | N/A | ||
| P/OCF | 9.04 | ||
| P/B | 1.92 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)0.36
EY8.17%
EPS(NY)0.39
Fwd EY8.94%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.49
OCFY11.06%
SpS1.77
BVpS2.3
TBVpS1.86
PEG (NY)1.29
PEG (5Y)3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 22.74% | ||
| ROCE | 10.35% | ||
| ROIC | 6.38% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 7.33% | ||
| OM | 40.86% | ||
| PM (TTM) | 29.6% | ||
| GM | 44.04% | ||
| FCFM | N/A |
ROA(3y)3.65%
ROA(5y)3.96%
ROE(3y)14.87%
ROE(5y)15.81%
ROIC(3y)4.37%
ROIC(5y)4.63%
ROICexc(3y)4.68%
ROICexc(5y)5.15%
ROICexgc(3y)4.99%
ROICexgc(5y)5.49%
ROCE(3y)6.96%
ROCE(5y)7.43%
ROICexcg growth 3Y-8.25%
ROICexcg growth 5Y-4.7%
ROICexc growth 3Y-8.23%
ROICexc growth 5Y-4.93%
OM growth 3Y-13.39%
OM growth 5Y-9.16%
PM growth 3Y-12.67%
PM growth 5Y-6.54%
GM growth 3Y-9.29%
GM growth 5Y-5.85%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 224.05% | ||
| Cap/Sales | 36.55% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 48.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.91 |
F-Score5
WACC4.65%
ROIC/WACC1.37
Cap/Depr(3y)164.8%
Cap/Depr(5y)155.48%
Cap/Sales(3y)39.08%
Cap/Sales(5y)39.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.8%
EPS 3Y0.83%
EPS 5Y3.35%
EPS Q2Q%1.11%
EPS Next Y9.5%
EPS Next 2Y7.35%
EPS Next 3Y5.68%
EPS Next 5Y4.97%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y15.68%
Revenue growth 5Y10.64%
Sales Q2Q%1.24%
Revenue Next Year-0.9%
Revenue Next 2Y2.12%
Revenue Next 3Y3.76%
Revenue Next 5Y4.64%
EBIT growth 1Y13.84%
EBIT growth 3Y0.19%
EBIT growth 5Y0.51%
EBIT Next Year86.25%
EBIT Next 3Y26.99%
EBIT Next 5Y17.92%
FCF growth 1Y-128.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.99%
OCF growth 3YN/A
OCF growth 5YN/A