SNAM SPA (SRG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:SRG • IT0003153415
5.798 EUR
+0.04 (+0.62%)
Last: Jan 30, 2026, 05:36 PM
Overall SRG gets a fundamental rating of 4 out of 10. We evaluated SRG against 5 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SRG was profitable.
- In the past year SRG had a positive cash flow from operations.
- 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 an excellent Return On Assets value of 6.13%, SRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of SRG (24.13%) is better than 80.00% of its industry peers.
- SRG's Return On Invested Capital of 7.18% is in line compared to the rest of the industry. SRG outperforms 60.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SRG is in line with the industry average of 6.44%.
- The last Return On Invested Capital (7.18%) for SRG is above the 3 year average (4.63%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 40.11%, SRG belongs to the top 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 (49.28%) than 100.00% of its industry peers.
- SRG's Operating Margin has declined in the last couple of years.
- SRG has a Gross Margin (51.90%) which 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 | 49.28% | ||
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SRG is creating some value.
- Compared to 1 year ago, SRG has about the same amount of shares outstanding.
- Compared to 5 years ago, SRG has more shares outstanding
- SRG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.00, we must say that SRG is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of SRG (1.00) is worse 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.
- The Debt to Equity ratio of SRG (1.87) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC1.43
WACC5.03%
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.
- With a Current ratio value of 0.90, SRG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- 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's Quick ratio of 0.66 is on the low side compared to the rest of the industry. SRG is outperformed by 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.
- The Earnings Per Share has been growing slightly by 2.97% on average over the past years.
- The Revenue has decreased by -2.72% in the past year.
- The Revenue has been growing slightly by 6.01% on average over the past years.
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
- Based on estimates for the next years, SRG will show a small growth in Earnings Per Share. The EPS will grow by 4.19% on average per year.
- Based on estimates for the next years, SRG will show a small growth in Revenue. The Revenue will grow by 3.04% on average per year.
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.
- 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
- SRG is valuated correctly with a Price/Earnings ratio of 14.14.
- Based on the Price/Earnings ratio, SRG is valued a bit more expensive than 60.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SRG to the average of the S&P500 Index (28.39), we can say SRG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 13.72, SRG is valued correctly.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, SRG is valued a bit cheaper.
| 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
- SRG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of SRG 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.
- SRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- The dividend of SRG is growing, but the earnings are growing slower. 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%.