SNAM SPA (SRG.MI) Stock Fundamental Analysis
BIT:SRG - Euronext Milan - IT0003153415 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to SRG. SRG was compared to 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
SRG had positive earnings in the past year.
In the past 5 years SRG has always been profitable.
In multiple years SRG reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.85%, SRG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
SRG has a better Return On Equity (24.77%) than 80.00% of its industry peers.
SRG has a Return On Invested Capital (7.27%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 24.77% | ||
| ROIC | 7.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SRG has a Profit Margin of 36.02%. 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.
SRG's Operating Margin of 48.25% is amongst the best of the industry. SRG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.25% | ||
| PM (TTM) | 36.02% | ||
| GM | N/A |
OM growth 3Y2.06%
OM growth 5Y-3.42%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3YN/A
GM growth 5YN/A
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.
There is no outstanding debt for SRG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SRG has an Altman-Z score of 0.94. This is a bad value and indicates that SRG is not financially healthy and even has some risk of bankruptcy.
SRG has a Altman-Z score of 0.94. This is amonst the worse of the industry: SRG underperforms 80.00% of its industry peers.
SRG has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SRG (2.20) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC1.47
WACC4.94%
2.3 Liquidity
A Current Ratio of 0.79 indicates that SRG may have some problems paying its short term obligations.
SRG has a Current ratio of 0.79. This is in the lower half of the industry: SRG underperforms 60.00% of its industry peers.
A Quick Ratio of 0.56 indicates that SRG may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, SRG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.70% over the past year.
SRG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.97% yearly.
The Revenue for SRG has decreased by -15.86% in the past year. This is quite bad
SRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)11.7%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%45%
Revenue 1Y (TTM)-15.86%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%-38.32%
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 2.63% on average per year.
SRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y2.63%
Revenue Next Year5.24%
Revenue Next 2Y6.17%
Revenue Next 3Y4.31%
Revenue Next 5Y2.82%
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.
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
SRG is valuated correctly with a Price/Earnings ratio of 13.04.
Compared to the rest of the industry, the Price/Earnings ratio of SRG indicates a slightly more expensive valuation: SRG is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, SRG is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.36, SRG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SRG is on the same level as its industry peers.
SRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.63
PEG (5Y)4.39
EPS Next 2Y3.86%
EPS Next 3Y4.17%
5. Dividend
5.1 Amount
SRG has a Yearly Dividend Yield of 5.95%, which is a nice return.
SRG's Dividend Yield is a higher than the industry average which is at 5.20.
Compared to an average S&P500 Dividend Yield of 2.51, SRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
BIT:SRG (4/24/2025, 5:36:15 PM)
4.955
+0.05 (+1.12%)
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 Cap16.65B
Analysts73.6
Price Target5.32 (7.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
Yearly Dividend0.28
Dividend Growth(5Y)5.03%
DP0%
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)0.78%
PT rev (3m)2.66%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.73%
EPS NY rev (3m)6.29%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.36 | ||
| P/S | 3.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.15 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.38
EY7.67%
EPS(NY)0.4
Fwd EY8.09%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS1.58
BVpS2.3
TBVpS1.86
PEG (NY)2.63
PEG (5Y)4.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 24.77% | ||
| ROCE | 10.94% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 8.36% | ||
| OM | 48.25% | ||
| PM (TTM) | 36.02% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.06%
OM growth 5Y-3.42%
PM growth 3Y-8.04%
PM growth 5Y-2.91%
GM growth 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.94 |
F-ScoreN/A
WACC4.94%
ROIC/WACC1.47
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.7%
EPS 3Y-5.86%
EPS 5Y2.97%
EPS Q2Q%45%
EPS Next Y4.97%
EPS Next 2Y3.86%
EPS Next 3Y4.17%
EPS Next 5Y2.63%
Revenue 1Y (TTM)-15.86%
Revenue growth 3Y2.67%
Revenue growth 5Y6.01%
Sales Q2Q%-38.32%
Revenue Next Year5.24%
Revenue Next 2Y6.17%
Revenue Next 3Y4.31%
Revenue Next 5Y2.82%
EBIT growth 1Y15.8%
EBIT growth 3Y4.78%
EBIT growth 5Y2.38%
EBIT Next Year65.07%
EBIT Next 3Y22.79%
EBIT Next 5Y14.24%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A