TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
TRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Electric Utilities industry. While TRN belongs to the best of the industry regarding profitability, there are concerns on its financial health. TRN has a decent growth rate and is not valued too expensively. TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
In the past year TRN had a positive cash flow from operations.
TRN had positive earnings in each of the past 5 years.
Each year in the past 5 years TRN had a positive operating cash flow.
1.2 Ratios
TRN has a Return On Assets of 6.11%. This is amongst the best in the industry. TRN outperforms 81.25% of its industry peers.
The Return On Equity of TRN (20.89%) is better than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 8.11%, TRN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRN is below the industry average of 8.70%.
The last Return On Invested Capital (8.11%) for TRN is above the 3 year average (5.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 20.89% | ||
| ROIC | 8.11% |
ROA(3y)3.69%
ROA(5y)3.82%
ROE(3y)14.94%
ROE(5y)16.17%
ROIC(3y)5.32%
ROIC(5y)5.22%
1.3 Margins
The Profit Margin of TRN (30.25%) is better than 100.00% of its industry peers.
TRN's Profit Margin has declined in the last couple of years.
The Operating Margin of TRN (46.06%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of TRN has declined.
The Gross Margin of TRN (80.66%) is better than 93.75% of its industry peers.
In the last couple of years the Gross Margin of TRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.06% | ||
| PM (TTM) | 30.25% | ||
| GM | 80.66% |
OM growth 3Y-2.41%
OM growth 5Y-2.11%
PM growth 3Y-4.97%
PM growth 5Y-1.83%
GM growth 3Y-0.98%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
TRN 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, TRN has about the same amount of shares outstanding.
TRN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TRN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN has a Altman-Z score (1.30) which is comparable to the rest of the industry.
TRN has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
TRN has a Debt to Equity ratio (1.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC1.47
WACC5.5%
2.3 Liquidity
TRN has a Current Ratio of 0.93. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.93, TRN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that TRN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, TRN is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
TRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.88%, which is quite good.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.60% yearly.
Looking at the last year, TRN shows a quite strong growth in Revenue. The Revenue has grown by 13.65% in the last year.
TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.56% yearly.
EPS 1Y (TTM)13.88%
EPS 3Y3.79%
EPS 5Y4.6%
EPS Q2Q%18.18%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y9.52%
Revenue growth 5Y6.56%
Sales Q2Q%17.22%
3.2 Future
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
TRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.04% yearly.
EPS Next Y19.76%
EPS Next 2Y6.74%
EPS Next 3Y6.96%
EPS Next 5Y5%
Revenue Next Year16.29%
Revenue Next 2Y9.44%
Revenue Next 3Y9.05%
Revenue Next 5Y8.04%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.93, TRN is valued correctly.
TRN's Price/Earnings is on the same level as the industry average.
TRN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.63, TRN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TRN to the average of the S&P500 Index (22.10), we can say TRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
TRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TRN may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)3.24
EPS Next 2Y6.74%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is a higher than the industry average which is at 4.71.
Compared to an average S&P500 Dividend Yield of 2.33, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
On average, the dividend of TRN grows each year by 8.33%, which is quite nice.
Dividend Growth(5Y)8.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
44.99% of the earnings are spent on dividend by TRN. This is a bit on the high side, but may be sustainable.
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.99%
EPS Next 2Y6.74%
EPS Next 3Y6.96%
BIT:TRN (3/7/2025, 7:00:00 PM)
7.766
+0.14 (+1.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.92%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.61B
Analysts56.92
Price Target8.49 (9.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.33
Dividend Growth(5Y)8.33%
DP44.99%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.96%
Min EPS beat(2)4.64%
Max EPS beat(2)15.27%
EPS beat(4)2
Avg EPS beat(4)-4.81%
Min EPS beat(4)-37.77%
Max EPS beat(4)15.27%
EPS beat(8)3
Avg EPS beat(8)-15.04%
EPS beat(12)5
Avg EPS beat(12)-9.83%
EPS beat(16)6
Avg EPS beat(16)-6.94%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)1.74%
Max Revenue beat(2)2.04%
Revenue beat(4)4
Avg Revenue beat(4)2.86%
Min Revenue beat(4)1.31%
Max Revenue beat(4)6.33%
Revenue beat(8)7
Avg Revenue beat(8)13.7%
Revenue beat(12)11
Avg Revenue beat(12)42.35%
Revenue beat(16)15
Avg Revenue beat(16)55.62%
PT rev (1m)0%
PT rev (3m)-0.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 15.63 | ||
| P/S | 3.11 | ||
| P/FCF | N/A | ||
| P/OCF | 12.77 | ||
| P/B | 2.15 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)0.52
EY6.7%
EPS(NY)0.5
Fwd EY6.4%
FCF(TTM)-0.62
FCFYN/A
OCF(TTM)0.61
OCFY7.83%
SpS2.5
BVpS3.61
TBVpS3.17
PEG (NY)0.76
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 20.89% | ||
| ROCE | 11.95% | ||
| ROIC | 8.11% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 9.76% | ||
| OM | 46.06% | ||
| PM (TTM) | 30.25% | ||
| GM | 80.66% | ||
| FCFM | N/A |
ROA(3y)3.69%
ROA(5y)3.82%
ROE(3y)14.94%
ROE(5y)16.17%
ROIC(3y)5.32%
ROIC(5y)5.22%
ROICexc(3y)6.13%
ROICexc(5y)6.07%
ROICexgc(3y)6.46%
ROICexgc(5y)6.37%
ROCE(3y)8.06%
ROCE(5y)7.78%
ROICexcg growth 3Y-0.31%
ROICexcg growth 5Y-3.15%
ROICexc growth 3Y-0.62%
ROICexc growth 5Y-3.29%
OM growth 3Y-2.41%
OM growth 5Y-2.11%
PM growth 3Y-4.97%
PM growth 5Y-1.83%
GM growth 3Y-0.98%
GM growth 5Y-0.38%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 299.88% | ||
| Cap/Sales | 49.34% | ||
| Interest Coverage | 6.77 | ||
| Cash Conversion | 38.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.3 |
F-Score6
WACC5.5%
ROIC/WACC1.47
Cap/Depr(3y)248.48%
Cap/Depr(5y)231.28%
Cap/Sales(3y)63.18%
Cap/Sales(5y)59.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.88%
EPS 3Y3.79%
EPS 5Y4.6%
EPS Q2Q%18.18%
EPS Next Y19.76%
EPS Next 2Y6.74%
EPS Next 3Y6.96%
EPS Next 5Y5%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y9.52%
Revenue growth 5Y6.56%
Sales Q2Q%17.22%
Revenue Next Year16.29%
Revenue Next 2Y9.44%
Revenue Next 3Y9.05%
Revenue Next 5Y8.04%
EBIT growth 1Y17.84%
EBIT growth 3Y6.88%
EBIT growth 5Y4.31%
EBIT Next Year83.48%
EBIT Next 3Y27.4%
EBIT Next 5Y19.03%
FCF growth 1Y-2798.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.49%
OCF growth 3Y4.84%
OCF growth 5Y-3.65%