TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
TRN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 17 industry peers in the Electric Utilities industry. While TRN is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, TRN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
Each year in the past 5 years TRN has been profitable.
Of the past 5 years TRN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TRN (6.43%) is better than 70.59% of its industry peers.
TRN has a Return On Equity (22.00%) which is in line with its industry peers.
TRN has a Return On Invested Capital (8.73%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 22% | ||
| ROIC | 8.73% |
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
The Profit Margin of TRN (29.56%) is better than 100.00% of its industry peers.
TRN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 46.47%, TRN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TRN has declined.
TRN has a better Gross Margin (81.87%) than 94.12% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.47% | ||
| PM (TTM) | 29.56% | ||
| GM | 81.87% |
OM growth 3Y-1.02%
OM growth 5Y-1.8%
PM growth 3Y-2.52%
PM growth 5Y-2.71%
GM growth 3Y0.78%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRN is still creating some value.
TRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN has a Altman-Z score of 1.40. This is in the better half of the industry: TRN outperforms 64.71% of its industry peers.
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 | 1.4 |
ROIC/WACC1.51
WACC5.77%
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 47.06% 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.
TRN's Quick ratio of 0.90 is in line compared to the rest of the industry. TRN outperforms 58.82% of its industry peers.
| 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 18.81%, which is quite good.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
TRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.58%.
TRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0.83%
Revenue 1Y (TTM)17.58%
Revenue growth 3Y13.24%
Revenue growth 5Y9.97%
Sales Q2Q%9.92%
3.2 Future
The Earnings Per Share is expected to grow by 1.46% on average over the next years.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y1.46%
Revenue Next Year2.99%
Revenue Next 2Y5.6%
Revenue Next 3Y6%
Revenue Next 5Y5.62%
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 decreasing.
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
A Price/Earnings ratio of 16.38 indicates a correct valuation of TRN.
TRN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, TRN is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.39, which indicates a correct valuation of TRN.
The rest of the industry has a similar Price/Forward Earnings ratio as TRN.
TRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 16.39 |
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)45.7
PEG (5Y)2.41
EPS Next 2Y2.61%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.70%, which is a nice return.
TRN's Dividend Yield is a higher than the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.51, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 8.33%!
Dividend Growth(5Y)8.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
BIT:TRN (4/25/2025, 7:00:00 PM)
8.52
-0.02 (-0.26%)
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 Cap17.13B
Analysts56.92
Price Target8.56 (0.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
Yearly Dividend0.33
Dividend Growth(5Y)8.33%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.44%
Min EPS beat(2)4.64%
Max EPS beat(2)10.24%
EPS beat(4)4
Avg EPS beat(4)8.7%
Min EPS beat(4)4.64%
Max EPS beat(4)15.27%
EPS beat(8)4
Avg EPS beat(8)-12.55%
EPS beat(12)7
Avg EPS beat(12)-8.27%
EPS beat(16)7
Avg EPS beat(16)-6.57%
Revenue beat(2)2
Avg Revenue beat(2)6.6%
Min Revenue beat(2)2.53%
Max Revenue beat(2)10.66%
Revenue beat(4)4
Avg Revenue beat(4)4.24%
Min Revenue beat(4)1.74%
Max Revenue beat(4)10.66%
Revenue beat(8)8
Avg Revenue beat(8)3.56%
Revenue beat(12)11
Avg Revenue beat(12)18.18%
Revenue beat(16)15
Avg Revenue beat(16)38.54%
PT rev (1m)0.73%
PT rev (3m)0.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.66%
EPS NY rev (3m)5.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 16.39 | ||
| P/S | 3.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.36 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.52
EY6.1%
EPS(NY)0.52
Fwd EY6.1%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.69
BVpS3.61
TBVpS3.17
PEG (NY)45.7
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 22% | ||
| ROCE | 12.99% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 10.51% | ||
| OM | 46.47% | ||
| PM (TTM) | 29.56% | ||
| GM | 81.87% | ||
| 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 3Y-1.02%
OM growth 5Y-1.8%
PM growth 3Y-2.52%
PM growth 5Y-2.71%
GM growth 3Y0.78%
GM growth 5Y-0.11%
F-ScoreN/A
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| 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 | 0.93 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.4 |
F-ScoreN/A
WACC5.77%
ROIC/WACC1.51
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)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0.83%
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y1.46%
Revenue 1Y (TTM)17.58%
Revenue growth 3Y13.24%
Revenue growth 5Y9.97%
Sales Q2Q%9.92%
Revenue Next Year2.99%
Revenue Next 2Y5.6%
Revenue Next 3Y6%
Revenue Next 5Y5.62%
EBIT growth 1Y25.29%
EBIT growth 3Y12.09%
EBIT growth 5Y8%
EBIT Next Year60.05%
EBIT Next 3Y23.4%
EBIT Next 5Y14.47%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A