TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TRN - IT0003242622 - Common Stock
9.342 EUR
-0.06 (-0.66%)
Taking everything into account, TRN scores 5 out of 10 in our fundamental rating. TRN was compared to 28 industry peers in the Electric Utilities industry. While TRN has a great profitability rating, there are quite some concerns on its financial health. TRN is not valued too expensively and it also shows a decent growth rate. Finally TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
TRN had a positive operating cash flow in the past year.
In the past 5 years TRN has always been profitable.
TRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRN's Return On Assets of 5.70% is fine compared to the rest of the industry. TRN outperforms 75.00% of its industry peers.
TRN has a better Return On Equity (21.30%) than 71.43% of its industry peers.
TRN has a Return On Invested Capital of 8.22%. This is in the better half of the industry: TRN outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRN is in line with the industry average of 6.81%.
The 3 year average ROIC (5.42%) for TRN is below the current ROIC(8.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 21.3% | ||
| ROIC | 8.22% |
ROA(3y)3.81%
ROA(5y)3.76%
ROE(3y)14.02%
ROE(5y)15.38%
ROIC(3y)5.42%
ROIC(5y)5.17%
1.3 Margins
TRN has a better Profit Margin (28.88%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
The Operating Margin of TRN (47.14%) is better than 96.43% of its industry peers.
TRN's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRN (80.75%) is better than 82.14% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.14% | ||
| PM (TTM) | 28.88% | ||
| GM | 80.75% |
OM growth 3Y-0.34%
OM growth 5Y-1.39%
PM growth 3Y-1.94%
PM growth 5Y-2.37%
GM growth 3Y0.01%
GM growth 5Y-0.57%
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.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
The number of shares outstanding for TRN has been reduced compared to 5 years ago.
The debt/assets ratio for TRN has been reduced compared to a year ago.
2.2 Solvency
TRN has an Altman-Z score of 1.25. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
TRN has a Altman-Z score (1.25) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.78 is on the high side and indicates that TRN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.78, TRN is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC1.46
WACC5.64%
2.3 Liquidity
TRN has a Current Ratio of 0.81. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
TRN has a Current ratio (0.81) which is in line with its industry peers.
A Quick Ratio of 0.79 indicates that TRN may have some problems paying its short term obligations.
TRN's Quick ratio of 0.79 is in line compared to the rest of the industry. TRN outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.58% over the past year.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
Looking at the last year, TRN shows a quite strong growth in Revenue. The Revenue has grown by 15.80% in the last year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)6.58%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.65%
3.2 Future
Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 3.31% on average per year.
Based on estimates for the next years, TRN will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y5.53%
EPS Next 2Y3.08%
EPS Next 3Y3.38%
EPS Next 5Y3.31%
Revenue Next Year11.03%
Revenue Next 2Y9.25%
Revenue Next 3Y9.31%
Revenue Next 5Y7.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 16.99, the valuation of TRN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TRN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.00, TRN is valued a bit cheaper.
TRN is valuated correctly with a Price/Forward Earnings ratio of 16.97.
60.71% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TRN may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)2.5
EPS Next 2Y3.08%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.38%, which is a nice return.
Compared to an average industry Dividend Yield of 3.26, TRN pays a better dividend. On top of this TRN pays more dividend than 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
5.2 History
On average, the dividend of TRN grows each year by 7.81%, which is quite nice.
Dividend Growth(5Y)7.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRN pays out 49.65% of its income as dividend. 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.
DP49.65%
EPS Next 2Y3.08%
EPS Next 3Y3.38%
BIT:TRN (1/9/2026, 11:04:15 AM)
9.342
-0.06 (-0.66%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.78B
Revenue(TTM)3.62B
Net Income(TTM)1.60B
Analysts65.22
Price Target9.31 (-0.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Yearly Dividend0.34
Dividend Growth(5Y)7.81%
DP49.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.9%
Min EPS beat(2)5.01%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)7.67%
Min EPS beat(4)4.64%
Max EPS beat(4)10.78%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)7
Avg EPS beat(12)-7.47%
EPS beat(16)9
Avg EPS beat(16)-5.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)10.66%
Revenue beat(8)7
Avg Revenue beat(8)3.07%
Revenue beat(12)10
Avg Revenue beat(12)10.23%
Revenue beat(16)14
Avg Revenue beat(16)32.58%
PT rev (1m)2.34%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 16.97 | ||
| P/S | 3.39 | ||
| P/FCF | N/A | ||
| P/OCF | 9.47 | ||
| P/B | 2.5 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)0.55
EY5.89%
EPS(NY)0.55
Fwd EY5.89%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY10.56%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)3.07
PEG (5Y)2.5
Graham Number6.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 21.3% | ||
| ROCE | 12.75% | ||
| ROIC | 8.22% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.96% | ||
| OM | 47.14% | ||
| PM (TTM) | 28.88% | ||
| GM | 80.75% | ||
| FCFM | N/A |
ROA(3y)3.81%
ROA(5y)3.76%
ROE(3y)14.02%
ROE(5y)15.38%
ROIC(3y)5.42%
ROIC(5y)5.17%
ROICexc(3y)6.18%
ROICexc(5y)6.04%
ROICexgc(3y)6.53%
ROICexgc(5y)6.36%
ROCE(3y)8.16%
ROCE(5y)7.91%
ROICexgc growth 3Y2.03%
ROICexgc growth 5Y0.82%
ROICexc growth 3Y1.83%
ROICexc growth 5Y0.59%
OM growth 3Y-0.34%
OM growth 5Y-1.39%
PM growth 3Y-1.94%
PM growth 5Y-2.37%
GM growth 3Y0.01%
GM growth 5Y-0.57%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 324.54% | ||
| Cap/Sales | 52.83% | ||
| Interest Coverage | 6.57 | ||
| Cash Conversion | 56.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.25 |
F-Score5
WACC5.64%
ROIC/WACC1.46
Cap/Depr(3y)274.34%
Cap/Depr(5y)249.54%
Cap/Sales(3y)67.98%
Cap/Sales(5y)63.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.58%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%0%
EPS Next Y5.53%
EPS Next 2Y3.08%
EPS Next 3Y3.38%
EPS Next 5Y3.31%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.65%
Revenue Next Year11.03%
Revenue Next 2Y9.25%
Revenue Next 3Y9.31%
Revenue Next 5Y7.2%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.86%
EBIT Next 3Y24.13%
EBIT Next 5Y16.62%
FCF growth 1Y-1095.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.85%
OCF growth 3Y20.84%
OCF growth 5Y2.54%
TERNA-RETE ELETTRICA NAZIONA / TRN.MI FAQ
What is the ChartMill fundamental rating of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TRN.MI.
Can you provide the valuation status for TERNA-RETE ELETTRICA NAZIONA?
ChartMill assigns a valuation rating of 3 / 10 to TERNA-RETE ELETTRICA NAZIONA (TRN.MI). This can be considered as Overvalued.
Can you provide the profitability details for TERNA-RETE ELETTRICA NAZIONA?
TERNA-RETE ELETTRICA NAZIONA (TRN.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for TRN stock?
The financial health rating of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is 2 / 10.
How sustainable is the dividend of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) stock?
The dividend rating of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is 7 / 10 and the dividend payout ratio is 49.65%.