TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - BIT:TRN - IT0003242622 - Common Stock
8.95 EUR
+0.09 (+0.97%)
TRN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 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 quite expensive at the moment. It does show a decent growth rate. Finally TRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
TRN had a positive operating cash flow in the past year.
Each year in the past 5 years TRN has been profitable.
TRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.70%, TRN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
The Return On Equity of TRN (21.30%) is better than 68.42% of its industry peers.
The Return On Invested Capital of TRN (8.22%) is better than 68.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRN is below the industry average of 7.53%.
The last Return On Invested Capital (8.22%) for TRN is above the 3 year average (5.42%), which is a sign of increasing profitability.
| 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.
TRN's Profit Margin has declined in the last couple of years.
TRN's Operating Margin of 47.14% is amongst the best of the industry. TRN outperforms 94.74% 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 89.47% 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.
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
TRN has an Altman-Z score of 1.22. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.22, TRN perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
A Debt/Equity ratio of 1.78 is on the high side and indicates that TRN has dependencies on debt financing.
TRN's Debt to Equity ratio of 1.78 is on the low side compared to the rest of the industry. TRN is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.46
WACC5.62%
2.3 Liquidity
A Current Ratio of 0.81 indicates that TRN may have some problems paying its short term obligations.
TRN has a Current ratio (0.81) which is comparable to the rest of the industry.
A Quick Ratio of 0.79 indicates that TRN may have some problems paying its short term obligations.
TRN has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.87%, which is quite good.
Measured over the past 5 years, TRN shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
The Revenue has grown by 10.38% in the past year. This is quite good.
Measured over the past years, TRN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
EPS 1Y (TTM)10.87%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
3.2 Future
The Earnings Per Share is expected to grow by 3.40% on average over the next years.
TRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y4.51%
EPS Next 2Y2.68%
EPS Next 3Y3.27%
EPS Next 5Y3.4%
Revenue Next Year11.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.64%
Revenue Next 5Y6.36%
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
TRN is valuated correctly with a Price/Earnings ratio of 16.27.
TRN's Price/Earnings ratio is in line with the industry average.
TRN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.39, the valuation of TRN can be described as correct.
68.42% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.27. TRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 16.39 |
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 | 7.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRN may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)2.39
EPS Next 2Y2.68%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 3.97, TRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 7.81%!
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 2Y2.68%
EPS Next 3Y3.27%
BIT:TRN (11/4/2025, 7:00:00 PM)
8.95
+0.09 (+0.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners31.15%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.99B
Revenue(TTM)5.54B
Net Income(TTM)1.60B
Analysts65.22
Price Target9.09 (1.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)0.7%
PT rev (3m)2.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 16.39 | ||
| P/S | 3.25 | ||
| P/FCF | N/A | ||
| P/OCF | 9.07 | ||
| P/B | 2.4 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)0.55
EY6.15%
EPS(NY)0.55
Fwd EY6.1%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY11.02%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)3.61
PEG (5Y)2.39
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 | 1.22 |
F-Score5
WACC5.62%
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)10.87%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%16.79%
EPS Next Y4.51%
EPS Next 2Y2.68%
EPS Next 3Y3.27%
EPS Next 5Y3.4%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
Revenue Next Year11.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.64%
Revenue Next 5Y6.36%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.98%
EBIT Next 3Y24.21%
EBIT Next 5Y15.97%
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.
What is the valuation status for TRN stock?
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.
What is the valuation of TERNA-RETE ELETTRICA NAZIONA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is 16.27 and the Price/Book (PB) ratio is 2.4.
Can you provide the expected EPS growth for TRN stock?
The Earnings per Share (EPS) of TERNA-RETE ELETTRICA NAZIONA (TRN.MI) is expected to grow by 4.51% in the next year.