TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TRN - IT0003242622 - Common Stock
8.876 EUR
-0.02 (-0.2%)
TRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 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 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.
In the past year TRN had a positive cash flow from operations.
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
The Return On Assets of TRN (5.70%) is better than 72.41% of its industry peers.
Looking at the Return On Equity, with a value of 21.30%, TRN is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
The Return On Invested Capital of TRN (8.22%) is better than 72.41% of its industry peers.
TRN had an Average Return On Invested Capital over the past 3 years of 5.42%. This is in line with the industry average of 6.77%.
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 Profit Margin of 28.88%. This is amongst the best in the industry. TRN outperforms 100.00% of its industry peers.
TRN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 47.14%, TRN belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
TRN's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRN (80.75%) is better than 82.76% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRN 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 has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN's Altman-Z score of 1.22 is in line compared to the rest of the industry. TRN outperforms 51.72% of its industry peers.
TRN has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRN (1.78) is worse than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.48
WACC5.55%
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 of 0.81. This is comparable to the rest of the industry: TRN outperforms 44.83% of its industry peers.
TRN has a Quick 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's Quick ratio of 0.79 is in line compared to the rest of the industry. TRN outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TRN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.58%.
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 15.80% in the past year. This is quite good.
TRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
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
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.31% yearly.
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 Y5.76%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
EPS Next 5Y3.31%
Revenue Next Year11.05%
Revenue Next 2Y9.25%
Revenue Next 3Y9.31%
Revenue Next 5Y7.2%
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
With a Price/Earnings ratio of 16.14, TRN is valued correctly.
TRN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.22. TRN is valued slightly cheaper when compared to this.
TRN is valuated correctly with a Price/Forward Earnings ratio of 16.09.
TRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 68.97% of the companies in the same industry.
TRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.8 |
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)2.8
PEG (5Y)2.37
EPS Next 2Y3.2%
EPS Next 3Y3.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is a higher than the industry average which is at 3.58.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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
49.65% of the earnings are spent on dividend by TRN. This is a bit on the high side, but may be sustainable.
The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.65%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
BIT:TRN (12/18/2025, 5:36:15 PM)
8.876
-0.02 (-0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.84B
Revenue(TTM)3.62B
Net Income(TTM)1.60B
Analysts65.22
Price Target9.27 (4.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)1.98%
PT rev (3m)2.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 16.09 | ||
| P/S | 3.22 | ||
| P/FCF | N/A | ||
| P/OCF | 9 | ||
| P/B | 2.38 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)0.55
EY6.2%
EPS(NY)0.55
Fwd EY6.21%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY11.12%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)2.8
PEG (5Y)2.37
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
WACC5.55%
ROIC/WACC1.48
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 Y5.76%
EPS Next 2Y3.2%
EPS Next 3Y3.46%
EPS Next 5Y3.31%
Revenue 1Y (TTM)15.8%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.65%
Revenue Next Year11.05%
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 Year65.92%
EBIT Next 3Y24.12%
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 5 / 10 to TRN.MI.
What is the valuation status for TRN stock?
ChartMill assigns a valuation rating of 4 / 10 to TERNA-RETE ELETTRICA NAZIONA (TRN.MI). This can be considered as Fairly Valued.
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 16.14 and the Price/Book (PB) ratio is 2.38.
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 5.76% in the next year.