TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - BIT:TRN - IT0003242622 - Common Stock
8.318 EUR
-0.08 (-0.91%)
Taking everything into account, TRN scores 5 out of 10 in our fundamental rating. TRN was compared to 17 industry peers in the Electric Utilities industry. While TRN has a great profitability rating, there are quite some 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
TRN had positive earnings in the past year.
TRN had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.70%, TRN is doing good in the industry, outperforming 76.47% of the companies in the same industry.
With a decent Return On Equity value of 21.30%, TRN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Return On Invested Capital of TRN (8.22%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is below the industry average of 8.55%.
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.
TRN's Profit Margin has declined in the last couple of years.
TRN has a Operating Margin of 47.14%. This is amongst the best in the industry. TRN outperforms 94.12% of its industry peers.
TRN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 80.75%, TRN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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 | 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.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
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
TRN has an Altman-Z score of 1.19. 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 1.19, TRN perfoms like the industry average, outperforming 41.18% 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 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACC1.5
WACC5.48%
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.
Looking at the Current ratio, with a value of 0.81, TRN is in line with its industry, outperforming 47.06% of the companies in the same industry.
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 52.94% of 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.
TRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.38%.
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)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
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.79% yearly.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y3.82%
EPS Next 2Y2.52%
EPS Next 3Y3.29%
EPS Next 5Y2.79%
Revenue Next Year11.41%
Revenue Next 2Y9.63%
Revenue Next 3Y9.65%
Revenue Next 5Y6.45%
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 15.12.
TRN's Price/Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 64.71% of the companies in the same industry.
TRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 15.28, TRN is valued correctly.
70.59% 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 22.88, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.47 |
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.
TRN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.96
PEG (5Y)2.22
EPS Next 2Y2.52%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.68%, which is a nice return.
TRN's Dividend Yield is a higher than the industry average which is at 4.35.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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.
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.65%
EPS Next 2Y2.52%
EPS Next 3Y3.29%
BIT:TRN (9/18/2025, 7:00:00 PM)
8.318
-0.08 (-0.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners24.25%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.72B
Analysts56.8
Price Target9.03 (8.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)1.04%
PT rev (3m)2.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.45%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)-1.53%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 15.28 | ||
| P/S | 3.02 | ||
| P/FCF | N/A | ||
| P/OCF | 8.43 | ||
| P/B | 2.23 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 7.47 |
EPS(TTM)0.55
EY6.61%
EPS(NY)0.54
Fwd EY6.54%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY11.86%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)3.96
PEG (5Y)2.22
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%
ROICexcg growth 3Y2.03%
ROICexcg 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 | 1.19 |
F-Score5
WACC5.48%
ROIC/WACC1.5
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 Y3.82%
EPS Next 2Y2.52%
EPS Next 3Y3.29%
EPS Next 5Y2.79%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%10.72%
Revenue Next Year11.41%
Revenue Next 2Y9.63%
Revenue Next 3Y9.65%
Revenue Next 5Y6.45%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.32%
EBIT Next 3Y24.09%
EBIT Next 5Y16.07%
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%