TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
BIT:TRN - Euronext Milan - IT0003242622 - Common Stock - Currency: EUR
Overall TRN gets a fundamental rating of 5 out of 10. We evaluated TRN against 20 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
In the past year TRN was profitable.
In the past year TRN had a positive cash flow from operations.
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
The Return On Assets of TRN (5.88%) is better than 80.00% of its industry peers.
TRN has a Return On Equity of 21.24%. This is in the better half of the industry: TRN outperforms 75.00% of its industry peers.
TRN's Return On Invested Capital of 8.06% is fine compared to the rest of the industry. TRN outperforms 65.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is below the industry average of 7.76%.
The 3 year average ROIC (5.42%) for TRN is below the current ROIC(8.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.24% | ||
| ROIC | 8.06% |
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 29.77%. This is amongst the best in the industry. TRN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRN has declined.
Looking at the Operating Margin, with a value of 46.98%, TRN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TRN's Operating Margin has been stable in the last couple of years.
TRN's Gross Margin of 80.98% is amongst the best of the industry. TRN outperforms 90.00% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.98% | ||
| PM (TTM) | 29.77% | ||
| GM | 80.98% |
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
TRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Based on the Altman-Z score of 1.26, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN has a Altman-Z score (1.26) which is comparable to the rest of the industry.
TRN has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
TRN has a Debt to Equity ratio of 1.74. This is in the lower half of the industry: TRN underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC1.45
WACC5.57%
2.3 Liquidity
TRN has a Current Ratio of 0.91. 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 (0.91) which is in line with its industry peers.
TRN has a Quick Ratio of 0.91. 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 Quick ratio, with a value of 0.89, TRN is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.81% over the past year.
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 14.09% in the past year. This is quite good.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%1.41%
Revenue 1Y (TTM)14.09%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%5.09%
3.2 Future
The Earnings Per Share is expected to grow by 2.27% on average over the next years.
Based on estimates for the next years, TRN will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.27%
Revenue Next Year7.62%
Revenue Next 2Y7.83%
Revenue Next 3Y7.61%
Revenue Next 5Y5.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.23, TRN is valued correctly.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 65.00% 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 27.30.
Based on the Price/Forward Earnings ratio of 15.48, the valuation of TRN can be described as correct.
70.00% 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 21.76, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.61 |
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)45.28
PEG (5Y)2.39
EPS Next 2Y2.61%
EPS Next 3Y3.22%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.72%, which is a nice return.
Compared to an average industry Dividend Yield of 4.11, TRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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 43.22% of its income as dividend. 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.
DP43.22%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
BIT:TRN (7/11/2025, 7:00:00 PM)
8.442
+0.05 (+0.55%)
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 Cap16.97B
Analysts56.92
Price Target8.84 (4.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend0.34
Dividend Growth(5Y)7.81%
DP43.22%
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%
PT rev (3m)3.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.48 | ||
| P/S | 3.16 | ||
| P/FCF | N/A | ||
| P/OCF | 11.55 | ||
| P/B | 2.26 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)0.52
EY6.16%
EPS(NY)0.55
Fwd EY6.46%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)0.73
OCFY8.66%
SpS2.67
BVpS3.74
TBVpS3.25
PEG (NY)45.28
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.24% | ||
| ROCE | 12.41% | ||
| ROIC | 8.06% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 9.71% | ||
| OM | 46.98% | ||
| PM (TTM) | 29.77% | ||
| GM | 80.98% | ||
| 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 299.45% | ||
| Cap/Sales | 48.9% | ||
| Interest Coverage | 6.8 | ||
| Cash Conversion | 43.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.26 |
F-Score6
WACC5.57%
ROIC/WACC1.45
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)18.81%
EPS 3Y9.92%
EPS 5Y6.8%
EPS Q2Q%1.41%
EPS Next Y0.36%
EPS Next 2Y2.61%
EPS Next 3Y3.22%
EPS Next 5Y2.27%
Revenue 1Y (TTM)14.09%
Revenue growth 3Y12.58%
Revenue growth 5Y9.59%
Sales Q2Q%5.09%
Revenue Next Year7.62%
Revenue Next 2Y7.83%
Revenue Next 3Y7.61%
Revenue Next 5Y5.87%
EBIT growth 1Y25.79%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.32%
EBIT Next 3Y24.09%
EBIT Next 5Y15.78%
FCF growth 1Y2.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.38%
OCF growth 3Y20.84%
OCF growth 5Y2.54%