TERNA-RETE ELETTRICA NAZIONA (TRN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TRN - IT0003242622 - Common Stock
8.992 EUR
-0.02 (-0.2%)
Taking everything into account, TRN scores 5 out of 10 in our fundamental rating. TRN was compared to 29 industry peers in the Electric Utilities industry. TRN has an excellent profitability rating, but 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.
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
TRN has a Return On Assets of 5.70%. This is in the better half of the industry: TRN outperforms 79.31% of its industry peers.
TRN has a Return On Equity of 21.30%. This is in the better half of the industry: TRN outperforms 75.86% of its industry peers.
With a decent Return On Invested Capital value of 8.22%, TRN is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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 6.11%.
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's Profit Margin of 28.88% is amongst the best of the industry. TRN outperforms 100.00% of its industry peers.
TRN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 47.14%, TRN belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Operating Margin of TRN has remained more or less at the same level.
TRN's Gross Margin of 80.75% is fine compared to the rest of the industry. TRN outperforms 79.31% of its industry peers.
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
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
Based on the Altman-Z score of 1.23, we must say that TRN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.23, TRN perfoms like the industry average, outperforming 58.62% 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 has a worse Debt to Equity ratio (1.78) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC1.48
WACC5.56%
2.3 Liquidity
A Current Ratio of 0.81 indicates that TRN may have some problems paying its short term obligations.
The Current ratio of TRN (0.81) is comparable to the rest of the industry.
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 has a Quick ratio (0.79) which is comparable to the rest of the industry.
| 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.
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)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
The Earnings Per Share is expected to grow by 3.31% 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 7.20% yearly.
EPS Next Y5.47%
EPS Next 2Y2.92%
EPS Next 3Y3.19%
EPS Next 5Y3.31%
Revenue Next Year11.03%
Revenue Next 2Y9.32%
Revenue Next 3Y9.38%
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
With a Price/Earnings ratio of 16.35, TRN is valued correctly.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. TRN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.39, the valuation of TRN can be described as correct.
68.97% 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 36.20, TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 75.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
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)2.99
PEG (5Y)2.4
EPS Next 2Y2.92%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.37%, which is a nice return.
TRN's Dividend Yield is a higher than the industry average which is at 3.59.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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.
The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.65%
EPS Next 2Y2.92%
EPS Next 3Y3.19%
BIT:TRN (12/4/2025, 9:44:14 AM)
8.992
-0.02 (-0.2%)
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 Cap18.07B
Revenue(TTM)3.62B
Net Income(TTM)1.60B
Analysts65.22
Price Target9.09 (1.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)-0.01%
PT rev (3m)1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.92%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 16.39 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | 9.11 | ||
| P/B | 2.41 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)0.55
EY6.12%
EPS(NY)0.55
Fwd EY6.1%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.99
OCFY10.97%
SpS2.75
BVpS3.74
TBVpS3.2
PEG (NY)2.99
PEG (5Y)2.4
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 | 1.23 |
F-Score5
WACC5.56%
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 Y5.47%
EPS Next 2Y2.92%
EPS Next 3Y3.19%
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 2Y9.32%
Revenue Next 3Y9.38%
Revenue Next 5Y7.2%
EBIT growth 1Y12.98%
EBIT growth 3Y12.2%
EBIT growth 5Y8.06%
EBIT Next Year65.98%
EBIT Next 3Y24.21%
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 16.35 and the Price/Book (PB) ratio is 2.41.
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 5.47% in the next year.