WBAG:SRG

Stock Analysis Report

Executive Summary

Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Snam's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

WBAG:SRG

0%

AT Gas Utilities

-1.2%

AT Market


1 Year Return

21.0%

WBAG:SRG

0%

AT Gas Utilities

-6.7%

AT Market

SRG outperformed the Gas Utilities industry which returned 6% over the past year.

SRG outperformed the Market in Austria which returned -6.7% over the past year.


Share holder returns

SRGIndustryMarket
7 Day2.7%0%-1.2%
30 Day-5.0%0%-1.2%
90 Day-2.6%0%-3.5%
1 Year27.3%21.0%0%0%-3.1%-6.7%
3 Yearn/a0%0%49.4%35.6%
5 Yearn/a0%0%50.1%28.6%

Price Volatility Vs. Market

How volatile is Snam's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Snam undervalued based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Snam's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Snam's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Snam is good value based on earnings compared to the Europe Gas Utilities industry average.

Snam is overvalued based on earnings compared to the Austria market.


Price Based on Expected Growth

Snam is poor value based on expected growth next year.


Price Based on Value of Assets

Snam is overvalued based on assets compared to the Europe Gas Utilities industry average.


Next Steps

Future Growth

How is Snam expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Snam's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Snam's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Snam's revenue growth is expected to exceed the Austria market average.

Snam's earnings growth is positive but not above the Austria market average.

Snam's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Snam is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Snam performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Snam's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Snam's 1-year earnings growth exceeds its 5-year average (11.1% vs -4.4%)

Snam's earnings growth has not exceeded the Europe Gas Utilities industry average in the past year (11.1% vs 11.1%).


Return on Equity

Snam has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Snam used its assets more efficiently than the Europe Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Snam has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Snam's financial position?


Financial Position Analysis

Snam's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Snam's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Snam's level of debt (231.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (226.6% vs 231.9% today).

Debt is not well covered by operating cash flow (10.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Snam's current dividend yield, its reliability and sustainability?

5.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Snam's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.63%).

Snam's dividend is above the markets top 25% of dividend payers in Austria (4.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Snam's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Marco Alverà (44yo)

3.3yrs

Tenure

Mr. Marco Alverà serves as the Chief Executive Officer of Snam S.p.A. He served as Chairman at Snam Rete Gas S.p.A. until November 2017. Mr. Alverà served as Chief Industrial Assets Officer at Snam S.p.A.  ...


Management Age and Tenure

2.8yrs

Average Tenure

48.5yo

Average Age

The tenure for the Snam management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

53yo

Average Age

The average tenure for the Snam board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paolo Mosa (59yo)

    Chief Commercial

    • Tenure: 3.6yrs
  • Cosma Panzacchi (41yo)

    Executive Vice President for Digital Transformation & Technology

    • Tenure: 1.6yrs
  • Patrizia Rutigliano (51yo)

    Executive Vice President of Government Affairs

    • Tenure: 10.6yrs
  • Gaetano Mazzitelli (51yo)

    Executive Vice President of Regulatory Affairs

    • Tenure: 7.7yrs
  • Marco Reggiani

    General Counsel & Secretary

    • Tenure: 2.8yrs
  • Franco Pruzzi (55yo)

    Head of Administration & Finance

    • Tenure: 2.9yrs
  • Alessandra Pasini (46yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Marco Alverà (44yo)

    CEO & Director

    • Tenure: 3.3yrs
  • Paola Boromei

    Executive Vice President of Human Resources & Organization

    • Tenure: 2.4yrs
  • Camilla Palladino (41yo)

    Executive Vice President of Corporate Strategy & Investor Relations

    • Tenure: 2.8yrs

Board Members

  • Marco Galletti

    Chairman of Gnl Italia and Chief Executive Officer of Gnl Italia

  • Stefano Gnocchi (45yo)

    Chairman of Statutory Auditors

    • Tenure: 0.3yrs
  • Antonio Paccioretti

    Chairman of Stogit

  • Francesco Gori (67yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: 70.00k
  • Alessandro Tonetti (42yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Luca Fabbro (53yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Biagio Cafarelli

    Chairman of TEP Energy Solution

    • Tenure: 1.0yrs
  • Yunpeng He (54yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: 37.00k
  • Marco Alverà (44yo)

    CEO & Director

    • Tenure: 3.3yrs
  • Laura Cavatorta (55yo)

    Director

    • Tenure: 0.3yrs

Company Information

Snam S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Snam S.p.A.
  • Ticker: SRG
  • Exchange: WBAG
  • Founded: 1941
  • Industry: gas utilities
  • Sector: utilities
  • Market Cap: €14.811b
  • Shares outstanding: 3.30b
  • Website: Click here

Number of Employees


Location

  • Snam S.p.A.
  • Piazza Santa Barbara, 7
  • San Donato Milanese
  • Milan
  • 20097
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNMR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2001
SRGBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2001
0NQPLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2001
SNMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2001
SRGMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2001
SRGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2001
SNMR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe. It operates through Natural Gas Transportation, Regasification  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 21:48
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.