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Terna - Rete Elettrica Nazionale Società per Azioni

WBAG:TRN
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRN
WBAG
€11B
Market Cap
  1. Home
  2. AT
  3. Utilities
Company description

Terna - Rete Elettrica Nazionale Società per Azioni, together with its subsidiaries, engages in the electricity transmission and dispatching activities in Italy and internationally. The last earnings update was 33 days ago. More info.


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TRN Share Price and Events
7 Day Returns
-0.9%
WBAG:TRN
-0.4%
Europe Electric Utilities
1.2%
AT Market
1 Year Returns
10.2%
WBAG:TRN
11.9%
Europe Electric Utilities
-3.1%
AT Market
TRN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Terna - Rete Elettrica Nazionale Società per Azioni (TRN) -0.9% -2.4% 1.2% 10.2% - -
Europe Electric Utilities -0.4% -1.1% 2.9% 11.9% 25.5% 0.9%
AT Market 1.2% 6.8% 9.3% -3.1% 44.7% 32.6%
1 Year Return vs Industry and Market
  • TRN underperformed the Electric Utilities industry which returned 11.9% over the past year.
  • TRN outperformed the Market in Austria which returned -3.1% over the past year.
Price Volatility
TRN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Terna - Rete Elettrica Nazionale Società per Azioni undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Terna - Rete Elettrica Nazionale Società per Azioni to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Terna - Rete Elettrica Nazionale Società per Azioni.

WBAG:TRN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:TRN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.24
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.241 (1 + (1- 24%) (73.02%))
0.582
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (0.8 * 9.02%)
7.73%

Discounted Cash Flow Calculation for WBAG:TRN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Terna - Rete Elettrica Nazionale Società per Azioni is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:TRN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.73%)
2019 150.58 Analyst x4 139.78
2020 156.67 Analyst x3 135.00
2021 170.33 Analyst x3 136.25
2022 290.67 Analyst x3 215.83
2023 438.00 Analyst x2 301.91
2024 550.77 Est @ 25.75% 352.41
2025 650.88 Est @ 18.18% 386.60
2026 734.69 Est @ 12.88% 405.08
2027 802.04 Est @ 9.17% 410.50
2028 854.73 Est @ 6.57% 406.09
Present value of next 10 years cash flows €2,889.44
WBAG:TRN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €854.73 × (1 + 0.51%) ÷ (7.73% – 0.51%)
€11,905.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €11,905.34 ÷ (1 + 7.73%)10
€5,656.35
WBAG:TRN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €2,889.44 + €5,656.35
€8,545.79
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €8,545.79 / 2,009.99
€4.25
WBAG:TRN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:TRN represents 1.00222x of BIT:TRN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00222x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 4.25 x 1.00222
€4.26
Value per share (EUR) From above. €4.26
Current discount Discount to share price of €5.39
= -1 x (€5.39 - €4.26) / €4.26
-26.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Terna - Rete Elettrica Nazionale Società per Azioni is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Terna - Rete Elettrica Nazionale Società per Azioni's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Terna - Rete Elettrica Nazionale Società per Azioni's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:TRN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.35
BIT:TRN Share Price ** BIT (2019-04-23) in EUR €5.38
Europe Electric Utilities Industry PE Ratio Median Figure of 65 Publicly-Listed Electric Utilities Companies 11.97x
Austria Market PE Ratio Median Figure of 52 Publicly-Listed Companies 14.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Terna - Rete Elettrica Nazionale Società per Azioni.

WBAG:TRN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:TRN Share Price ÷ EPS (both in EUR)

= 5.38 ÷ 0.35

15.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terna - Rete Elettrica Nazionale Società per Azioni is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • Terna - Rete Elettrica Nazionale Società per Azioni is overvalued based on earnings compared to the Austria market.
Price based on expected Growth
Does Terna - Rete Elettrica Nazionale Società per Azioni's expected growth come at a high price?
Raw Data
WBAG:TRN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
3.2%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 31 Publicly-Listed Electric Utilities Companies 0.71x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

WBAG:TRN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.53x ÷ 3.2%

4.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terna - Rete Elettrica Nazionale Società per Azioni is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Terna - Rete Elettrica Nazionale Società per Azioni's assets?
Raw Data
WBAG:TRN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €1.91
BIT:TRN Share Price * BIT (2019-04-23) in EUR €5.38
Europe Electric Utilities Industry PB Ratio Median Figure of 74 Publicly-Listed Electric Utilities Companies 0.95x
Austria Market PB Ratio Median Figure of 60 Publicly-Listed Companies 1.24x
WBAG:TRN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:TRN Share Price ÷ Book Value per Share (both in EUR)

= 5.38 ÷ 1.91

2.82x

* Primary Listing of Terna - Rete Elettrica Nazionale Società per Azioni.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terna - Rete Elettrica Nazionale Società per Azioni is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Terna - Rete Elettrica Nazionale Società per Azioni expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Terna - Rete Elettrica Nazionale Società per Azioni expected to grow at an attractive rate?
  • Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth is positive but not above the Austria market average.
  • Terna - Rete Elettrica Nazionale Società per Azioni's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:TRN Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:TRN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 3.2%
WBAG:TRN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3.7%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Austria Market Earnings Growth Rate Market Cap Weighted Average 9.1%
Austria Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:TRN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:TRN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,664 1,542 838 5
2022-12-31 2,566 1,460 800 6
2021-12-31 2,463 1,343 777 11
2020-12-31 2,383 1,277 762 16
2019-12-31 2,302 1,254 736 16
WBAG:TRN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 2,197 1,475 707
2018-09-30 2,253 1,370 701
2018-06-30 2,232 1,644 697
2018-03-31 2,213 1,406 692
2017-12-31 2,199 1,692 688
2017-09-30 2,065 1,940 675
2017-06-30 2,051 1,307 660
2017-03-31 2,107 1,683 650
2016-12-31 2,045 1,560 633
2016-09-30 2,209 708 620
2016-06-30 2,157 1,240 603
2016-03-31 2,009 992 585

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Terna - Rete Elettrica Nazionale Società per Azioni's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Terna - Rete Elettrica Nazionale Società per Azioni's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:TRN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Terna - Rete Elettrica Nazionale Società per Azioni Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:TRN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.41 0.43 0.39 4.00
2022-12-31 0.39 0.42 0.38 4.00
2021-12-31 0.39 0.40 0.37 10.00
2020-12-31 0.38 0.39 0.37 14.00
2019-12-31 0.37 0.38 0.36 14.00
WBAG:TRN Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31
2018-09-30
2018-06-30 0.35
2018-03-31
2017-12-31 0.34
2017-09-30
2017-06-30 0.33
2017-03-31
2016-12-31 0.32
2016-09-30
2016-06-30 0.30
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Terna - Rete Elettrica Nazionale Società per Azioni is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Terna - Rete Elettrica Nazionale Società per Azioni performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Terna - Rete Elettrica Nazionale Società per Azioni's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Terna - Rete Elettrica Nazionale Società per Azioni's year on year earnings growth rate has been positive over the past 5 years.
  • Terna - Rete Elettrica Nazionale Società per Azioni's 1-year earnings growth is less than its 5-year average (2.7% vs 7.2%)
  • Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (2.7% vs -2.7%).
Earnings and Revenue History
Terna - Rete Elettrica Nazionale Società per Azioni's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Terna - Rete Elettrica Nazionale Società per Azioni Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:TRN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,197.00 706.60 238.80
2018-09-30 2,253.10 701.00 254.40
2018-06-30 2,232.40 697.20 251.90
2018-03-31 2,212.50 691.70 251.40
2017-12-31 2,198.60 688.30 251.90
2017-09-30 2,064.70 675.10 261.80
2017-06-30 2,050.90 659.60 260.80
2017-03-31 2,107.30 650.20 259.10
2016-12-31 2,045.30 633.10 251.70
2016-09-30 2,209.00 620.10 250.40
2016-06-30 2,156.50 603.10 248.30
2016-03-31 2,009.40 585.20 242.50
2015-12-31 2,025.60 588.20 244.80
2015-09-30 1,947.80 570.60 242.20
2015-06-30 1,947.00 569.40 248.40
2015-03-31 1,950.30 553.50 239.50
2014-12-31 1,924.50 533.50 234.50
2014-09-30 1,847.90 519.80 237.00
2014-06-30 1,846.90 523.90 218.50
2014-03-31 1,842.80 517.20 213.70
2013-12-31 1,847.20 513.60 215.00
2013-09-30 1,827.20 519.70 201.40
2013-06-30 1,794.40 505.40 205.40
2013-03-31 1,768.90 491.20 214.70
2012-12-31 1,735.20 463.60 214.10
2012-09-30 1,657.00 458.20 217.40
2012-06-30 1,642.80 315.90 209.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Terna - Rete Elettrica Nazionale Società per Azioni has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Terna - Rete Elettrica Nazionale Società per Azioni used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Terna - Rete Elettrica Nazionale Società per Azioni has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Terna - Rete Elettrica Nazionale Società per Azioni's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Terna - Rete Elettrica Nazionale Società per Azioni's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Terna - Rete Elettrica Nazionale Società per Azioni's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Terna - Rete Elettrica Nazionale Società per Azioni's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Terna - Rete Elettrica Nazionale Società per Azioni's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Terna - Rete Elettrica Nazionale Società per Azioni Company Filings, last reported 3 months ago.

WBAG:TRN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,054.20 7,899.40
2018-09-30 4,066.60 9,637.50 2,045.80
2018-06-30 3,874.70 8,961.40 1,066.20
2018-03-31 4,008.90 8,941.40 1,323.70
2017-12-31 3,829.00 9,785.60 1,989.40
2017-09-30 3,812.50 9,584.70 1,923.70
2017-06-30 3,640.30 8,660.90 404.60
2017-03-31 3,737.70 8,473.70 731.70
2016-12-31 3,555.20 9,437.70 1,135.80
2016-09-30 3,547.50 8,714.90 558.10
2016-06-30 3,388.40 8,787.40 294.90
2016-03-31 3,493.70 8,826.50 420.40
2015-12-31 3,345.80 9,122.50 434.40
2015-09-30 3,311.80 8,579.80 1,330.80
2015-06-30 3,164.10 9,035.90 1,537.70
2015-03-31 3,267.30 9,860.70 2,560.00
2014-12-31 3,092.90 8,884.80 1,220.30
2014-09-30 3,110.40 9,445.00 2,050.00
2014-06-30 2,960.30 9,585.60 1,684.80
2014-03-31 3,093.50 8,769.80 1,585.70
2013-12-31 2,940.60 8,787.70 1,632.90
2013-09-30 2,975.70 8,754.20 1,937.50
2013-06-30 2,821.70 8,892.80 1,768.10
2013-03-31 2,943.00 9,044.00 2,446.00
2012-12-31 2,788.30 9,257.10 2,531.40
2012-09-30 2,822.80 8,351.30 2,073.80
2012-06-30 2,695.30 8,268.10 1,764.30
  • Terna - Rete Elettrica Nazionale Società per Azioni's level of debt (194.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (298.7% vs 194.8% today).
  • Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
X
Financial health checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Terna - Rete Elettrica Nazionale Società per Azioni's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.33%
Current annual income from Terna - Rete Elettrica Nazionale Società per Azioni dividends. Estimated to be 5.04% next year.
If you bought €2,000 of Terna - Rete Elettrica Nazionale Società per Azioni shares you are expected to receive €87 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Terna - Rete Elettrica Nazionale Società per Azioni's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.47%).
  • Terna - Rete Elettrica Nazionale Società per Azioni's dividend is below the markets top 25% of dividend payers in Austria (4.59%).
Upcoming dividend payment

Purchase Terna - Rete Elettrica Nazionale Società per Azioni before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:TRN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 4.6%
Austria Market Average Dividend Yield Market Cap Weighted Average of 50 Stocks 3.3%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.5%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:TRN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.31 4.00
2022-12-31 0.30 5.00
2021-12-31 0.29 11.00
2020-12-31 0.26 17.00
2019-12-31 0.25 17.00
WBAG:TRN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.233 4.203
2018-05-04 0.220 4.526
2018-03-22 0.220 4.582
2017-04-05 0.206 4.203
2017-03-15 0.206 4.524
2016-05-04 0.200 4.451
2016-03-21 0.200 4.033
2015-05-13 0.200 4.510
2015-03-26 0.200 4.773
2014-05-30 0.200 5.148
2014-03-25 0.200 5.149
2013-03-15 0.200 5.802
2012-04-23 0.210 7.288
2012-03-20 0.210 7.217
2011-11-09 0.210 7.753
2011-04-18 0.210 7.114
2011-03-31 0.210 6.197
2010-10-18 0.200 6.162
2010-07-26 0.160 5.091
2010-04-30 0.190 6.222
2009-04-24 0.158 5.808

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Terna - Rete Elettrica Nazionale Società per Azioni's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Terna - Rete Elettrica Nazionale Società per Azioni afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Terna - Rete Elettrica Nazionale Società per Azioni's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Luigi Ferraris
AGE 56
TENURE AS CEO 2 years
CEO Bio

Mr. Luigi Ferraris has been the Chief Executive Officer of TERNA - Rete Elettrica Nazionale Società per Azioni since April 2017 and has been its General Manager since May 1, 2017. Mr. Ferraris served as the Chief Financial Officer at Poste Italiane S.p.A. from February 2015 to April 2017. He served Chief Financial Officer of Posteitaliane Group since February 2015. He served as the Chief Executive Officer of Enersis S.A./Chilean Enersis S.A. (also known as Enersis Américas S.A.) from November 2014 to January 29, 2015. From November 2014 to January 2015, he was Head of the Latin America Area of the Chilean Enersis S.A. Mr. Ferraris served as the Head of Latin America Operations at Enel SpA from November 12, 2014 to January 29, 2015. Mr. Ferraris served as the Chief Financial Officer of Enel SpA Group from June 2009 to November 12, 2014. Mr. Ferraris served as the Chief Financial Officer of Administration Planning & Control Department of Enel Spa since June 27, 2005. Mr. Ferraris served as Financial Controller at Enel Spa. He joined Enel Spa in 1999 and served as its Chief Financial Officer of Eurogen, Elettrogen from 1999 to 2001 and Interpower, Group Controller and Vice President of the Administration, Planning and Control Area at Enel Spa. Since 2001, he served as the Chief Financial Officer of the Sales, Infrastructure and Networks Division at Enel. From 1996 to 1998, he served as Area Controller Europe of Elsag Bailey Process Automation. From 1999 to 2015, he worked at Enel Group. From 2004 to 2005, he served as the Head of Planning and Control at the Enel group From 1998 to 1999, he served as Chief Financial Officer of Elsacom. He served as Head of Planning, Control, Administration and Services of the Infrastructure and Networks and Market Divisions at Enel from 2002 to early 2004. Mr. Ferraris began his career at PriceWaterhouse in 1988. He held several international managerial positions, working for leading industrial companies including Agusta, Piaggio VE and Sasib Beverage. From 1996 to 1999, he served as Head of the Europe Control Area of Elsag Baley Process Automation, part of the Finmeccanica Group. Since 2005, he served as an Executive Vice President of Administration, Planning and Control. From 2002 to 2004, he served as Head of Planning, Control, Administration and Services of the "Infracstructure and Networks"and "Market" Divisions, with a 21 billion euro turnover and 32 million customers served. From November 2014 to January 2015, he served as Head of Latin American Region of Enersis the investment hub of the Group in the Area. Since 2009, he served as Operating Chairman of Enerl Factor SpA. He serves as the Chairman of Enel Factor SpA. He served as the Chairman of Enel Servizi Srl from 2007 to March 2014 and has been its Sole Director since December 2004. Mr. Ferraris served as the Chairman of the Board at Enel Green Power S.p.A. from 2009 to December 2014. He serves as Director of Enel Produzione S.p.A., and Fondazione Centro Studi Enel and Enel Distribuzione SpA. He serves as a Director of TERNA - Rete Elettrica Nazionale Società per Azioni. He serves as a Director of Electra di Viesgo Distribucion S.L., Enel Energia S.p.A., Enel Rete Gas S.p.A., Enel.si S.r.l., Enel Trade SpA, Deval SpA, CISE SpA, Sfera Srl and Enel Ingegneria e Innovazione S.p.A. He serves as a Director on the Board of Gruppo PSC S.p.A. He served as a Director of Anima Holding S.p.A from November 4, 2016 to July 15, 2017. He also serves as member of the Supervisory Board of Slovesnké Elektrarne A.S. He serves as a Director of Avisio Energia S.p.A., Enel Viesgo Generacion S.L., EOGK-5 and Weather Investment. He served as Independent Director of ERG SpA until April 20, 2017. He served as a Director of Enel Investment Holding B.V. He served as a Member of Supervisory Board at Slovenské Elektrárne A.S. from April 27, 2006 to May 20, 2010. He served as a Director of Enersis S.A. from April 2013 to January 29, 2015. He was Director on the Board of Banca del Mezzogiorno-Mediocredito Centrale. He served as a Director of Open Joint-Stock Company Enel OGK-5 (also known as Public Joint-Stock Company Enel Russia) since June 2010. He served as a Director of Endesa SA from October 18, 2007 to December 2014. He served as a Director of Wind Telecomunicazioni SpA. Mr. Ferraris was also Professor at the Economics Department of the Luiss Guido Carli University of Rome, where he has also taught numerous courses, such as that on Energy Management, as part of the Masters in Business Administration, Business Strategy, Planning and Control and Management Control Systems until 2013. He previously taught courses in managerial accounting and controlling systems. Mr. Ferraris holds a Bachelor's Degree in Political Economics and Commerce/Business Studies from University of Genoa.

CEO Compensation
  • Insufficient data for Luigi to compare compensation growth.
  • Insufficient data for Luigi to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Terna - Rete Elettrica Nazionale Società per Azioni management team in years:

2
Average Tenure
47
Average Age
  • The tenure for the Terna - Rete Elettrica Nazionale Società per Azioni management team is about average.
Management Team

Luigi Ferraris

TITLE
CEO, GM & Director
AGE
56
TENURE
2 yrs

Agostino Scornajenchi

TITLE
Group Chief Financial Officer
AGE
46
TENURE
2.3 yrs

Pierpaolo Cristofori

TITLE
Administration

Omar Al Bayaty

TITLE
Head of Investor Relation

Francesca Covone

TITLE
Head Legal & Corporate Affairs

Giovanni Buttitta

TITLE
External Relations & Communication Director

Luciano Di Bacco

TITLE
Human Resources & Organisation Director

Giuseppe Lasco

TITLE
Head of Corporate Affairs Division

Luigi Michi

TITLE
Head of Stratergy & Development Division and Chief Executive Officer of Terna Plus

Marco Fossataro

TITLE
Chief Audit Executive
AGE
47
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Terna - Rete Elettrica Nazionale Società per Azioni board of directors in years:

4.9
Average Tenure
53.5
Average Age
  • The tenure for the Terna - Rete Elettrica Nazionale Società per Azioni board of directors is about average.
Board of Directors

Catia Bastioli

TITLE
Chairwoman
COMPENSATION
€238K
AGE
61
TENURE
4.9 yrs

Luigi Ferraris

TITLE
CEO, GM & Director
AGE
56

Fabio Corsico

TITLE
Director
COMPENSATION
€115K
AGE
45
TENURE
4.9 yrs

Luca Fabbro

TITLE
Director
COMPENSATION
€125K
AGE
52
TENURE
4.9 yrs

Stefano Saglia

TITLE
Director
COMPENSATION
€125K
AGE
47
TENURE
4.9 yrs

Riccardo Enrico Schioppo

TITLE
Chairman of the Board of Statutory Auditors
COMPENSATION
€33K
AGE
68
TENURE
4.9 yrs

Gabriella Porcelli

TITLE
Director
COMPENSATION
€115K
AGE
53
TENURE
4.9 yrs

Yunpeng He

TITLE
Director
AGE
53
TENURE
4.3 yrs

Paola Giannotti

TITLE
Director
AGE
56
TENURE
2 yrs

Elena Vasco

TITLE
Director
AGE
54
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Terna - Rete Elettrica Nazionale Società per Azioni's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Terna - Rete Elettrica Nazionale Società per Azioni has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Terna - Rete Elettrica Nazionale Società per Azioni, together with its subsidiaries, engages in the electricity transmission and dispatching activities in Italy and internationally. It is also involved in the design, development, planning, construction, management, operation, and maintenance of national transmission grid, electricity infrastructures, and high-voltage infrastructures. In addition, the company designs, produces, markets, and repairs industrial and power transformers; develops renewable energy projects; and offers energy solutions, telecommunications, and operation and maintenance services for third parties, as well as undertakes private interconnector projects. Further, it owns the national transmission grid in Italy with approximately 72,800 kilometers of high voltage lines; and 25 interconnection lines. Terna - Rete Elettrica Nazionale Società per Azioni was founded in 1999 and is headquartered in Rome, Italy.

Details
Name: Terna - Rete Elettrica Nazionale Società per Azioni
TRN
Exchange: WBAG
Founded: 1999
€10,817,776,944
2,009,992,000
Website: http://www.terna.it
Address: Terna - Rete Elettrica Nazionale Società per Azioni
Viale Egidio Galbani, 70,
Rome,
Rome, 00156,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT TRN Ordinary Shares Borsa Italiana IT EUR 23. Jun 2004
OTCPK TERR.F Ordinary Shares Pink Sheets LLC US USD 23. Jun 2004
DB UEI Ordinary Shares Deutsche Boerse AG DE EUR 23. Jun 2004
LSE 0LBM Ordinary Shares London Stock Exchange GB EUR 23. Jun 2004
WBAG TRN Ordinary Shares Wiener Boerse AG AT EUR 23. Jun 2004
BATS-CHIXE TRNM Ordinary Shares BATS 'Chi-X Europe' GB EUR 23. Jun 2004
OTCPK TEZN.Y ADR Pink Sheets LLC US USD 22. Jul 2010
Number of employees
Current staff
Staff numbers
4,252
Terna - Rete Elettrica Nazionale Società per Azioni employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 21:59
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.