BIT:TRN

Stock Analysis Report

Terna - Rete Elettrica Nazionale Società per Azioni

Executive Summary

Terna - Rete Elettrica Nazionale Società per Azioni, together with its subsidiaries, engages in the electricity transmission and dispatching activities in Italy and internationally.

Snowflake

Fundamentals

Average dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Terna - Rete Elettrica Nazionale Società per Azioni's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

TRN

-0.2%

IT Electric Utilities

-1.6%

IT Market


1 Year Return

20.8%

TRN

16.9%

IT Electric Utilities

20.9%

IT Market

Return vs Industry: TRN exceeded the Italian Electric Utilities industry which returned 16.9% over the past year.

Return vs Market: TRN matched the Italian Market which returned 20.9% over the past year.


Shareholder returns

TRNIndustryMarket
7 Day-2.7%-0.2%-1.6%
30 Day0.1%0.08%4.0%
90 Day4.6%1.2%9.7%
1 Year25.8%20.8%21.6%16.9%26.4%20.9%
3 Year68.6%48.1%64.7%43.5%41.5%21.3%
5 Year90.1%52.2%47.5%14.3%23.1%-24.3%

Price Volatility Vs. Market

How volatile is Terna - Rete Elettrica Nazionale Società per Azioni's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Terna - Rete Elettrica Nazionale Società per Azioni undervalued compared to its fair value and its price relative to the market?

16.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRN (€5.83) is trading above our estimate of fair value (€3.85)

Significantly Below Fair Value: TRN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRN is poor value based on its PE Ratio (16.3x) compared to the Electric Utilities industry average (13x).

PE vs Market: TRN is good value based on its PE Ratio (16.3x) compared to the Italian market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TRN is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: TRN is overvalued based on its PB Ratio (2.9x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Terna - Rete Elettrica Nazionale Società per Azioni forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN's forecast earnings growth (3% per year) is above the savings rate (2.9%).

Earnings vs Market: TRN's earnings (3% per year) are forecast to grow slower than the Italian market (8.7% per year).

High Growth Earnings: TRN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRN's revenue (3.5% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: TRN's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRN's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

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

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRN has high quality earnings.

Growing Profit Margin: TRN's current net profit margins (30.5%) are lower than last year (30.7%).


Past Earnings Growth Analysis

Earnings Trend: TRN's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: TRN's earnings growth over the past year (2.4%) is below its 5-year average (6.5% per year).

Earnings vs Industry: TRN earnings growth over the past year (2.4%) underperformed the Electric Utilities industry 2.6%.


Return on Equity

High ROE: TRN's Return on Equity (17.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Terna - Rete Elettrica Nazionale Società per Azioni's financial position?


Financial Position Analysis

Short Term Liabilities: TRN's short term assets (€329.5M) do not cover its short term liabilities (€2.1B)

Long Term Liabilities: TRN's short term assets (€329.5M) do not cover its long term liabilities (8.5B)


Debt to Equity History and Analysis

Debt Level: TRN's debt to equity ratio (199.2%) is considered high.

Reducing Debt: TRN's debt to equity ratio has reduced from 303.5% to 199.2% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: TRN's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

Inventory Level: TRN has a high level of physical assets or inventory.

Debt Coverage by Assets: TRN's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%4.4%industryaverage4.1%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: TRN's dividend (4%) is higher than the bottom 25% of dividend payers in the Italian market (2.05%).

High Dividend: TRN's dividend (4%) is low compared to the top 25% of dividend payers in the Italian market (4.39%).


Stability and Growth of Payments

Stable Dividend: TRN's dividend payments have been volatile in the past 10 years.

Growing Dividend: TRN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.9%), TRN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRN's dividends in 3 years are forecast to be covered by earnings (74.2% payout ratio).


Next Steps

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?

2.6yrs

Average management tenure


CEO

Luigi Ferraris (57yo)

2.6yrs

Tenure

0

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 th ...


Management Age and Tenure

2.6yrs

Average Tenure

48yo

Average Age

Experienced Management: TRN's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Board: TRN's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Luigi Ferraris (57yo)

    CEO, GM & Director

    • Tenure: 2.6yrs
  • Marco Fossataro (48yo)

    Chief Audit Executive

    • Tenure: 0.8yrs
  • Giuseppe Lasco

    Head of Corporate Affairs Division

    • Tenure: 0yrs
  • Luciano Di Bacco

    Human Resources & Organisation Director

    • Tenure: 0yrs
  • Giovanni Buttitta

    External Relations & Communication Director

    • Tenure: 0yrs
  • Pierpaolo Cristofori

    Administration

    • Tenure: 0yrs
  • Francesca Covone

    Head Legal & Corporate Affairs

    • Tenure: 0yrs
  • Luigi Michi

    Head of Strategy & Development Division and Chief Executive Officer of Terna Plus

    • Tenure: 0yrs
  • Agostino Scornajenchi (47yo)

    Group Chief Financial Officer

    • Tenure: 2.8yrs
  • Omar Al Bayaty

    Head of Investor Relation

    • Tenure: 0yrs

Board Members

  • Luigi Ferraris (57yo)

    CEO, GM & Director

    • Tenure: 2.6yrs
  • Catia Bastioli (62yo)

    Chairwoman

    • Tenure: 5.5yrs
    • Compensation: €238.00k
  • Fabio Corsico (46yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €115.00k
  • Marco Giorgino (50yo)

    Director

    • Tenure: 0yrs
  • Elena Vasco (55yo)

    Independent Director

    • Tenure: 2.6yrs
  • Gabriella Porcelli (54yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €115.00k
  • Riccardo Enrico Schioppo (69yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 5.5yrs
    • Compensation: €32.84k
  • Yunpeng He (54yo)

    Director

    • Tenure: 4.8yrs
  • Paola Giannotti (57yo)

    Independent Director

    • Tenure: 2.6yrs
  • Paolo Calcagnini

    Non-Executive Director

    • Tenure: 0.8yrs

Company Information

Terna - Rete Elettrica Nazionale Società per Azioni's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Terna - Rete Elettrica Nazionale Società per Azioni
  • Ticker: TRN
  • Exchange: BIT
  • Founded: 1999
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €11.710b
  • Shares outstanding: 2.01b
  • Website: https://www.terna.it

Number of Employees


Location

  • Terna - Rete Elettrica Nazionale Società per Azioni
  • Viale Egidio Galbani, 70
  • Rome
  • Rome
  • 156
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004
TRNBIT (Borsa Italiana)YesOrdinary SharesITEURJun 2004
UEIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2004
0LBMLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2004
TRNMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2004
TRNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2004
TEZN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 2010

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 20:31
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.