Executive Summary
Terna - Rete Elettrica Nazionale Società per Azioni, together with its subsidiaries, engages in the electricity transmission and dispatching activities in Italy, Euro-area countries, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
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 is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TRN's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-3.8%
TRN
-0.5%
IT Electric Utilities
-1.0%
IT Market
1 Year Return
8.7%
TRN
20.7%
IT Electric Utilities
-8.8%
IT Market
Return vs Industry: TRN underperformed the Italian Electric Utilities industry which returned 20.7% over the past year.
Return vs Market: TRN exceeded the Italian Market which returned -8.8% over the past year.
Shareholder returns
| TRN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | -0.5% | -1.0% |
| 30 Day | 0.6% | 8.3% | 14.9% |
| 90 Day | 2.2% | 13.4% | 10.5% |
| 1 Year | 13.1%8.7% | 25.1%20.7% | -6.3%-8.8% |
| 3 Year | 31.2%15.4% | 63.8%45.4% | -0.6%-10.4% |
| 5 Year | 63.9%32.2% | 89.1%49.6% | 9.2%-24.8% |
Long-Term 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
2 weeks ago | Simply Wall St
What Do The Returns On Capital At Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Tell Us?1 month ago | Simply Wall St
Does Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Have A Healthy Balance Sheet?2 months ago | Simply Wall St
What Kind Of Shareholders Own Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN)?Valuation
Is Terna - Rete Elettrica Nazionale Società per Azioni undervalued compared to its fair value and its price relative to the market?
15.93x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TRN (€6.09) is trading above our estimate of fair value (€3.76)
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 (15.9x) compared to the XE Electric Utilities industry average (11.7x).
PE vs Market: TRN is good value based on its PE Ratio (15.9x) compared to the Italian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: TRN is poor value based on its PEG Ratio (5.3x)
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 (0.8x).
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 13 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%).
Earnings vs Market: TRN's earnings (3% per year) are forecast to grow slower than the Italian market (24.8% per year).
High Growth Earnings: TRN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TRN's revenue (3.7% per year) is forecast to grow faster than the Italian market (3.2% per year).
High Growth Revenue: TRN's revenue (3.7% 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 (17.2%).
Next Steps
Past Performance
How has Terna - Rete Elettrica Nazionale Società per Azioni performed over the past 5 years?
5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRN has high quality earnings.
Growing Profit Margin: TRN's current net profit margins (31.8%) are higher than last year (30.5%).
Past Earnings Growth Analysis
Earnings Trend: TRN's earnings have grown by 5.8% per year over the past 5 years.
Accelerating Growth: TRN's earnings growth over the past year (7.8%) exceeds its 5-year average (5.8% per year).
Earnings vs Industry: TRN earnings growth over the past year (7.8%) exceeded the Electric Utilities industry -2.8%.
Return on Equity
High ROE: TRN's Return on Equity (17.8%) is considered low.
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 (€3.2B) do not cover its short term liabilities (€4.2B).
Long Term Liabilities: TRN's short term assets (€3.2B) do not cover its long term liabilities (€9.8B).
Debt to Equity History and Analysis
Debt Level: TRN's debt to equity ratio (269.5%) is considered high.
Reducing Debt: TRN's debt to equity ratio has increased from 259.1% to 269.5% over the past 5 years.
Debt Coverage: TRN's debt is not well covered by operating cash flow (9.4%).
Interest Coverage: TRN's interest payments on its debt are well covered by EBIT (13.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Terna - Rete Elettrica Nazionale Società per Azioni current dividend yield, its reliability and sustainability?
4.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TRN's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Italian market (1.47%).
High Dividend: TRN's dividend (4.09%) is low compared to the top 25% of dividend payers in the Italian market (4.83%).
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: With its reasonable payout ratio (67%), TRN's dividend 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 (78.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Stefano Donnarumma (53 yo)
0.58
Tenure
Mr. Stefano Antonio Donnarumma has been CEO, GM and Director of Terna - Rete Elettrica Nazionale Società per Azioni since May 18, 2020. He served as the Chief Executive Officer and Managing Director of ACE...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, GM & Director | 0.58yr | no data | no data | |
| Group Chief Financial Officer | 3.92yrs | no data | no data | |
| Administration | no data | no data | no data | |
| Head of External Communication & IR | 3.17yrs | no data | no data | |
| Legal & Corporate Affairs Director and Board Secretary | no data | no data | no data | |
| External Relations & Communication Director | no data | no data | no data | |
| Head of Human Resources & Organisation | 0.17yr | no data | no data | |
| Head of Procurement | 5.58yrs | no data | no data | |
| Chief Risk Officer & Data Protection Officer | 1.67yrs | no data | no data | |
| Chief Executive Officer of Terna Plus | no data | no data | no data | |
| Chief Audit Executive | 1.92yrs | no data | no data | |
| Head of Development & Special Projects | 0.92yr | no data | no data |
1.8yrs
Average Tenure
52yo
Average Age
Experienced Management: TRN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, GM & Director | 0.58yr | no data | no data | |
| Independent Director | 6.58yrs | €115.00k | no data | |
| Independent Director | 1.58yrs | no data | no data | |
| Independent Director | 0.58yr | no data | no data | |
| Chairman of the Board of Statutory Auditors | no data | no data | no data | |
| Independent Director | 6.58yrs | €115.00k | no data | |
| Director | 5.92yrs | no data | no data | |
| Independent Director | 3.67yrs | no data | no data | |
| Director | 0.58yr | no data | no data | |
| Chairwoman | 0.58yr | no data | no data | |
| Independent Director | 0.58yr | no data | no data | |
| Independent Director | 0.58yr | no data | no data |
0.6yrs
Average Tenure
53yo
Average Age
Experienced Board: TRN's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
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.
Top Shareholders
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: €12.177b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TERR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2004 |
| TRN | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Jun 2004 |
| UEI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2004 |
| 0LBM | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jun 2004 |
| TRNM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jun 2004 |
| TRN | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jun 2004 |
| TEZN.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jul 2010 |
Biography
Terna - Rete Elettrica Nazionale Società per Azioni, together with its subsidiaries, engages in the electricity transmission and dispatching activities in Italy, Euro-area countries, and internationally. I...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/04 19:54 |
| End of Day Share Price | 2020/12/04 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.