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TRN

Terna - Rete Elettrica Nazionale Società per AzioniBIT:TRN Stock Report

Last Price

€6.84

Market Cap

€13.7b

7D

0.3%

1Y

13.5%

Updated

17 Jan, 2022

Data

Company Financials +
TRN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends6/6

TRN Stock Overview

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.

Terna - Rete Elettrica Nazionale Società per Azioni Competitors

Enel

BIT:ENEL

€69.7b

Oracle

NYSE:ORCL

US$234.2b

SAP

XTRA:SAP

€144.5b

Applied Materials

NasdaqGS:AMAT

US$148.4b

Price History & Performance

Summary of all time highs, changes and price drops for Terna - Rete Elettrica Nazionale Società per Azioni
Historical stock prices
Current Share Price€6.84
52 Week High€7.25
52 Week Low€5.61
Beta0.42
1 Month Change-2.51%
3 Month Change7.18%
1 Year Change13.51%
3 Year Change28.62%
5 Year Change59.07%
Change since IPO288.64%

Recent News & Updates

Dec 16
Estimating The Fair Value Of Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN)

Estimating The Fair Value Of Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN)

In this article we are going to estimate the intrinsic value of Terna - Rete Elettrica Nazionale Società per Azioni...

Nov 10
These 4 Measures Indicate That Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Is Using Debt Extensively

These 4 Measures Indicate That Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Is Using Debt Extensively

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 12
The Returns At Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Aren't Growing

The Returns At Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) Aren't Growing

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

TRNIT Electric UtilitiesIT Market
7D0.3%-1.3%1.0%
1Y13.5%-8.6%21.3%

Return vs Industry: TRN exceeded the Italian Electric Utilities industry which returned -9.3% over the past year.

Return vs Market: TRN underperformed the Italian Market which returned 18.8% over the past year.

Price Volatility

Is TRN's price volatile compared to industry and market?
TRN volatility
TRN Average Weekly Movement2.1%
Electric Utilities Industry Average Movement3.9%
Market Average Movement4.3%
10% most volatile stocks in IT Market7.1%
10% least volatile stocks in IT Market2.7%

Stable Share Price: TRN is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TRN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19994,996Stefano Donnarummahttps://www.terna.it

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. It operates through Regulated, Non-Regulated, and International segments. The company is also involved in the planning, development, management, operation, and maintenance of national transmission grid, electricity infrastructures, and high-voltage infrastructures.

Terna - Rete Elettrica Nazionale Società per Azioni Fundamentals Summary

How do Terna - Rete Elettrica Nazionale Società per Azioni's earnings and revenue compare to its market cap?
TRN fundamental statistics
Market Cap€13.73b
Earnings (TTM)€796.80m
Revenue (TTM)€2.61b

17.2x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRN income statement (TTM)
Revenue€2.61b
Cost of Revenue€462.90m
Gross Profit€2.14b
Expenses€1.35b
Earnings€796.80m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.40
Gross Margin82.23%
Net Profit Margin30.59%
Debt/Equity Ratio260.8%

How did TRN perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

17.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRN (€6.84) is trading above our estimate of fair value (€6.53)

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 (17.2x) compared to the European Electric Utilities industry average (13.2x).

PE vs Market: TRN is good value based on its PE Ratio (17.2x) compared to the Italian market (19.1x).


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 (3x) compared to the XE Electric Utilities industry average (1x).


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 18 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN's forecast earnings growth (3.2% per year) is above the savings rate (1.8%).

Earnings vs Market: TRN's earnings (3.2% per year) are forecast to grow slower than the Italian market (11.1% per year).

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

Revenue vs Market: TRN's revenue (3% per year) is forecast to grow faster than the Italian market (-0.08% per year).

High Growth Revenue: TRN's revenue (3% 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 (16.7%).


Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRN has high quality earnings.

Growing Profit Margin: TRN's current net profit margins (30.6%) are lower than last year (31.8%).


Past Earnings Growth Analysis

Earnings Trend: TRN's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: TRN's earnings growth over the past year (3%) is below its 5-year average (4.8% per year).

Earnings vs Industry: TRN earnings growth over the past year (3%) underperformed the Electric Utilities industry 4.3%.


Return on Equity

High ROE: TRN's Return on Equity (17.3%) is considered low.


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 (€3.0B) do not cover its short term liabilities (€5.0B).

Long Term Liabilities: TRN's short term assets (€3.0B) do not cover its long term liabilities (€9.5B).


Debt to Equity History and Analysis

Debt Level: TRN's net debt to equity ratio (205.3%) is considered high.

Reducing Debt: TRN's debt to equity ratio has increased from 245.7% to 260.8% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: TRN's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Dividend

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

4.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRN's dividend (4.05%) is higher than the bottom 25% of dividend payers in the Italian market (1.06%).

High Dividend: TRN's dividend (4.05%) is in the top 25% of dividend payers in the Italian market (3.4%)


Stability and Growth of Payments

Stable Dividend: TRN's dividends per share have been stable 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 (70.1%), 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 (78.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Stefano Donnarumma (54 yo)

1.67yrs

Tenure

€1,625,023

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Stefano's total compensation ($USD1.85M) is below average for companies of similar size in the Italian market ($USD2.80M).

Compensation vs Earnings: Insufficient data to compare Stefano's compensation with company performance.


Leadership Team

Experienced Management: TRN's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: TRN's board of directors are not considered experienced ( 1.7 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 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
  • Implied Market Cap: €13.727b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:02
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.