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


Market Performance


7 Day Return

4.4%

BIT:TRN

1.0%

IT Electric Utilities

-0.1%

IT Market


1 Year Return

19.7%

BIT:TRN

17.2%

IT Electric Utilities

-3.6%

IT Market

TRN outperformed the Electric Utilities industry which returned 17.2% over the past year.

TRN outperformed the Market in Italy which returned -3.6% over the past year.


Share holder returns

TRNIndustryMarket
7 Day4.4%1.0%-0.1%
30 Day-1.4%1.0%-4.7%
90 Day-1.9%4.3%-1.7%
1 Year24.9%19.7%21.8%17.2%0.5%-3.6%
3 Year35.6%18.6%57.1%36.4%20.4%4.0%
5 Year76.1%40.5%40.3%4.6%7.2%-36.1%

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

15.64x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Terna - Rete Elettrica Nazionale Società per Azioni's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Terna - Rete Elettrica Nazionale Società per Azioni's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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 good value based on earnings compared to the Italy market.


Price Based on Expected Growth

Terna - Rete Elettrica Nazionale Società per Azioni is poor value based on expected growth next year.


Price Based on Value of Assets

Terna - Rete Elettrica Nazionale Società per Azioni is overvalued based on assets compared to the Europe Electric Utilities industry average.


Next Steps

Future Growth

How is Terna - Rete Elettrica Nazionale Società per Azioni expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Terna - Rete Elettrica Nazionale Società per Azioni's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Terna - Rete Elettrica Nazionale Società per Azioni's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Terna - Rete Elettrica Nazionale Società per Azioni's revenue growth is expected to exceed the Italy market average.

Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth is positive but not above the Italy market average.

Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Terna - Rete Elettrica Nazionale Società per Azioni is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (2.3% vs 6.8%)

Terna - Rete Elettrica Nazionale Società per Azioni's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (2.3% vs -8.2%).


Return on Equity

Terna - Rete Elettrica Nazionale Società per Azioni has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Terna - Rete Elettrica Nazionale Società per Azioni used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Terna - Rete Elettrica Nazionale Società per Azioni's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

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.


Debt to Equity History and Analysis

Terna - Rete Elettrica Nazionale Società per Azioni's level of debt (250.7%) 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 (323.6% vs 250.7% today).

Debt is not well covered by operating cash flow (12%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.3x 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 Terna - Rete Elettrica Nazionale Società per Azioni's current dividend yield, its reliability and sustainability?

5.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Terna - Rete Elettrica Nazionale Società per Azioni's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.06%).

Terna - Rete Elettrica Nazionale Società per Azioni's dividend is below the markets top 25% of dividend payers in Italy (4.52%).

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

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

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


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?

2.3yrs

Average management tenure


CEO

Luigi Ferraris (57yo)

2.3yrs

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

2.3yrs

Average Tenure

48yo

Average Age

The tenure for the Terna - Rete Elettrica Nazionale Società per Azioni management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

The tenure for the Terna - Rete Elettrica Nazionale Società per Azioni board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Luigi Ferraris (57yo)

    CEO, GM & Director

    • Tenure: 2.3yrs
  • Marco Fossataro (48yo)

    Chief Audit Executive

    • Tenure: 0.6yrs
  • Giuseppe Lasco

    Head of Corporate Affairs Division

    • Tenure: 0.0yrs
  • Luciano Di Bacco

    Human Resources & Organisation Director

    • Tenure: 0.0yrs
  • Giovanni Buttitta

    External Relations & Communication Director

    • Tenure: 0.0yrs
  • Pierpaolo Cristofori

    Administration

    • Tenure: 0.0yrs
  • Francesca Covone

    Head Legal & Corporate Affairs

    • Tenure: 0.0yrs
  • Luigi Michi

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

    • Tenure: 0.0yrs
  • Agostino Scornajenchi (47yo)

    Group Chief Financial Officer

    • Tenure: 2.6yrs
  • Omar Al Bayaty

    Head of Investor Relation

    • Tenure: 0.0yrs

Board Members

  • Luigi Ferraris (57yo)

    CEO, GM & Director

    • Tenure: 2.3yrs
  • Catia Bastioli (62yo)

    Chairwoman

    • Tenure: 5.3yrs
    • Compensation: €238.00k
  • Fabio Corsico (46yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: €115.00k
  • Luca Fabbro (53yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: €125.00k
  • Elena Vasco (55yo)

    Director

    • Tenure: 2.3yrs
  • Gabriella Porcelli (54yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: €115.00k
  • Riccardo Enrico Schioppo (69yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 5.3yrs
    • Compensation: €32.84k
  • Yunpeng He (54yo)

    Director

    • Tenure: 4.6yrs
  • Paola Giannotti (57yo)

    Director

    • Tenure: 2.3yrs
  • Paolo Calcagnini

    Non-Executive Director

    • Tenure: 0.5yrs

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: €11.155b
  • 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 Analysis2019/08/21 20:33
End of Day Share Price2019/08/21 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.