BIT:TRN

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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, Euro-area countries, and internationally.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

TRN

4.2%

IT Electric Utilities

2.7%

IT Market


1 Year Return

5.8%

TRN

13.8%

IT Electric Utilities

-11.6%

IT Market

Return vs Industry: TRN underperformed the Italian Electric Utilities industry which returned 13.8% over the past year.

Return vs Market: TRN exceeded the Italian Market which returned -11.6% over the past year.


Shareholder returns

TRNIndustryMarket
7 Day-2.0%4.2%2.7%
30 Day-0.5%4.2%-1.7%
90 Day11.2%16.7%12.4%
1 Year10.1%5.8%18.1%13.8%-9.3%-11.6%
3 Year45.4%27.9%61.8%43.3%-3.3%-12.0%
5 Year78.7%44.0%56.4%22.6%-5.3%-35.9%

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?

16.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRN (€6.16) is trading above our estimate of fair value (€3.75)

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 (11.7x).

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


Price to Earnings Growth Ratio

PEG Ratio: TRN is poor value based on its PEG Ratio (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 (0.7x).


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?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: TRN's earnings (4.1% per year) are forecast to grow slower than the Italian market (24.9% per year).

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

Revenue vs Market: TRN's revenue (4.2% per year) is forecast to grow slower than the Italian market (4.2% per year).

High Growth Revenue: TRN's revenue (4.2% 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%).


Next Steps

Past Performance

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

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRN has high quality earnings.

Growing Profit Margin: TRN's current net profit margins (32.3%) are higher than last year (30.7%).


Past Earnings Growth Analysis

Earnings Trend: TRN's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: TRN's earnings growth over the past year (6.8%) exceeds its 5-year average (6% per year).

Earnings vs Industry: TRN earnings growth over the past year (6.8%) exceeded the Electric Utilities industry 6.1%.


Return on Equity

High ROE: TRN's Return on Equity (17.5%) 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 (€1.8B) do not cover its short term liabilities (€2.5B).

Long Term Liabilities: TRN's short term assets (€1.8B) do not cover its long term liabilities (€9.9B).


Debt to Equity History and Analysis

Debt Level: TRN's debt to equity ratio (225.2%) is considered high.

Reducing Debt: TRN's debt to equity ratio has reduced from 301.5% to 225.2% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: TRN's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

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 (1.85%).

High Dividend: TRN's dividend (4.05%) is low compared to the top 25% of dividend payers in the Italian market (5.21%).


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 (66.2%), 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 (77.6% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Stefano Donnarumma (53yo)

0.17

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

NamePositionTenureCompensationOwnership
Stefano Donnarumma
CEO, GM & Director0.17yrno datano data
Agostino Scornajenchi
Group Chief Financial Officer3.5yrsno datano data
Nicoletta Buonomo
Administrationno datano datano data
Omar Al Bayaty
Head of External Communication & IR2.75yrsno datano data
Francesca Covone
Legal & Corporate Affairs Director and Board Secretaryno datano datano data
Giovanni Buttitta
External Relations & Communication Directorno datano datano data
Silvia Marinari
Human Resources2.83yrsno datano data
Alessandro Fiocco
Head of Procurement5.17yrsno datano data
Fulvio De Luca
Chief Risk Officer & Data Protection Officer1.25yrsno datano data
Luigi Michi
Chief Executive Officer of Terna Plusno datano datano data

2.8yrs

Average Tenure

Experienced Management: TRN's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefano Donnarumma
CEO, GM & Director0.17yrno datano data
Fabio Corsico
Independent Director6.17yrs€115.00kno data
Marco Giorgino
Independent Director1.17yrsno datano data
Mario Busso
Chairman of the Board of Statutory Auditorsno datano datano data
Gabriella Porcelli
Independent Director6.17yrs€115.00kno data
Yunpeng He
Director5.5yrsno datano data
Paola Giannotti
Independent Director3.25yrsno datano data
Valentina Bosetti
Chairwoman0.17yrno datano data
Alessandra Faella
Independent Director0.17yrno datano data
Giuseppe Ferri
Independent Director0.17yrno datano data

1.2yrs

Average Tenure

53yo

Average Age

Experienced Board: TRN's board of directors are not considered experienced ( 1.2 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: €12.372b
  • 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, Euro-area countries, 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 telecommunications, and operation and maintenance services for third parties, as well as undertakes private interconnector projects. Further, it owns the national transmission grid. Terna - Rete Elettrica Nazionale Società per Azioni was founded in 1999 and is based in Rome, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 20:51
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.