Morningstar

Snam SpA SRG

Morningstar Rating
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Stock XMIL Rating as of
€4.48 +0.01 (0.18%)
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As of Delayed Price Closed

Company Report

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European Utilities Rallied in Q3 on Falling Interest Rates; We See Further Upside Potential

Tancrede Fulop

While wholesale power prices stabilized, government bonds’ yields fell on weak economic indicators and lower inflation in the US and Europe. Second-quarter results were boosted by very favorable hydro conditions that led to some guidance upgrades. This goldilocks scenario bolstered a rally in European utilities, enabling them to massively outperform the market and recover much of their earlier underperformance.

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Price vs Fair Value

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SRG is trading at a 88% premium.
Price
€4.47
Fair Value
€5.80
Uncertainty
Low
1-Star Price
€6.64
5-Star Price
€5.38
Economic Moat
Gcr
Capital Allocation
Yhcrbtn

Bulls Say, Bears Say

Bulls

Snam has high earnings and dividend visibility as its main businesses earn regulated returns.

Bears

Investments in the energy transition do not strengthen the company’s moat, especially in biomethane and carbon capture and storage.

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Trading Information

Previous Close Price
€4.47
Day Range
€4.43–4.51
52-Week Range
€4.11–4.91
Bid/Ask
€4.43 / €4.49
Market Cap
€15.02 Bil
Volume/Avg
5.3 Mil / 5.9 Mil

Key Statistics

Price/Earnings (Normalized)
12.07
Price/Sales
3.78
Dividend Yield (Trailing)
6.31%
Dividend Yield (Forward)
7.57%
Total Yield
6.33%

Company Profile

Snam operates a network of about 38,000 kilometers of natural gas pipelines in Italy and abroad. It also holds 17.1% of European gas storage capacity and 13.5 billion cubic meters of LNG regasification capacity. Snam is investing in hydrogen, biofuels, carbon capture and storage, and energy efficiencies to prepare for the energy transition. Snam became independent from Eni in 2012 after the latter sold its stake to Cassa Depositi e Prestiti, a financial institution controlled by the Ministry of Economy and Finance.
Sector
Utilities
Industry
Utilities - Regulated Gas
Stock Style Box
Large Value
Total Number of Employees
3,803
Website
https://www.snam.it

Competitors

Valuation

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Metric
SRG
PPL
SSE
Price/Earnings (Normalized)
 12.0718.6011.52
Price/Book Value
 1.941.712.24
Price/Sales
 3.782.911.98
Price/Cash Flow
 6.4711.587.26
Price/Earnings
SRG
PPL
SSE

Financial Strength

Metric
SRG
PPL
SSE
Quick Ratio
 0.550.810.76
Current Ratio
 0.791.281.10
Interest Coverage
 4.822.358.21
Quick Ratio
SRG
PPL
SSE

Profitability

Metric
SRG
PPL
SSE
Return on Assets (Normalized)
 3.83%3.32%6.37%
Return on Equity (Normalized)
 16.00%9.28%20.08%
Return on Invested Capital (Normalized)
 7.98%6.23%9.01%
Return on Assets
SRG
PPL
SSE

Utilities - Regulated Gas Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Naturgy Energy Group SA ADR
GASNY
—Pzf$24.6 Bil
 Atmos Energy Corp
ATO
NwqhyhckdsNpqhf$21.7 Bil
 GAIL (India) Ltd DR
GAILF
—Jpv$18.0 Bil
 Snam SpA
SNMRF
—Pfxtdp$16.6 Bil
 Snam SpA ADR
SNMRY
—Cgjrwwp$16.6 Bil
 NiSource Inc
NI
SxjnjtgnPzldng$15.5 Bil
 Hong Kong and China Gas Co Ltd ADR
HOKCY
—Jsvlc$15.5 Bil
 China Resources Gas Group Ltd
CRGGF
—Wxxcxm$9.8 Bil
 New Jersey Resources Corp
NJR
DcfjshbczSdwwv$4.6 Bil
 New Fortress Energy Inc Class A
NFE
KsddlmhxQztq$2.5 Bil

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