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SNAM S.p.A. (IT:SRG)
:SRG
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SNAM S.p.A. (SRG) AI Stock Analysis

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IT:SRG

SNAM S.p.A.

(SRG)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
€6.50
▲(4.17% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid profitability but meaningfully offset by weak and inconsistent free cash flow and a leveraged balance sheet. Technical indicators point to near-term weakness (below key moving averages with negative MACD), while a reasonable P/E and decent dividend yield provide valuation support.
Positive Factors
Regulated, tariff-based business model
SNAM’s core earnings derive from regulated tariffs for transport, storage and regasification, creating durable, contract-like cash flows less tied to commodity prices. This predictable revenue base supports multi-year capex recovery and lowers operational earnings volatility versus merchant exposures.
Negative Factors
Rising leverage and high debt load
Debt growth to a large, infrastructure‑style level increases interest‑rate sensitivity and limits financial flexibility for further investments or shocks. A ~2x leverage profile constrains strategic optionality and heightens refinancing and rate risks over the medium term, despite regulated cash flows.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated, tariff-based business model
SNAM’s core earnings derive from regulated tariffs for transport, storage and regasification, creating durable, contract-like cash flows less tied to commodity prices. This predictable revenue base supports multi-year capex recovery and lowers operational earnings volatility versus merchant exposures.
Read all positive factors

SNAM S.p.A. (SRG) vs. iShares MSCI Italy ETF (EWI)

SNAM S.p.A. Business Overview & Revenue Model

Company Description
Snam S.p.A., an Italian entity with a significant international footprint, specializes in critical natural gas infrastructure. Its primary operations span Natural Gas Transportation, Liquefied Natural Gas (LNG) Regasification, and Natural Gas Stor...
How the Company Makes Money
SNAM makes money primarily through regulated infrastructure revenues tied to providing network services in Italy. The company’s largest earnings base comes from natural gas transportation: it charges tariffs for shipping gas through its pipeline n...

SNAM S.p.A. Financial Statement Overview

Summary
Profitability is strong with very high margins and slightly improving net income, but the overall financial profile is constrained by rising leverage and weak cash conversion. Recent free cash flow has been near breakeven/negative despite solid earnings, making cash flow reliability the main drag on the financial score.
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.85B3.55B4.24B3.50B3.29B
Gross Profit3.92B3.12B2.22B1.87B1.78B
EBITDA3.23B3.10B2.33B2.23B2.26B
Net Income1.27B1.26B1.14B671.00M1.50B
Balance Sheet
Total Assets37.00B35.79B33.52B32.47B27.36B
Cash, Cash Equivalents and Short-Term Investments2.04B1.81B1.38B1.76B1.34B
Total Debt19.54B18.36B16.65B13.68B15.36B
Total Liabilities27.72B26.82B25.93B24.95B20.12B
Stockholders Equity9.24B8.93B7.63B7.47B7.20B
Cash Flow
Free Cash Flow-21.00M-1.00B-1.68B2.79B94.00M
Operating Cash Flow2.69B1.81B-135.00M4.11B1.34B
Investing Cash Flow-2.96B-2.68B-2.23B-1.36B-1.64B
Financing Cash Flow113.00M1.29B1.99B-2.32B-1.41B

SNAM S.p.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.24
Price Trends
50DMA
6.17
Negative
100DMA
6.26
Negative
200DMA
5.91
Positive
Market Momentum
MACD
-0.06
Positive
RSI
35.45
Neutral
STOCH
18.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SRG, the sentiment is Negative. The current price of 6.24 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 6.17, and above the 200-day MA of 5.91, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:SRG.

SNAM S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
€70.14B13.555.25%4.57%-3.05%122.49%
63
Neutral
€9.09B19.8818.43%4.30%
62
Neutral
€99.52B27.2212.65%3.71%-3.07%-42.04%
62
Neutral
€20.03B18.1314.55%3.82%11.26%0.93%
61
Neutral
€19.74B12.809.40%3.36%8.61%-17.99%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:SRG
SNAM S.p.A.
5.95
1.07
21.85%
IT:EDNR
Edison Spa
1.91
-0.18
-8.44%
IT:ENEL
Enel S.p.A.
9.91
2.45
32.76%
IT:ENI
ENI S.p.A.
23.70
9.83
70.93%
IT:TRN
Terna S.p.A.
10.04
1.89
23.23%
IT:IG
Italgas S.p.A.
9.04
2.01
28.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026