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

• Market Cap: €16.93B
• Dividend Yield: 5.65%
• Average Volume (3M): 8.58M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.45
• Revenue Growth: -16.40%
• EPS Growth: 10.90%
• Country: IT
• Employees: 3,856
• Sector: Energy
• Sector Strength: 47
• Industry: Regulated Gas
• EPS (TTM): N/A
• Shares Outstanding: 3,360,858,000
• 10 Day Avg. Volume: 6,225,961
• 30 Day Avg. Volume: 8,578,647
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.24
• Price Target Upside: 3.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

SNAM S.p.A. is a stable company with strong profitability and operational efficiency. While it faces challenges with declining revenues and negative free cash flow, its stock is supported by a positive technical outlook and attractive valuation. The high dividend yield further enhances its appeal to income-focused investors.

Positive Factors

Energy Transition

Gas is needed to support the energy transition, which is a positive factor for Snam.

Financial Performance

Net income is expected to increase by 15% year-over-year, thanks to higher EBITDA and contribution from equity associates.

Strategic Opportunities

Snam has opportunities in Germany after acquiring a stake in Open Grid Europe, with a focus on green hydrogen and CO2 storage.

Negative Factors

Interest Costs

The expected higher interest costs and lower contribution from equity associates partially offset the positive operating performance.

Revenue Decline

FY24E revenues should decrease mainly due to much lower revenues from the energy transition.

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

Company Description

SNAM S.p.A. (SRG) is a leading energy infrastructure company based in Italy, specializing in the transmission and storage of natural gas. The company operates through various sectors, including gas transportation, storage, and regasification services, and is committed to facilitating the energy transition towards a more sustainable future. SNAM is a key player in the European energy market, with a vast network of pipelines and storage facilities that support the secure and efficient distribution of natural gas across the continent.

How the Company Makes Money

SNAM S.p.A. generates revenue primarily through its extensive network of natural gas transportation and storage services. The company earns money by charging fees for the transportation of natural gas through its pipelines and for the storage of gas in its facilities. Additionally, SNAM operates regasification terminals that convert liquefied natural gas (LNG) back into a gaseous state for distribution, providing another revenue stream. The company's earnings are further supported by long-term contracts with energy providers and partnerships with other infrastructure operators, ensuring stable and predictable cash flows. SNAM's strategic investments in renewable energy projects and innovative technologies also contribute to its revenue, aligning with its goals for sustainable growth and energy transition.

SNAM S.p.A. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.29B	3.50B	3.29B	2.75B	2.63B
	Gross Profit
2.87B	1.87B	1.78B	1.70B	1.68B
	EBIT
2.62B	1.34B	1.41B	1.37B	1.45B
	EBITDA
2.42B	2.23B	2.25B	2.16B	2.18B
	Net Income Common Stockholders
1.14B	671.00M	1.50B	1.10B	1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.38B	1.76B	1.34B	3.04B	2.85B
	Total Assets
33.61B	32.47B	27.36B	26.13B	24.48B
	Total Debt
16.65B	13.68B	15.36B	15.94B	14.77B
	Net Debt
15.27B	11.92B	14.02B	12.89B	11.92B
	Total Liabilities
25.93B	24.95B	20.12B	19.66B	18.23B
	Stockholders Equity
7.63B	7.47B	7.20B	6.47B	6.25B
Cash Flow		Free Cash Flow
-1.68B	2.79B	94.00M	431.00M	532.00M
	Operating Cash Flow
-135.00M	4.11B	1.34B	1.60B	1.49B
	Investing Cash Flow
-2.23B	-1.36B	-1.64B	-1.64B	-1.00B
	Financing Cash Flow
1.99B	-2.32B	-1.41B	233.00M	494.00M

SNAM S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SRG, the sentiment is Positive. The current price of 5.06 is above the 20-day moving average (MA) of 4.86, above the 50-day MA of 4.73, and above the 200-day MA of 4.42, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.31 is Neutral, neither overbought nor oversold. The STOCH value of 85.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SRG.

SNAM S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRN	78 Outperform	€17.55B	16.54	16.33%	3.94%	17.85%	19.80%
SRG	75 Outperform	€16.93B	13.48	16.18%	5.65%	-16.40%	10.90%
TEN	74 Outperform	€17.58B	9.65	10.53%	4.19%	-14.41%	-44.84%
ENEL	73 Outperform	€78.17B	11.58	27.10%	5.58%	-17.34%	104.14%
ENI	67 Neutral	€38.70B	15.07	4.83%	7.72%	-1.16%	-23.76%
ISP	61 Neutral	€84.61B	9.98	13.42%	6.77%	6.32%	17.08%
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%