Terna S.p.A. (TRN) AI Stock Analysis

• Market Cap: €17.03B
• Dividend Yield: 4.67%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.32
• Revenue Growth: 10.18%
• EPS Growth: 8.43%
• Country: IT
• Employees: 6,376
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Electric
• EPS (TTM): 0.16
• Shares Outstanding: 2,009,992,000
• 10 Day Avg. Volume: 2,614,495
• 30 Day Avg. Volume: 2,693,486
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €8.76
• Price Target Upside: 3.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: €9.50 ▲(12.03% Upside)

Terna S.p.A. scores well due to its strong financial performance, characterized by robust revenue growth and high profitability margins. The valuation is attractive with a reasonable P/E ratio and a strong dividend yield. However, technical analysis indicates a neutral trend, which slightly tempers the overall score.

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

Company Description

Terna S.p.A. (TRN) is an Italian electricity transmission and management company, primarily focused on the operation and maintenance of the national high-voltage electricity grid. As a key player in the energy sector, Terna is responsible for ensuring the security and efficiency of electricity supply across Italy. The company is also involved in the development of renewable energy sources and the integration of innovative technologies to enhance grid performance. Core services include electricity transmission, grid management, and the provision of ancillary services to support system stability.

How the Company Makes Money

Terna generates revenue primarily through the transmission of electricity over its high-voltage grid, charging fees to electricity producers and distributors for the use of its infrastructure. The company earns significant income from regulated tariffs set by the Italian regulatory authority, which govern the prices it can charge for its services. Additionally, Terna benefits from ancillary services, which are necessary for maintaining grid stability and reliability, and it receives compensation for these services from electricity market participants. Partnerships with other energy companies and investments in renewable energy projects also contribute to its revenue streams, as Terna seeks to enhance its network's capabilities to accommodate a growing share of renewables.

Terna S.p.A. Financial Statement Overview

Summary

Terna S.p.A. demonstrates strong financial health with robust revenue growth, high profitability margins, and effective capital management. The balance sheet shows a stable financial position, despite high leverage typical of the utilities sector. The company's cash flow generation is solid, although negative free cash flow due to high capital expenditures should be monitored.

Income Statement

Terna S.p.A. has exhibited strong revenue growth with a steady trajectory over recent years, increasing from €2.32 billion in 2019 to €3.68 billion in 2024. The company maintains high gross and net profit margins, consistently above industry averages, with a gross profit margin of 82.06% and a net profit margin of 28.84% in 2024. This indicates efficient cost management and robust profitability. EBIT and EBITDA margins also reflect solid operational performance. Overall, the income statement shows a positive growth trend and strong profitability.

Balance Sheet

Terna's balance sheet reveals a strong equity position with an equity ratio of 27.68% in 2024, indicating a high level of asset financing through equity. The debt-to-equity ratio stands at 1.84, reflecting significant leverage but is manageable within the utility sector norms. Return on equity is robust at 14.11%, signaling effective use of shareholder funds to generate profits. The balance sheet is stable with a healthy mix of debt and equity financing, though high leverage requires monitoring for potential risks.

Cash Flow

Terna's cash flow statement indicates stable operating cash flows relative to net income, with a ratio of 1.38 in 2024, suggesting strong cash generation capabilities. However, free cash flow is negative due to substantial capital expenditures, which are common in the utilities sector for infrastructure investments. While free cash flow growth is a concern, the company maintains positive operating cash flows, supporting ongoing operations and dividend commitments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.15B	2.92B	2.57B	2.40B
Gross Profit	3.02B	2.58B	2.42B	2.16B	2.06B
EBITDA	2.57B	2.11B	2.04B	1.83B	1.73B
Net Income	1.06B	885.40M	857.00M	789.40M	785.50M
Balance Sheet
Total Assets	27.19B	23.47B	22.83B	22.39B	20.70B
Cash, Cash Equivalents and Short-Term Investments	2.74B	1.74B	2.41B	2.55B	3.31B
Total Debt	13.86B	12.98B	11.76B	12.42B	12.25B
Total Liabilities	19.64B	17.10B	17.58B	17.60B	16.28B
Stockholders Equity	7.52B	6.32B	5.15B	4.68B	4.37B
Cash Flow
Free Cash Flow	-1.16B	-963.90M	831.40M	-511.90M	-245.20M
Operating Cash Flow	1.47B	1.08B	2.32B	832.30M	941.40M
Investing Cash Flow	-2.40B	-2.33B	-1.86B	-863.30M	-1.39B
Financing Cash Flow	1.87B	464.30M	92.50M	-1.05B	2.08B

Terna S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TRN, the sentiment is Negative. The current price of 8.48 is below the 20-day moving average (MA) of 8.55, below the 50-day MA of 8.51, and above the 200-day MA of 8.09, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TRN.

Terna S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRN	72 Outperform	€17.03B	15.39	19.67%	4.67%	10.18%	8.43%
Sector *	66 Neutral	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
0P3O	―	€1.00B	11.87	26.22%	―	―	―
0N9S	―	€44.70B	18.24	5.02%	―	―	―
0NQP	―	€17.11B	12.25	17.62%	―	―	―

Terna S.p.A. Corporate Events

Terna Launches ESG-Linked Share Buyback Program

Terna S.p.A. has announced the initiation of an ESG-linked share buyback program, which will run from September 8 to November 7, 2025, with a maximum expenditure of 9 million euros. This program aims to support the Performance Share Plan 2025-2029 and is part of Terna’s strategy to reinforce its commitment to sustainability, benefiting its stakeholders by linking share buybacks to the achievement of specific ESG objectives.

The most recent analyst rating on (IT:TRN) stock is a Hold with a EUR9.00 price target. To see the full list of analyst forecasts on Terna S.p.A. stock, see the IT:TRN Stock Forecast page.

Terna Releases Half-Year Financial Report for 2025

Terna S.p.A. has announced the availability of its Half-Year Financial Report for the period ending June 30, 2025, following approval by its Board of Directors. The report, which includes an audit review, is accessible to the public through the company’s website and other authorized platforms, reflecting Terna’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (IT:TRN) stock is a Hold with a EUR9.25 price target. To see the full list of analyst forecasts on Terna S.p.A. stock, see the IT:TRN Stock Forecast page.

Terna S.p.A. Achieves Record Investments and Financial Growth in H1 2025

Terna S.p.A. reported significant growth in its financial performance for the first half of 2025, with revenues increasing by 8% and investments reaching over 1.3 billion euros, marking a 26.6% rise compared to the previous year. This investment surge underscores Terna’s strategic focus on enhancing the national electric system’s safety and facilitating the energy transition, reflecting positively on its industrial plan and stakeholder confidence.

The most recent analyst rating on (IT:TRN) stock is a Hold with a EUR9.25 price target. To see the full list of analyst forecasts on Terna S.p.A. stock, see the IT:TRN Stock Forecast page.

Terna S.p.A. Launches First European Green Bond

Terna S.p.A. successfully launched its first European Green Bond, raising 750 million euros with a six-year duration and a 3% coupon. The bond, part of Terna’s Euro Medium Term Notes Program, received strong market interest, with demand nearly five times the offer, and will fund eligible green projects, supporting Terna’s strategy of combining sustainability with growth.

The most recent analyst rating on (IT:TRN) stock is a Hold with a EUR9.25 price target. To see the full list of analyst forecasts on Terna S.p.A. stock, see the IT:TRN Stock Forecast page.

Terna Secures 1 Billion Euro Financing for Adriatic Link

Terna S.p.A. has announced the conclusion of agreements for financing guaranteed by SACE S.p.A, amounting to approximately 1 billion euros, to support the implementation of the Adriatic Link project. This operation, involving related parties, was deemed of greater importance due to the significant value of the guarantees, but was excluded from the related parties procedure as it falls under ordinary operations at market conditions.

The most recent analyst rating on (IT:TRN) stock is a Hold with a EUR9.25 price target. To see the full list of analyst forecasts on Terna S.p.A. stock, see the IT:TRN Stock Forecast page.