Terna S.p.A. (IT:TRN)
:TRN
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Terna S.p.A.
(TRN)
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Rating:62Neutral
Price Target:
€10.50
▲(5.11% Upside)
Action:Downgraded
Date:05/26/26
The score is primarily constrained by consistently negative free cash flow despite strong profitability, which can pressure funding needs. This is partly offset by stable technical positioning above key moving averages and a reasonable valuation supported by a solid dividend yield.
Positive Factors
Regulated TSO business model
Terna’s core role as Italy’s transmission system operator gives structurally predictable, tariff-backed cash flows tied to RAB and an allowed return. That regulatory underpinning supports steady, long-term revenue and investment recovery, reducing exposure to pure market commodity cycles.
Negative Factors
Consistent negative free cash flow
Persistent negative free cash flow despite strong net income indicates heavy, ongoing capex and/or working-capital absorption that erodes internally generated liquidity. This creates a recurring funding requirement that can pressure covenant headroom, increase borrowing needs, and constrain optional spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated TSO business model
Terna’s core role as Italy’s transmission system operator gives structurally predictable, tariff-backed cash flows tied to RAB and an allowed return. That regulatory underpinning supports steady, long-term revenue and investment recovery, reducing exposure to pure market commodity cycles.
Read all positive factors
Terna S.p.A. (TRN) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€20.65B
Dividend Yield4.41%
Average Volume (3M)3.58M
Price to Earnings (P/E)18.6
Beta (1Y)0.27
Revenue Growth9.26%
EPS Growth4.69%
CountryIT
Employees6,376
SectorGeneral
Sector StrengthN/A
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.55
Shares Outstanding2,009,992,000
10 Day Avg. Volume3,751,325
30 Day Avg. Volume3,582,329
Financial Highlights & Ratios
PEG Ratio4.14
Price to Book (P/B)2.24
Price to Sales (P/S)4.31
P/FCF Ratio-54.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€9.59Price Target Upside-3.99% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.55
Revenue Forecast (FY)€4.41B
Terna S.p.A. Business Overview & Revenue Model
Company Description
Terna - Rete Elettrica Nazionale Società per Azioni, along with its subordinate entities, is engaged in the crucial activities of electricity transmission and dispatching, with operations spanning Italy, other Euro-area nations, and international ...
How the Company Makes Money
Terna primarily makes money through regulated revenues earned as the operator and owner (or concession holder) of Italy’s high-voltage electricity transmission infrastructure and as the provider of system operation (dispatching) services. Under th...
Terna S.p.A. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.03B | 3.65B | 3.15B | 2.92B | 2.57B |
| Gross Profit | 1.85B | 3.34B | 2.58B | 2.42B | 2.16B |
| EBITDA | 2.75B | 2.58B | 2.11B | 2.07B | 1.87B |
| Net Income | 1.11B | 1.06B | 885.40M | 857.00M | 789.40M |
Balance Sheet | |||||
| Total Assets | 0.00 | 27.19B | 23.47B | 22.83B | 22.39B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 2.74B | 1.74B | 2.41B | 2.55B |
| Total Debt | 11.67B | 13.86B | 12.98B | 11.76B | 12.42B |
| Total Liabilities | 0.00 | 19.64B | 17.10B | 16.63B | 17.60B |
| Stockholders Equity | 7.77B | 7.52B | 6.32B | 5.15B | 4.68B |
Cash Flow | |||||
| Free Cash Flow | -317.50M | -1.16B | -963.90M | 831.40M | -511.90M |
| Operating Cash Flow | 2.63B | 1.47B | 1.08B | 2.32B | 832.30M |
| Investing Cash Flow | -3.84B | -2.40B | -2.33B | -1.86B | -863.30M |
| Financing Cash Flow | 729.60M | 1.87B | 464.30M | 92.50M | -1.05B |
Terna S.p.A. Technical Analysis
Positive
9.99
Price Trends
10.05
Positive
9.85
Positive
9.32
Positive
Market Momentum
0.05
Negative
62.79
Neutral
90.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TRN, the sentiment is Positive. The current price of 9.99 is above the 20-day moving average (MA) of 9.97, below the 50-day MA of 10.05, and above the 200-day MA of 9.32, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 90.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TRN.
Terna S.p.A. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | €3.54B | 12.23 | 9.06% | 5.06% | -5.65% | 4.14% | |
63 Neutral | €10.82B | 16.09 | ― | 4.05% | ― | ― | |
62 Neutral | €20.65B | 18.63 | 14.70% | 4.41% | 9.26% | 4.69% | |
62 Neutral | €99.47B | 24.82 | 23.22% | 5.05% | -3.07% | -42.04% | |
58 Neutral | €5.54B | 12.04 | 13.30% | 3.76% | -13.76% | -9.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IT:TRN
Terna S.p.A.
10.28
1.83
21.60%
IT:ENEL
Enel S.p.A.
9.79
2.26
29.93%
IT:HER
HERA S.p.A.
3.79
-0.36
-8.61%
IT:IRE
Iren S.p.A.
2.76
0.14
5.50%
IT:IG
Italgas S.p.A.
10.65
3.97
59.50%
IT:DEA
Distribuzione Elettrica Adriatica S.p.A
8.25
1.02
14.14%
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.