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Terna S.p.A.
(TRN)
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Rating:61Neutral
Price Target:
€10.50
▲(1.25% Upside)
Action:Reiterated
Date:08/26/26
The score is primarily supported by strong profitability and improving leverage trends, tempered by persistently weak/negative free cash flow that reduces financial flexibility. Technical signals are neutral to slightly soft, while valuation is supportive due to a reasonable P/E and a solid dividend yield.
Positive Factors
Regulated transmission model
The regulated TSO model provides a durable revenue foundation, with allowed returns and cost-recovery mechanisms tied to the transmission asset base. Continued grid development can expand the regulated asset base and support recurring earnings visibility.
Negative Factors
Persistently negative free cash flow
Repeatedly negative free cash flow means substantial capital investment and working-capital requirements continue to absorb cash despite positive earnings. This can increase reliance on external financing and constrain flexibility if funding conditions or project costs worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated transmission model
The regulated TSO model provides a durable revenue foundation, with allowed returns and cost-recovery mechanisms tied to the transmission asset base. Continued grid development can expand the regulated asset base and support recurring earnings visibility.
Read all positive factors
Terna S.p.A. (TRN) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€19.86B
Dividend Yield4%
Average Volume (3M)3.58M
Price to Earnings (P/E)18.0
Beta (1Y)0.23
Revenue Growth11.26%
EPS Growth0.93%
CountryIT
Employees7,260
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 Ratio4.36
Price to Book (P/B)2.34
Price to Sales (P/S)4.60
P/FCF Ratio-57.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€9.58Price Target Upside-7.59% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.29B | 3.95B | 3.65B | 3.15B | 2.92B | 2.57B |
| Gross Profit | 1.90B | 1.90B | 3.34B | 2.58B | 2.42B | 2.16B |
| EBITDA | 2.88B | 2.67B | 2.58B | 2.11B | 2.07B | 1.87B |
| Net Income | 1.11B | 1.11B | 1.06B | 885.40M | 857.00M | 789.40M |
Balance Sheet | ||||||
| Total Assets | 30.51B | 30.00B | 27.19B | 23.47B | 22.83B | 22.39B |
| Cash, Cash Equivalents and Short-Term Investments | 2.27B | 2.56B | 2.74B | 1.74B | 2.41B | 2.55B |
| Total Debt | 14.86B | 11.67B | 13.86B | 12.98B | 11.76B | 12.42B |
| Total Liabilities | 21.86B | 23.97B | 19.64B | 17.10B | 16.63B | 17.60B |
| Stockholders Equity | 8.63B | 7.77B | 7.52B | 6.32B | 5.15B | 4.68B |
Cash Flow | ||||||
| Free Cash Flow | -207.80M | -317.50M | -1.16B | -963.90M | 831.40M | -511.90M |
| Operating Cash Flow | 2.92B | 2.63B | 1.47B | 1.08B | 2.32B | 832.30M |
| Investing Cash Flow | -3.38B | -3.84B | -2.40B | -2.33B | -1.86B | -863.30M |
| Financing Cash Flow | 4.70M | 729.60M | 1.87B | 464.30M | 92.50M | -1.05B |
Terna S.p.A. Technical Analysis
Neutral
10.37
Price Trends
10.09
Negative
9.94
Negative
9.52
Positive
Market Momentum
-0.08
Negative
46.22
Neutral
61.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TRN, the sentiment is Neutral. The current price of 10.37 is above the 20-day moving average (MA) of 9.91, above the 50-day MA of 10.09, and above the 200-day MA of 9.52, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | €3.21B | 10.86 | 8.86% | 5.36% | -8.15% | -2.68% | |
65 Neutral | €8.99B | 10.65 | 18.43% | 4.30% | ― | ― | |
62 Neutral | €5.69B | 12.24 | 11.63% | 4.08% | -11.37% | -8.54% | |
61 Neutral | €19.86B | 17.99 | 14.55% | 3.82% | 11.26% | 0.93% | |
61 Neutral | €97.02B | 23.78 | 12.65% | 3.71% | -0.14% | -26.76% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IT:TRN
Terna S.p.A.
9.89
1.57
18.86%
IT:ENEL
Enel S.p.A.
9.51
1.93
25.39%
IT:HER
HERA S.p.A.
3.92
0.34
9.60%
IT:IRE
Iren S.p.A.
2.51
0.01
0.48%
IT:IG
Italgas S.p.A.
8.84
1.40
18.85%
IT:DEA
Distribuzione Elettrica Adriatica S.p.A
8.40
0.83
11.02%
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.