Snam SpA (SNMRY) AI Stock Analysis

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Snam SpA

(OTC:SNMRY)

Rating:73Outperform

Price Target:

$13.00

▲(9.61% Upside)

Snam SpA's overall stock score of 73 reflects its solid financial performance, reasonable valuation metrics, and positive earnings call highlights, particularly in strategic project execution and sustainability initiatives. However, technical analysis indicates current bearish momentum, and financial risks due to high debt levels and challenges in revenue growth slightly dampen the outlook.

Snam SpA (SNMRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$19.91B

Dividend Yield3.96%

Average Volume (3M)2.39K

Price to Earnings (P/E)13.1

Beta (1Y)0.06

Revenue Growth-7.51%

EPS Growth31.31%

CountryUS

Employees3,971

SectorUtilities

Sector Strength88

IndustryRegulated Gas

Share Statistics

EPS (TTM)0.50

Shares Outstanding1,680,429,000

10 Day Avg. Volume3,287

30 Day Avg. Volume2,392

Financial Highlights & Ratios

PEG Ratio0.96

Price to Book (P/B)1.60

Price to Sales (P/S)4.03

P/FCF Ratio-14.27

Enterprise Value/Market Cap2.12

Enterprise Value/Revenue23.47

Enterprise Value/Gross Profit22.22

Enterprise Value/Ebitda15.97

Forecast

1Y Price Target

$13.00

Price Target Upside9.61% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Snam SpA Business Overview & Revenue Model

Company DescriptionSnam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. The company operates through Natural Gas Transportation, Liquefied Natural Gas (LNG) Regasification, and Natural Gas Storage segments. It provides natural gas transportation and dispatching services with approximately 32,700 kilometers of high-and medium-pressure gas pipelines; and owns and manages LNG regasification plants. The company also offers natural gas storage services through an integrated group of infrastructure comprising deposits, wells, gas treatment and compression plants, and the operational dispatching systems; and operates nine storage concessions, including five in Lombardy, three in Emilia-Romagna, and one in Abruzzo. In addition, it engages in the lease and maintenance of fibre optic telecommunications cables, as well as provides integrated services in the natural gas mobility sector; energy efficiency solutions for residential, industrial, tertiary, and public administration sectors; and management of biogas and biomethane plants. Further, the company offers engineering and project management services; and supervision of infrastructure planning activities. It also operates in Albania, Saudi Arabia, Austria, China, Egypt, the United Arab Emirates, France, Greece, the United Kingdom, and the United States. The company was formerly known as Snam Rete Gas S.p.A. and changed its name to Snam S.p.A. in January 2012. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy.

How the Company Makes MoneySnam generates revenue primarily through regulated activities in the natural gas sector. Key revenue streams include the transportation of natural gas through its extensive pipeline network, which is regulated by the Italian government and European Union guidelines. The company earns fees for the transportation of gas, which are set based on established tariff structures. Additionally, Snam derives income from its storage services, where it charges customers for the ability to store natural gas in its facilities. The regasification of liquefied natural gas (LNG) at its terminals also contributes to its revenue, as it charges for the service of converting LNG back into gas for distribution. Significant partnerships with other energy companies and investments in infrastructure projects further enhance Snam's earnings potential, as they enable access to new markets and technologies that align with the evolving energy landscape.

Snam SpA Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: 1.37%|

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance and progress in strategic projects, including significant increases in LNG imports and sustainability initiatives. However, challenges such as higher operating costs and regulatory changes were noted. Overall, the positive aspects outweigh the negatives.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Adjusted EBITDA of EUR 1.492 billion, up by 5.3% year-on-year, and adjusted net income at EUR 750 million, an increase of 8.5% year-on-year.

Significant Increase in LNG Imports

Liquefied natural gas imports rose by 2.4 billion cubic meters with a significant 32% increase, accounting for over 30% of Italy's gas imports.

Progress on Strategic Projects

Completion of 42% of the Adriatic Line pipeline installation and the BW Singapore regasification unit began operations in May.

Sustainability Initiatives

32% of CapEx aligns with EU taxonomy and 61% with SDGs for H1 2025. Expected reduction in '25 Scope 1 and 2 CO2 emissions by approximately 20% versus 2022.

Successful Financing Activities

Successfully issued the first U.S. dollar multi-tranche Sustainability-Linked bond totaling USD 2 billion and a EUR 1 billion first EU green bond.

Negative Updates

Higher Operating Costs

Increase in gas infrastructure operating costs by about EUR 30 million, mainly attributable to lower costs due to inflation and new hires.

Higher Depreciation and Financial Charges

Higher depreciation and financial charges partially offset the increase in adjusted net income.

Challenges in Regulatory Environment

Regulatory updates included a decrease in WACC, which impacted revenues negatively.

Company Guidance

During the Snam First Half 2025 Consolidated Results Conference Call, CEO Agostino Scornajenchi provided a comprehensive overview of the company's performance and strategic direction. Key metrics highlighted include a 5.3% increase in adjusted EBITDA to EUR 1.492 billion and an 8.5% rise in adjusted net income to EUR 750 million, attributed to higher regulated revenues and contributions from associates. Snam's net debt stood at EUR 17.6 billion, with an average cost of debt stable at 2.5%. The company also reported significant progress in its infrastructure projects, including the completion of 42% of the Adriatic Line and the operational start of the BW Singapore regasification unit in May. Additionally, Snam has maintained robust sustainability metrics, with 32% of CapEx aligned with the EU taxonomy and 61% with SDGs, and has made strides in decarbonization efforts, expecting a 20% reduction in Scope 1 and 2 CO2 emissions compared to 2022. The call also touched on strategic considerations around energy security and diversification in response to geopolitical shifts, with LNG imports now accounting for over 30% of Italy's gas supply, and the company's guidance does not yet reflect the positive impacts of recent regulatory updates, suggesting potential upside.

Snam SpA Financial Statement Overview

Summary

Snam SpA demonstrates solid operational profitability but faces challenges in revenue growth and free cash flow generation. The high debt levels relative to equity indicate potential financial risk, though the company has managed to maintain a decent return on equity. Overall, Snam SpA is financially stable but should focus on improving revenue growth and managing debt levels to ensure long-term sustainability.

Income Statement

Positive

Snam SpA has shown a strong gross profit margin and stable EBIT and EBITDA margins over the years, indicating efficient cost management and operational profitability. However, the company experienced a decline in total revenue in 2024 compared to 2023, affecting its revenue growth rate negatively.

Balance Sheet

Positive

The company's balance sheet reflects a high debt-to-equity ratio, which may pose a risk if interest rates rise or if the company faces declining cash flows. However, it maintains a reasonable return on equity, indicating effective use of shareholders' equity to generate profits.

Cash Flow

Positive

Snam SpA's cash flow statement shows a concerning trend with negative free cash flow in recent years impacted by significant capital expenditures. The company has managed to improve operating cash flow but still struggles with free cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.55B	4.29B	3.50B	3.29B	2.75B
Gross Profit	3.12B	2.87B	1.87B	1.78B	1.70B
EBITDA	3.10B	2.42B	2.07B	2.22B	2.13B
Net Income	1.26B	1.14B	671.00M	1.50B	1.10B
Balance Sheet
Total Assets	35.79B	33.52B	32.47B	27.36B	26.13B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.38B	1.76B	1.34B	3.04B
Total Debt	18.36B	16.65B	13.68B	15.36B	15.94B
Total Liabilities	26.82B	25.84B	24.95B	20.12B	19.66B
Stockholders Equity	8.93B	7.63B	7.47B	7.20B	6.47B
Cash Flow
Free Cash Flow	-1.00B	-1.68B	2.79B	94.00M	431.00M
Operating Cash Flow	1.81B	-135.00M	4.11B	1.34B	1.60B
Investing Cash Flow	-2.68B	-2.23B	-1.36B	-1.64B	-1.64B
Financing Cash Flow	1.29B	1.99B	-2.32B	-1.41B	233.00M

Snam SpA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.86

Price Trends

50DMA

11.81

Positive

100DMA

11.28

Positive

200DMA

10.16

Positive

Market Momentum

MACD

0.03

Negative

RSI

53.81

Neutral

STOCH

82.11

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNMRY, the sentiment is Positive. The current price of 11.86 is above the 20-day moving average (MA) of 11.83, above the 50-day MA of 11.81, and above the 200-day MA of 10.16, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNMRY.

Snam SpA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATO	78 Outperform	$26.37B	22.69	9.05%	2.08%	12.90%	7.70%
NJR	77 Outperform	$4.72B	11.47	18.03%	3.83%	21.88%	71.35%
UGI	75 Outperform	$7.55B	18.51	8.75%	4.27%	-0.52%	-39.42%
NI	74 Outperform	$19.91B	22.46	10.56%	2.62%	16.98%	12.45%
SNMRY	73 Outperform	$19.91B	13.08	17.05%	3.96%	-7.51%	31.31%
Sector *	67 Neutral	$17.80B	18.56	6.79%	3.44%	6.79%	9.13%
SWX	65 Neutral	$5.65B	29.21	5.41%	3.16%	-10.07%	5.98%

* Utilities Sector Average

Performance Comparison

SNMRY

Snam SpA

11.86

2.63

28.49%

ATO

Atmos Energy

165.04

39.37

31.33%

NJR

New Jersey Resources

47.20

4.74

11.16%

Nisource

42.15

11.49

37.48%

SWX

Southwest Gas

79.00

10.47

15.28%

UGI

35.14

12.92

58.15%

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 01, 2025