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Snam SpA (SNMRY)
OTHER OTC:SNMRY
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Snam SpA
(OTC:SNMRY)
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Rating:69Neutral
Price Target:
$13.00
â–²(10.92% Upside)
Snam SpA's overall stock score reflects a balance of strong financial performance and positive earnings call sentiment, offset by technical analysis indicating bearish trends and financial risks from high debt levels. The fair valuation and attractive dividend yield provide additional support to the score.
Snam SpA (SNMRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.77B
Dividend Yield3.98%
Average Volume (3M)5.58K
Price to Earnings (P/E)13.1
Beta (1Y)0.04
Revenue Growth-7.51%
EPS Growth31.31%
CountryUS
Employees3,971
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.50
Shares Outstanding1,680,429,000
10 Day Avg. Volume6,316
30 Day Avg. Volume5,585
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue23.47
Enterprise Value/Gross Profit22.22
Enterprise Value/Ebitda15.97
Forecast
1Y Price Target
$13.00Price Target Upside10.92% Upside
Rating ConsensusHold
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: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance, including an increase in gas demand and LNG imports, alongside positive sustainability efforts and a credit rating upgrade. However, challenges were noted in rising net debt and ongoing regulatory pressures. The overall sentiment is cautiously optimistic, with a focus on future growth and stability.Q2-2025 Updates
Positive Updates
Strong Rebound in Gas Demand
Gas demand in Italy increased by 6% compared to the same period last year, marking the first rebound in 4 years, with a notable 12% growth in the thermoelectric sector.
Significant LNG Import Growth
Liquefied natural gas imports rose by 2.4 billion cubic meters, a significant 32% increase, supported by new regasification terminals in Piombino and Ravenna.
Solid Financial Performance
Adjusted EBITDA increased by 5.3% year-on-year to EUR 1.492 billion, and adjusted net income rose by 8.5% to EUR 750 million.
Positive Rating Upgrade
Standard & Poor's raised Snam's rating to A-, confirming the company's strong credit profile.
Sustainability Progress
Sustainable finance reached 86% of the total, and the company expects a 20% reduction in Scope 1 and 2 CO2 emissions compared to 2022.
Negative Updates
Increased Net Debt
Net debt reached EUR 17.6 billion, primarily due to investments and dividend payments.
Regulatory and Financial Pressures
Higher depreciation and financial charges partially offset the growth in adjusted net income. Additionally, the company is conducting a thorough review of potential upsides and risks.
Company Guidance
In the Snam First Half 2025 Consolidated Results Conference Call, several key financial metrics and guidance updates were provided. Snam's adjusted EBITDA reached EUR 1.492 billion, reflecting a year-on-year increase of 5.3%, driven by growth in regulated revenues. Adjusted net income stood at EUR 750 million, up 8.5% from the previous year, due to higher EBITDA and contributions from associates, partly offset by increased depreciation and financial charges. The company's net debt was reported at EUR 17.6 billion, with an average cost of debt stable at 2.5%. Investment for the period amounted to EUR 1.122 billion. Notably, the guidance for full-year 2025 does not yet include positive impacts from the 2024 deflator update, valued at approximately EUR 52 million, nor the shift to the Italian IPCA index for RAB revaluation starting in 2025, estimated to be around EUR 40 million. The CEO expressed confidence in potentially exceeding the full-year guidance, with further updates anticipated in November.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
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.65
Positive
| 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
Negative
11.72
Price Trends
11.97
Negative
11.81
Negative
10.65
Positive
Market Momentum
-0.06
Positive
36.47
Neutral
6.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNMRY, the sentiment is Negative. The current price of 11.72 is below the 20-day moving average (MA) of 11.97, below the 50-day MA of 11.97, and above the 200-day MA of 10.65, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 6.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNMRY.
Snam SpA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 26.77B | 23.03 | 8.65% | 2.09% | 12.90% | 7.70% | |
76 Outperform | 4.76B | 11.57 | 13.17% | 3.86% | 21.88% | 71.35% | |
69 Neutral | $19.77B | 13.08 | 17.05% | 3.98% | -7.51% | 31.31% | |
67 Neutral | 5.71B | 29.54 | 5.27% | 3.18% | -10.07% | 5.98% | |
67 Neutral | 19.95B | 22.52 | 9.98% | 2.64% | 16.98% | 12.45% | |
61 Neutral | 7.06B | 17.31 | 8.58% | 4.60% | -0.52% | -39.42% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
SNMRY
Snam SpA
11.72
1.81
18.26%
ATO
Atmos Energy
166.46
32.71
24.46%
NJR
New Jersey Resources
47.28
2.46
5.49%
NI
Nisource
41.82
8.67
26.15%
SWX
Southwest Gas
77.98
6.61
9.26%
UGI
UGI
32.64
9.12
38.78%
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.