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Snam SpA
(OTC:SNMRY)
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Rating:62Neutral
Price Target:
$15.00
â–²(5.56% Upside)
Action:Reiterated
Date:07/29/26
The score is mainly constrained by financial fundamentals—high leverage and inconsistent/negative recent free cash flow—despite strong profitability. Valuation is supportive with a solid dividend yield and moderate P/E, while the latest earnings call was broadly positive with guidance reaffirmed and financing/credit improvements. Technicals are mixed to slightly weak near term as the stock trades below key shorter moving averages.
Positive Factors
Regulated business model
Snam's core earnings derive from regulated infrastructure (transmission, storage, regasification) with tariff-based revenue tied to asset availability rather than commodity prices. That structural model delivers predictable cash flows and recovery of operating costs plus a regulated return, supporting durable revenue visibility and long-term planning.
Negative Factors
High leverage
Sustained high leverage limits financial flexibility, increases sensitivity to interest rates and constrains headroom for additional investment. Even with improving metrics, elevated debt levels raise refinancing and covenant risk and make credit metrics more vulnerable to shocks, a structural constraint on strategic optionality.
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Positive Factors
Negative Factors
Regulated business model
Snam's core earnings derive from regulated infrastructure (transmission, storage, regasification) with tariff-based revenue tied to asset availability rather than commodity prices. That structural model delivers predictable cash flows and recovery of operating costs plus a regulated return, supporting durable revenue visibility and long-term planning.
Read all positive factors
Snam SpA (SNMRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.76B
Dividend Yield5.1%
Average Volume (3M)852.00
Price to Earnings (P/E)12.8
Beta (1Y)-0.07
Revenue Growth16.48%
EPS Growth-12.08%
CountryUS
Employees4,008
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.94
Shares Outstanding1,680,429,000
10 Day Avg. Volume0
30 Day Avg. Volume852
Financial Highlights & Ratios
PEG Ratio-5.79
Price to Book (P/B)2.05
Price to Sales (P/S)4.91
P/FCF Ratio-900.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Snam SpA Business Overview & Revenue Model
Company Description
Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure. It operates through Natural gas transportation; Natural gas storage; LNG regasification; and Market solutions segments. The ...
How the Company Makes Money
Snam primarily makes money through regulated infrastructure services in the natural gas value chain, where revenues are largely linked to the availability and operation of critical assets rather than commodity gas prices. Its key revenue streams t...
Snam SpA Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: solid adjusted EBITDA growth, resilient associate performance, strong cash generation, successful green and sustainability‑linked financing, improved credit metrics, and well‑advanced storage and strategic projects (LNG, CCS, biomethane). Challenges noted are largely manageable or non‑recurring (OLT and Italgas transactions driving higher net debt in the period), together with regulatory uncertainty (seventh gas period / ROSS evolution), macro and geopolitical price volatility, modest increases in D&A, financial charges and taxes, and concerns about current remuneration for LNG. On balance the positives — recurring earnings growth, clear guidance confirmation, financing success and storage readiness for winter — outweigh the negatives, which are mostly either transitional, regulatory or macro risk factors.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA of EUR 1,572 million for H1 2026, up 5% year‑on‑year (and +9% when netting a EUR 52 million 2024 deflator one‑off recorded in Q1 2025). Management confirms full‑year adjusted EBITDA guidance of ~EUR 3.1 billion.
Negative Updates
Net Debt Increase and Non‑Recurring Cash Outflows
Net debt rose to EUR 18.8 billion from EUR 17.5 billion at end‑2025 (change in net debt ~EUR 1.294 billion), driven by OLT acquisition, dividend payment (EUR 1,004 million), Italgas exchangeable refinancing cash out (EUR 432 million) and other non‑recurring items (EUR 913 million of the change).
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Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA of EUR 1,572 million for H1 2026, up 5% year‑on‑year (and +9% when netting a EUR 52 million 2024 deflator one‑off recorded in Q1 2025). Management confirms full‑year adjusted EBITDA guidance of ~EUR 3.1 billion.
Read all positive updates
Company Guidance
Snam confirmed 2026 guidance with adjusted EBITDA around EUR 3.1 billion and adjusted net income above EUR 1,450 million, upgraded net debt guidance to EUR 18.9 billion (net debt at end‑June ~EUR 18.8 billion) and reiterated full‑year financial expenses of EUR 335 million; it expects associate contributions of ~EUR 365 million and working‑capital change broadly stable at ~EUR 600 million. H1 metrics included adjusted EBITDA of EUR 1,572 million, adjusted net income of EUR 733 million, cash flow from operations ~EUR 1,832 million, investments ~EUR 1.6 billion (net investments EUR 1,154 million) and funds from operations ~EUR 1,232 million. Financing and balance‑sheet metrics: average cost of debt ~2.6%, fixed/floating mix 65/35 (aiming closer to 75% fixed by year‑end), sustainable finance 90% of committed financing, dual bond issuances of EUR 750m (green) + EUR 750m (sustainability‑linked), ~EUR 1.2 billion of bilateral facilities, a EUR 124m EIB tranche and an upsized sustainability‑linked RCF to EUR 25.1 billion. Operational/market guidance highlights storage ~70–75% today with a 90% refill target secured for winter, LNG ~32% of imports (110 cargoes) and 40% of Ravenna capacity sold forward for 10 years.Snam SpA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.04B | 3.85B | 3.55B | 4.29B | 3.52B | 3.29B |
| Gross Profit | 4.33B | 3.92B | 3.12B | 2.87B | 1.87B | 1.78B |
| EBITDA | 3.73B | 3.23B | 3.10B | 2.42B | 2.25B | 2.25B |
| Net Income | 1.57B | 1.27B | 1.26B | 1.14B | 671.00M | 1.50B |
Balance Sheet | ||||||
| Total Assets | 38.16B | 37.00B | 35.79B | 33.52B | 32.47B | 27.36B |
| Cash, Cash Equivalents and Short-Term Investments | 2.94B | 2.04B | 1.81B | 1.38B | 1.76B | 1.34B |
| Total Debt | 22.80B | 19.54B | 18.36B | 16.65B | 13.68B | 15.36B |
| Total Liabilities | 29.85B | 27.72B | 26.82B | 25.84B | 24.95B | 20.12B |
| Stockholders Equity | 8.27B | 9.24B | 8.93B | 7.63B | 7.47B | 7.20B |
Cash Flow | ||||||
| Free Cash Flow | 562.06M | -21.00M | -1.00B | -1.68B | 2.79B | 94.00M |
| Operating Cash Flow | 2.49B | 2.69B | 1.81B | -135.00M | 4.11B | 1.34B |
| Investing Cash Flow | -2.65B | -2.85B | -2.68B | -2.23B | -1.36B | -1.64B |
| Financing Cash Flow | 153.20M | 108.54M | 1.29B | 1.99B | -2.32B | -1.41B |
Snam SpA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $28.84B | 21.02 | 7.77% | 2.16% | 8.81% | 13.54% | |
69 Neutral | $5.84B | 17.08 | 14.42% | 3.16% | 8.52% | -18.44% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $6.47B | 13.93 | 13.11% | 2.69% | -48.15% | 105.44% | |
64 Neutral | $7.74B | 12.12 | 12.77% | 4.07% | 0.52% | 20.56% | |
62 Neutral | $22.76B | 12.80 | 13.10% | 4.88% | 16.48% | -12.08% | |
58 Neutral | $21.30B | 22.00 | 10.37% | 2.53% | 15.01% | 8.33% |
* Utilities Sector Average
SNMRY
Snam SpA
13.47
1.91
16.52%
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NJR
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NI
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42.91
1.65
3.99%
SWX
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90.67
14.32
18.75%
UGI
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35.54
1.53
4.49%
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.