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Snam SpA (SNMRY)
OTHER OTC:SNMRY
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Snam SpA
(OTC:SNMRY)
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Select Model
Rating:76Outperform
Price Target:
$14.00
â–²(5.98% Upside)
Snam SpA's strong earnings call and positive technical indicators are the most significant factors contributing to the score. Financial performance is stable but challenged by high debt levels and revenue growth issues. Valuation is balanced, with a reasonable P/E ratio and attractive dividend yield.
Positive Factors
Strong Financial Performance
The increase in adjusted EBITDA reflects Snam's ability to maintain operational efficiency and profitability, supporting long-term financial stability.
LNG Import Growth
The significant growth in LNG imports enhances Snam's market position and supports its role in meeting energy demands, indicating robust business model adaptation.
Sustainable Financing
The successful bond issuance underscores Snam's commitment to sustainable financing, enhancing its financial flexibility and aligning with global energy transition trends.
Negative Factors
High Debt Levels
Despite debt reduction efforts, high debt levels could limit financial flexibility and pose risks if interest rates rise, impacting long-term financial health.
Regulatory Uncertainty
Regulatory uncertainty could affect Snam's future financial performance and strategic planning, posing challenges to revenue stability and investment decisions.
Revenue Growth Challenges
Declining revenue growth indicates potential market challenges and could pressure Snam's ability to sustain its market position and profitability over time.
Snam SpA (SNMRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.15B
Dividend Yield3.55%
Average Volume (3M)852.00
Price to Earnings (P/E)14.6
Beta (1Y)-0.09
Revenue Growth-7.51%
EPS Growth31.31%
CountryUS
Employees3,971
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,680,429,000
10 Day Avg. Volume0
30 Day Avg. Volume852
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 Cap1.60
Enterprise Value/Revenue19.44
Enterprise Value/Gross Profit18.51
Enterprise Value/Ebitda15.10
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 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 its regulated activities in gas transportation, which involves the operation of a vast network of pipelines that transport natural gas across Italy and into other European markets. The company earns fees for transporting gas, which are set by regulatory authorities. Additionally, Snam operates storage facilities and earns revenues from the storage of natural gas, charging customers for the capacity used. Another significant revenue stream comes from regasification terminals, where liquefied natural gas (LNG) is converted back to gas for distribution. Snam also engages in partnerships with other energy companies and participates in projects aimed at enhancing energy efficiency and supporting renewable energy integration, which can further contribute to its earnings. The company's financial performance is supported by long-term contracts and regulated pricing mechanisms, providing a stable revenue base.
Snam SpA Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant growth in LNG imports, and strategic progress in sustainable financing and high storage levels. However, challenges remain with the ongoing regulatory uncertainty and the pending acquisition in Germany. Overall, the positive aspects of growth and financial stability outweigh the concerns.Q3-2025 Updates
Positive Updates
Increased Gas Demand
Gas demand in Italy rose by 2% compared to the same period last year, with significant growth in the thermoelectric sector and a sharp increase in exports, highlighting the importance of gas-fired power generation.
Significant Increase in LNG Imports
LNG imports rose by 38% year-on-year, contributing to over 30% of Italy's gas imports, driven by the full return to operation of the OLT terminal and the start-up of the new terminal in Ravenna.
Strong Financial Performance
Adjusted EBITDA increased by 6.6% year-on-year to EUR 2.227 billion, and adjusted net income grew double-digit to EUR 1.096 billion, driven by higher regulatory revenues and contributions from associates.
Successful Bond Issuance
Snam issued its first U.S. dollar multi-branch sustainability-linked bond totaling $2 billion and EUR 1 billion of EU Green bond, highlighting progress in sustainable financing.
Interim Dividend Increase
The Board approved an interim dividend for 2025 of EUR 0.1208 per share, representing a 4% increase compared to the previous year.
High Storage Levels
Italy's storage levels reached 92%, well above the European average, with further improvement to around 95%, ensuring preparedness for the winter season.
Improved Net Debt and Cost of Debt
Net debt was reduced to EUR 17.4 billion, with the average cost of debt remaining stable at 2.6%.
Negative Updates
Challenges in German Acquisition
The foreign direct investment clearance for the OGE acquisition in Germany is still ongoing, with uncertainty around the final decision as the long stop date approaches.
Regulatory Uncertainty
Uncertainty remains around the WACC update for 2026 and other regulatory components, which could impact future financial performance.
LNG Volume Guarantees
Concerns regarding the need for guaranteed volumes for LNG terminals, as current levels are only at 64%, impacting investment confidence.
Company Guidance
In the recent conference call, Snam provided a comprehensive update on its financial performance for the first nine months of 2025 and revised its full-year guidance. Notably, the company reported a 6.6% increase in adjusted EBITDA, reaching EUR 2.227 billion, and a double-digit growth in adjusted net income to EUR 1.096 billion, fueled by higher EBITDA and contributions from associates. Snam also highlighted a significant rise in LNG imports by 38% year-on-year, supported by operational LNG terminals, contributing to Italy's 92% gas storage levels, which surpass the European average. The guidance for 2025 was updated, with EBITDA projected at EUR 2.950 billion and net income at EUR 1.420 billion, reflecting regulatory impacts and strong cash flow management. Investment activities include approximately EUR 1.8 billion in CapEx, and the interim dividend was increased by 4% to EUR 0.1208 per share. The company also underscored its strategic focus on energy transition, with substantial progress in CCS projects and a robust energy transition backlog, while maintaining a stable cost of debt at 2.6%.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.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 3.55B | 4.29B | 3.52B | 3.29B | 2.77B |
| Gross Profit | 1.91B | 3.12B | 2.87B | 1.87B | 1.78B | 1.70B |
| EBITDA | 2.34B | 3.10B | 2.42B | 2.25B | 2.25B | 2.17B |
| Net Income | 674.00M | 1.26B | 1.14B | 671.00M | 1.50B | 1.10B |
Balance Sheet | ||||||
| Total Assets | 35.95B | 35.79B | 33.52B | 32.47B | 27.36B | 26.13B |
| Cash, Cash Equivalents and Short-Term Investments | 2.42B | 1.81B | 1.38B | 1.76B | 1.34B | 3.04B |
| Total Debt | 19.99B | 18.36B | 16.65B | 13.68B | 15.36B | 15.94B |
| Total Liabilities | 26.77B | 26.82B | 25.84B | 24.95B | 20.12B | 19.66B |
| Stockholders Equity | 9.14B | 8.93B | 7.63B | 7.47B | 7.20B | 6.47B |
Cash Flow | ||||||
| Free Cash Flow | -501.00M | -1.00B | -1.68B | 2.79B | 94.00M | 431.00M |
| Operating Cash Flow | 1.68B | 1.81B | -135.00M | 4.11B | 1.34B | 1.60B |
| Investing Cash Flow | -3.13B | -2.68B | -2.23B | -1.36B | -1.64B | -1.64B |
| Financing Cash Flow | 580.00M | 1.29B | 1.99B | -2.32B | -1.41B | 233.00M |
Snam SpA Technical Analysis
Positive
13.21
Price Trends
12.83
Positive
12.40
Positive
11.77
Positive
Market Momentum
0.07
Positive
58.86
Neutral
79.71
Neutral
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 13.21 is above the 20-day moving average (MA) of 13.16, above the 50-day MA of 12.83, and above the 200-day MA of 11.77, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNMRY.
Snam SpA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $22.15B | 14.57 | 17.05% | 3.55% | -7.51% | 31.31% | |
74 Outperform | $5.82B | 12.57 | 5.42% | 3.08% | -23.15% | 157.45% | |
70 Outperform | $8.18B | 12.32 | 14.87% | 3.94% | 1.10% | 140.04% | |
66 Neutral | $26.95B | 22.34 | 9.32% | 2.17% | 12.91% | 9.86% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $4.67B | 13.91 | 14.62% | 3.99% | 13.94% | 13.93% | |
64 Neutral | $19.55B | 21.64 | 10.23% | 2.73% | 19.62% | 12.87% |
* Utilities Sector Average
SNMRY
Snam SpA
13.21
4.69
55.05%
ATO
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166.70
30.09
22.03%
NJR
New Jersey Resources
46.31
1.63
3.65%
NI
Nisource
40.97
5.79
16.46%
SWX
Southwest Gas
80.63
12.70
18.70%
UGI
UGI
38.10
11.96
45.75%
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.