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Snam Spa (SNMRY)
:SNMRY
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Snam SpA
(OTC:SNMRY)
Rating:77Outperform
Price Target:
$13.50
▲(14.31%Upside)
Snam SpA (SNMRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.74B
Dividend Yield7%
Average Volume (3M)11.94K
Price to Earnings (P/E)14.5
Beta (1Y)0.07
Revenue Growth-16.36%
EPS Growth10.97%
CountryUS
Employees3,971
SectorUtilities
Sector Strength76
IndustryRegulated Gas
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,680,429,000
10 Day Avg. Volume0
30 Day Avg. Volume11,941
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.89
Price to Sales (P/S)0.00
P/FCF Ratio-31.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 SpA generates revenue primarily through its regulated activities in the natural gas transportation sector. The company earns money by charging fees for the transportation of natural gas through its extensive pipeline network. These fees are typically regulated by government authorities, providing Snam with stable and predictable income streams. Additionally, Snam operates natural gas storage facilities, which offer storage services to balance supply and demand, further contributing to its revenue. The company also has partnerships and joint ventures that facilitate the development of new infrastructure projects and the expansion of its footprint in the European energy market, enhancing its revenue potential.
Snam SpA Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 4.61%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented robust financial performance with strong EBITDA and net income growth, strategic acquisitions, and regulatory updates providing future visibility. However, there are concerns about decreasing investments and potential pressure on gas prices due to geopolitical factors.Q1-2025 Updates
Positive Updates
Strong Financial Results
Adjusted EBITDA of EUR761 million, up 8.3% year-on-year, and adjusted net income at EUR406 million, up 21.2% year-on-year.
Strategic M&A Activities
Acquisition of Edison Stoccaggio completed, and sale of stake in ADNOC gas pipelines for EUR234 million, resulting in a capital gain of EUR120 million net of taxes.
Regulatory Updates
Weighted average cost of capital formula updated, providing future visibility. Resolution 130 changed RAB indexation, creating a one-off EUR52 million effect related to 2024 recovery.
Expansion in European Market
Acquisition of 24.99% stake in Vier Gas Holding, marking entry into German energy infrastructure space and strengthening presence in Europe.
Sustainability Initiatives
28% of CapEx aligns with EU taxonomy, and 52% with SDGs. New sustainable finance framework launched with ambitious carbon neutrality and net zero goals.
Negative Updates
Decreased Investments
Investments at EUR361 million, down 22% versus first quarter 2024, following completion of projects like Ravenna LNG terminal.
Pressure on Gas Prices
Potential Russian gas phase-out could put pressure on gas prices, coupled with oil price uncertainties.
Company Guidance
During Snam's Q1 2025 earnings call, the company reported a robust financial performance, despite challenging market conditions. Key metrics included an adjusted EBITDA of EUR 761 million, marking an 8.3% year-on-year increase, and an adjusted net income of EUR 406 million, up by 21.2% year-on-year. Investments amounted to EUR 361 million, a 22% decrease compared to Q1 2024, primarily due to the completion of the Ravenna LNG terminal. Net debt stood at EUR 16.8 billion, with a stable average cost of debt at 2.5%. The company highlighted significant M&A activities, including the acquisition of Edison Stoccaggio and a stake in Vier Gas Holding, and also noted a EUR 52 million one-off revenue effect from regulatory adjustments. Snam's strategic initiatives in gas infrastructure and energy transition were emphasized, alongside its commitment to sustainability, with 28% of CapEx aligned with EU taxonomy and a strong ESG investor base. The presentation concluded with the reaffirmation of financial guidance and ongoing regulatory developments.Snam SpA Financial Statement Overview
Summary
Snam SpA shows strong operational profitability with stable EBIT and EBITDA margins, but its high debt-to-equity ratio poses potential risks. Revenue growth is challenged due to decreasing total revenue, and negative free cash flow highlights financial strain despite improved operating cash flow.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
Positive
11.81
Price Trends
11.66
Positive
10.94
Positive
9.99
Positive
Market Momentum
0.02
Positive
52.93
Neutral
50.27
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 11.81 is above the 20-day moving average (MA) of 11.79, above the 50-day MA of 11.66, and above the 200-day MA of 9.99, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.27 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.74B | 14.54 | 16.36% | 7.00% | -16.36% | 10.97% | |
76 Outperform | $7.79B | 14.97 | 10.84% | 4.13% | -4.30% | ― | |
76 Outperform | $4.59B | 11.08 | 17.83% | 4.85% | 20.30% | 63.69% | |
72 Outperform | $24.88B | 21.87 | 9.18% | 2.18% | 10.60% | 8.55% | |
71 Outperform | $19.25B | 22.04 | 10.34% | 2.67% | 13.08% | 17.47% | |
68 Neutral | $5.61B | 25.00 | 6.49% | 3.18% | -10.78% | 16.27% | |
63 Neutral | HK$30.53B | 8.63 | 5.37% | 6.36% | -3.09% | 4.51% |
* Utilities Sector Average
Performance Comparison
SNMRY
Snam SpA
11.81
2.55
27.54%
ATO
Atmos Energy
156.66
36.00
29.84%
NJR
New Jersey Resources
45.73
1.41
3.18%
NI
Nisource
40.90
11.03
36.93%
SWX
Southwest Gas
77.98
6.44
9.00%
UGI
UGI
36.34
13.31
57.79%
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.