Snam SpA (SNMRY) AI Stock Analysis

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Snam SpA

(OTC:SNMRY)

Rating:77Outperform

Price Target:

$12.50

▲(3.82%Upside)

Snam SpA's overall stock score is driven by a robust earnings call performance and strong technical indicators. The company's financial stability, despite challenges in revenue growth and high debt levels, contributes positively, as does its reasonable valuation and attractive dividend yield. The strategic acquisitions and regulatory updates provide confidence in future prospects, though potential pressure on gas prices remains a concern.

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

Market Cap

$20.37B

Dividend Yield3.95%

Average Volume (3M)729.00

Price to Earnings (P/E)14.9

Beta (1Y)0.15

Revenue Growth-16.36%

EPS Growth10.97%

CountryUS

Employees3,971

SectorUtilities

Sector Strength79

IndustryRegulated Gas

Share Statistics

EPS (TTM)N/A

Shares Outstanding1,680,429,000

10 Day Avg. Volume0

30 Day Avg. Volume729

Financial Highlights & Ratios

PEG Ratio-0.40

Price to Book (P/B)2.02

Price to Sales (P/S)0.00

P/FCF Ratio5.41

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 SpA (SNMRY) is a leading energy infrastructure company based in Italy. It operates primarily in the natural gas sector, focusing on the transportation, storage, and regasification of natural gas. Snam manages a vast network of pipelines and facilities that are critical for the distribution and supply of natural gas across Italy and in other parts of Europe. The company is committed to facilitating the transition to sustainable energy sources and is actively involved in developing new technologies and solutions to enhance energy efficiency and reduce carbon emissions.

How the Company Makes MoneySnam SpA generates revenue primarily through its regulated businesses, including the transportation and dispatching of natural gas via its extensive pipeline network. It earns money by charging tariffs for the use of its infrastructure, which are set by regulatory authorities and provide a stable and predictable income stream. Additionally, Snam derives income from its storage services, earning fees from customers who store natural gas in its facilities. The company also engages in regasification activities, converting liquefied natural gas (LNG) back to gas for distribution, which adds another revenue stream. Furthermore, Snam has strategic partnerships and joint ventures that enhance its capabilities and market reach, contributing to its overall earnings. The company's focus on innovation and sustainability initiatives, such as investing in hydrogen and renewable energy projects, is also positioning it to capture new revenue opportunities in the evolving energy landscape.

Snam SpA Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 4.60%|

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 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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
1.68B	2.62B	1.34B	1.41B	1.37B
	EBITDA
3.10B	2.42B	2.07B	2.22B	2.13B
	Net Income Common Stockholders
1.26B	1.14B	671.00M	1.50B	1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.81B	1.38B	1.76B	1.34B	3.04B
	Total Assets
35.79B	33.52B	32.47B	27.36B	26.13B
	Total Debt
18.36B	16.65B	13.68B	15.36B	15.94B
	Net Debt
16.55B	15.27B	11.92B	14.02B	12.89B
	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 Price12.04

Price Trends

50DMA

11.53

Positive

100DMA

10.64

Positive

200DMA

9.98

Positive

Market Momentum

MACD

0.17

Positive

RSI

60.28

Neutral

STOCH

78.09

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 12.04 is above the 20-day moving average (MA) of 11.99, above the 50-day MA of 11.53, and above the 200-day MA of 9.98, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.09 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNMRY	77 Outperform	$20.37B	14.91	16.36%	3.95%	-16.36%	10.97%
ATO	77 Outperform	$24.21B	21.27	9.18%	2.27%	10.60%	8.55%
UGI	76 Outperform	$7.79B	14.96	10.84%	4.13%	-4.30%	―
NI	74 Outperform	$18.60B	21.29	10.34%	2.83%	13.08%	17.47%
NJR	71 Outperform	$4.45B	10.74	17.83%	4.06%	20.30%	63.69%
SWX	68 Neutral	$5.32B	23.71	6.49%	3.35%	-10.78%	16.27%
Sector *	64 Neutral	$8.53B	10.30	4.25%	5.88%	4.06%	-12.76%

* Utilities Sector Average

Performance Comparison

SNMRY

Snam SpA

12.04

3.55

41.81%

ATO

Atmos Energy

153.56

38.27

33.19%

NJR

New Jersey Resources

44.29

3.23

7.87%

Nisource

39.52

11.51

41.09%

SWX

Southwest Gas

73.86

1.59

2.20%

UGI

36.32

14.39

65.62%

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.