Snam SpA (SNMRY) AI Stock Analysis

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Snam SpA

(OTC:SNMRY)

Rating:73Outperform

Price Target:

$13.00

▲(9.34% Upside)

Snam SpA's overall stock score of 73 reflects its solid financial performance, reasonable valuation metrics, and positive earnings call highlights, particularly in strategic project execution and sustainability initiatives. However, technical analysis indicates current bearish momentum, and financial risks due to high debt levels and challenges in revenue growth slightly dampen the outlook.

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

Market Cap

$20.17B

Dividend Yield3.95%

Average Volume (3M)5.97K

Price to Earnings (P/E)13.1

Beta (1Y)0.05

Revenue Growth-7.51%

EPS Growth31.31%

CountryUS

Employees3,971

SectorUtilities

Sector Strength63

IndustryRegulated Gas

Share Statistics

EPS (TTM)0.50

Shares Outstanding1,680,429,000

10 Day Avg. Volume6,481

30 Day Avg. Volume5,972

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 Cap2.09

Enterprise Value/Revenue23.47

Enterprise Value/Gross Profit22.22

Enterprise Value/Ebitda15.97

Forecast

1Y Price Target

$13.00

Price Target Upside9.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Snam SpA Business Overview & Revenue Model

Company DescriptionSnam SpA (SNMRY) is an Italian energy infrastructure company primarily engaged in the transportation, storage, and regasification of natural gas. As one of Europe’s leading gas operators, Snam plays a crucial role in the energy supply chain, providing essential services that support the transition to sustainable energy. The company operates a vast network of pipelines, storage facilities, and LNG terminals, facilitating the efficient movement and distribution of natural gas across Italy and into other European markets.

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

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.

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

Technical Analysis Sentiment

Negative

Last Price11.89

Price Trends

50DMA

11.93

Negative

100DMA

11.64

Positive

200DMA

10.41

Positive

Market Momentum

MACD

0.05

Positive

RSI

43.68

Neutral

STOCH

15.27

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 11.89 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 11.93, and above the 200-day MA of 10.41, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 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
ATO	79 Outperform	$26.67B	22.85	9.05%	2.10%	12.90%	7.70%
NJR	77 Outperform	$4.75B	11.54	18.03%	3.84%	21.88%	71.35%
SNMRY	73 Outperform	$20.17B	13.11	17.05%	3.95%	-7.51%	31.31%
UGI	72 Outperform	$7.44B	18.26	8.75%	4.41%	-0.52%	-39.42%
NI	70 Neutral	$19.90B	22.37	10.56%	2.64%	16.98%	12.45%
Sector *	66 Neutral	$17.27B	17.85	5.54%	3.66%	6.63%	11.55%
SWX	65 Neutral	$5.75B	29.37	5.41%	3.14%	-10.07%	5.98%

* Utilities Sector Average

Performance Comparison

SNMRY

Snam SpA

11.89

2.14

21.95%

ATO

Atmos Energy

165.22

36.71

28.57%

NJR

New Jersey Resources

46.83

2.18

4.88%

Nisource

41.80

9.35

28.81%

SWX

Southwest Gas

79.33

11.51

16.97%

UGI

33.98

10.67

45.77%

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.Date of analysis: Aug 01, 2025