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Snam SpA SRG

Morningstar Rating
€4.31 −0.01 (0.14%)
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Company Report

European Utilities Edged Up in Q2 on Soaring Power Prices, High Interest Rates Still a Drag

Utilities have reversed part of their first quarter’s fall, thanks to a strong rebound in power prices. Moreover, the deep undervaluation of renewables developers has driven takeovers by big investment firms at very high multiples. Neoen’s main shareholders accepted an offer at 18 times the EBITDA. The sector is still significantly lagging the market in 2024 because of high interest rates. Should they fall, it would boost the sector.

Price vs Fair Value

SRG is trading at a 516% premium.
Price
€4.32
Fair Value
€9.70
Uncertainty
Low
1-Star Price
€4.77
5-Star Price
€3.95
Economic Moat
Qxrq
Capital Allocation
Gmhxzvy

Bulls Say, Bears Say

Bulls

Snam has high earnings and dividend visibility as its main businesses earn regulated returns.

Bears

Investments in the energy transition do not strengthen the company’s moat, especially in biomethane and carbon capture and storage.

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News

Trading Information

Previous Close Price
€4.32
Day Range
€4.294.33
52-Week Range
€4.185.10
Bid/Ask
€4.31 / €4.32
Market Cap
€14.46 Bil
Volume/Avg
1.3 Mil / 8.5 Mil

Key Statistics

Price/Earnings (Normalized)
12.10
Price/Sales
3.48
Dividend Yield (Trailing)
6.43%
Dividend Yield (Forward)
7.83%
Total Yield
6.45%

Company Profile

Snam operates a network of about 38,000 kilometers of natural gas pipelines in Italy and abroad. It also holds 17.1% of European gas storage capacity and 13.5 billion cubic meters of LNG regasification capacity. Snam is investing in hydrogen, biofuels, carbon capture and storage, and energy efficiencies to prepare for the energy transition. Snam became independent from Eni in 2012 after the latter sold its stake to Cassa Depositi e Prestiti, a financial institution controlled by the Ministry of Economy and Finance.
Sector
Utilities
Industry
Utilities - Regulated Gas
Stock Style Box
Large Value
Total Number of Employees
3,797

Competitors

Valuation

Metric
SRG
ED
NGG
Price/Earnings (Normalized)
12.1018.6110.64
Price/Book Value
1.821.451.21
Price/Sales
3.482.171.82
Price/Cash Flow
6.687.346.58
Price/Earnings
SRG
ED
NGG

Financial Strength

Metric
SRG
ED
NGG
Quick Ratio
0.770.64
Current Ratio
1.010.91
Interest Coverage
6.823.942.63
Quick Ratio
SRG
ED
NGG

Profitability

Metric
SRG
ED
NGG
Return on Assets (Normalized)
2.78%3.03%
Return on Equity (Normalized)
17.21%8.52%9.72%
Return on Invested Capital (Normalized)
8.54%5.87%5.36%
Return on Assets
SRG
ED
NGG
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Regulated Gas Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Naturgy Energy Group SA
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Naturgy Energy Group SA ADR
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Atmos Energy Corp
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GAIL (India) Ltd DR
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Snam SpA ADR
SNMRY
Fqrjpqk$15.7 Bil
Snam SpA
SNMRF
Lxrzcl$15.6 Bil
Hong Kong and China Gas Co Ltd ADR
HOKCY
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NiSource Inc
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New Fortress Energy Inc Class A
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New Jersey Resources Corp
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