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Snam SpA (SNMRY)
OTHER OTC:SNMRY
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Snam SpA
(OTC:SNMRY)
71Outperform
Snam SpA (SNMRY) vs. S&P 500 (SPY)
Market Cap
$16.84B
Dividend Yield3.64%
Average Volume (3M)38.82K
Price to Earnings (P/E)14.6
Beta (1Y)0.40
Revenue Growth4.98%
EPS Growth56.63%
CountryUS
Employees3,610
SectorUtilities
Sector Strength83
IndustryRegulated Utilities
Share Statistics
EPS (TTM)0.69
Shares Outstanding1,680,429,000
10 Day Avg. Volume34,918
30 Day Avg. Volume38,818
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)4.74
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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, primarily focused on the natural gas sector. The company operates in various segments, including transportation, storage, and regasification of natural gas. With a strong international presence, Snam is committed to sustainability and innovation, investing in new technologies and infrastructure to support the transition towards a low-carbon energy future.
How the Company Makes MoneySnam SpA generates revenue through a diversified model primarily centered on the transportation, storage, and regasification of natural gas. The company earns income by charging fees for the use of its extensive pipeline network, which transports natural gas across Italy and to neighboring countries. Additionally, Snam operates storage facilities that allow it to earn from providing storage solutions to customers needing to manage supply and demand fluctuations. The regasification segment contributes to revenue by converting liquefied natural gas (LNG) back into a gaseous state for distribution. Snam's strategic partnerships and joint ventures, both domestically and internationally, further bolster its earnings by expanding its operational footprint and enhancing its capabilities in the growing renewable energy sector.
Snam SpA Financial Statement Overview
Summary
Snam SpA shows strong revenue and profit growth with high profitability margins, although it faces challenges with high debt levels and negative cash flow trends. While positioned well within the regulated utilities sector, cash flow issues need addressing to ensure long-term stability.Income Statement
Snam SpA has shown a strong financial performance with significant revenue and profit growth. The gross profit margin stands at 66.96% and net profit margin at 26.48% in 2023, indicating efficient cost management and profitability. The revenue growth rate from 2022 to 2023 was 22.62%, reflecting robust demand and operational strength. EBIT margin is notably high at 61.04%, showcasing effective operational efficiency.85
Very Positive
Balance Sheet
The company maintains a stable balance sheet with a debt-to-equity ratio of 2.18, suggesting a high reliance on debt financing, which is typical for the utility sector. The equity ratio is 22.77%, indicating a moderate level of equity financing. Return on equity is strong at 14.87%, demonstrating effective use of shareholders' funds.70
Positive
Cash Flow
Cash flow performance presents challenges, with negative free cash flow growth and a declining operating cash flow. The operating cash flow to net income ratio is negative, highlighting potential issues in converting earnings to cash. Despite these concerns, the company has managed financing activities to sustain operations.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.25B | 4.29B | 3.50B | 3.29B | 2.75B | 2.63B | Gross Profit |
| 3.02B | 2.87B | 1.87B | 1.78B | 1.70B | 1.68B | EBIT |
| 3.56B | 2.62B | 1.34B | 1.41B | 1.37B | 1.45B | EBITDA |
| 3.00B | 2.42B | 2.07B | 2.22B | 2.13B | 2.18B | Net Income Common Stockholders |
| 1.07B | 1.14B | 671.00M | 1.50B | 1.10B | 1.09B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.38B | 1.38B | 1.76B | 1.34B | 3.04B | 2.85B | Total Assets |
| 33.61B | 33.52B | 32.47B | 27.36B | 26.13B | 24.48B | Total Debt |
| 16.65B | 16.65B | 13.68B | 15.36B | 15.94B | 14.77B | Net Debt |
| 15.27B | 15.27B | 11.92B | 14.02B | 12.89B | 11.92B | Total Liabilities |
| 25.93B | 25.84B | 24.95B | 20.12B | 19.66B | 18.23B | Stockholders Equity |
| 7.63B | 7.63B | 7.47B | 7.20B | 6.47B | 6.25B |
| Cash Flow | Free Cash Flow | ||||
| -515.00M | -1.68B | 2.79B | 94.00M | 431.00M | 532.00M | Operating Cash Flow |
| 1.22B | -135.00M | 4.11B | 1.34B | 1.60B | 1.49B | Investing Cash Flow |
| -1.80B | -2.23B | -1.36B | -1.64B | -1.64B | -1.00B | Financing Cash Flow |
| 1.99B | 1.99B | -2.32B | -1.41B | 233.00M | 494.00M |
Snam SpA Technical Analysis
Positive
10.02
Price Trends
9.37
Positive
9.21
Positive
9.32
Positive
Market Momentum
0.20
Negative
63.20
Neutral
88.42
Negative
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 10.02 is above the 20-day moving average (MA) of 9.77, above the 50-day MA of 9.37, and above the 200-day MA of 9.32, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 88.42 is Negative, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $64.10B | 14.72 | 13.40% | 6.88% | 5.20% | 18.35% | |
73 Outperform | $135.22B | 26.54 | 8.63% | 6.11% | 24.95% | -17.19% | |
71 Outperform | $61.15B | 23.52 | 8.54% | 4.18% | -0.55% | 10.02% | |
71 Outperform | $71.21B | 32.14 | 17.92% | 3.25% | 8.06% | -30.11% | |
71 Outperform | $16.84B | 14.62 | 13.96% | 3.64% | 4.98% | 56.63% | |
65 Neutral | $12.07B | 14.73 | 6.75% | 4.34% | 7.37% | 3.49% | |
63 Neutral | $61.65B | 23.54 | 5.18% | 5.46% | -3.25% | -76.46% |
* Utilities Sector Average
Performance Comparison
SNMRY
Snam SpA
10.02
0.94
10.35%
ET
Energy Transfer
18.94
4.40
30.26%
KMI
Kinder Morgan
27.85
10.72
62.58%
NGG
National Grid Transco
63.81
3.12
5.14%
WMB
Williams Co
59.32
22.92
62.97%
TSE:ENB
Enbridge
62.67
17.05
37.39%
Snam SpA Earnings Call Summary
Earnings Call Date: Mar 19, 2025 | % Change Since: -0.20% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic progress, including increased EBITDA, net income, and investments, along with positive regulatory developments and LNG sector strengthening. However, concerns were noted regarding declining gas demand, increased net debt, and challenges with international associates. Despite these issues, the overall sentiment leans towards positive due to the significant upgrades in full-year guidance and strategic achievements.Highlights
Strong Financial Performance
Adjusted EBITDA increased by 18% year-on-year to EUR 703 million. Adjusted net income rose by 11% year-on-year to EUR 335 million. Investments reached EUR 462 million, up 48% versus Q1 2023.
Positive Regulatory and Market Developments
An uplift in weighted average cost of capital resulted in an 80 bps increase for transport and 60 bps for storage. The EU Hydrogen Bank awarded over EUR 700 million to several renewable hydrogen projects.
Strengthened LNG Position
Snam increased its stake in Adriatic LNG regas terminal from 7.3% to 30%, expecting to close the transaction by year-end. Strong LNG sector platform up to 20 bcm.
Upgraded Full Year Guidance
CapEx guidance increased to EUR 3 billion. EBITDA expected to exceed EUR 2.75 billion, up from the previous EUR 2.7 billion guidance. Adjusted net income guidance raised to approximately EUR 1.23 billion from EUR 1.18 billion.
Solid Gas Infrastructure Progress
Storage levels reached 60% at the end of winter, above historical levels. 100% of storage capacity for 2024/2025 was allocated.
Lowlights
Decline in Gas Demand
Gas demand decreased by 2.6% in Q1 2024 compared to the previous year, with the thermoelectric sector down 4.8% year-on-year.
Increased Net Debt and Costs
Net debt stood at EUR 15.8 billion. Net cost of debt increased from 1.5% to 2.4% year-on-year. Labor costs rose due to health insurance and inflation.
Challenges with International Associates
International associates' contribution to group net income decreased by 4% compared to last year.
Company Guidance
During the Snam Q1 2024 earnings call, the company provided several key metrics and guidance updates. The adjusted EBITDA was reported at EUR 703 million, reflecting an 18% year-on-year increase, attributed to factors such as the weighted average cost of capital uplift and the Ross effect. Additionally, the adjusted net income rose by 11% to EUR 335 million. Investments climbed to EUR 462 million, marking a 48% increase compared to Q1 2023. The net debt stood at EUR 15.8 billion, with an average net cost of debt of 2.4%. Gas demand saw a decline of 2.6%, while gas prices were 50% lower than the previous year. Moreover, the company revised its full-year guidance, expecting EBITDA to exceed EUR 2.75 billion and adjusted net income to reach approximately EUR 1.23 billion. The CapEx forecast was adjusted to EUR 3 billion, driven by infrastructural projects such as the Ravenna breakwater construction. These updates indicate a strong start to the year for Snam, with an optimistic outlook for the remainder of 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.