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Terna S.p.A. Unsponsored ADR (TEZNY)
:TEZNY
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Terna
(OTC:TEZNY)
74Outperform
Terna (TEZNY) vs. S&P 500 (SPY)
Market Cap
$18.09B
Dividend Yield2.63%
Average Volume (3M)1.00K
Price to Earnings (P/E)16.4
Beta (1Y)0.42
Revenue Growth15.00%
EPS Growth21.10%
CountryUS
Employees6,196
SectorUtilities
Sector Strength82
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.65
Shares Outstanding669,997,300
10 Day Avg. Volume0
30 Day Avg. Volume1,004
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)N/A
Price to Sales (P/S)5.31
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
Terna Business Overview & Revenue Model
Company DescriptionTerna (TEZNY) is a leading electricity transmission system operator based in Italy. The company operates in the energy sector, specializing in the transmission and dispatching of electricity across high-voltage power lines. Terna plays a critical role in ensuring the stability and efficiency of Italy's electricity grid, facilitating the supply of power to meet the country's demand. The core services include the operation, maintenance, and development of electricity transmission networks, as well as the management of electricity flows to guarantee continuous service.
How the Company Makes MoneyTerna makes money primarily through the regulated activities of transmitting electricity across Italy. The company's revenue model is based on tariffs set by the Italian Regulatory Authority for Energy, Networks, and Environment (ARERA), which are designed to cover the costs of operating and maintaining the transmission network, as well as providing a return on invested capital. Revenue streams include fees for the use of the transmission infrastructure by electricity producers and distributors. Additionally, Terna may engage in non-regulated activities such as consulting services, leveraging its expertise in grid management and renewable energy integration, though the majority of its income is derived from the regulated transmission services. Strategic partnerships and investments in grid modernization projects, both domestically and internationally, also contribute to Terna's earnings, enabling the company to expand its operational capabilities and enhance the reliability of the electricity supply.
Terna Financial Statement Overview
Summary
Terna demonstrates strong profitability with robust revenue growth and operational efficiency, as evidenced by high EBIT and EBITDA margins and a healthy net profit margin. Despite significant leverage, the company maintains a solid return on equity. However, negative free cash flow poses a concern, indicating a need for careful financial management.Income Statement
Terna exhibits strong profitability with a consistent gross profit margin around 81.7% in 2023. The net profit margin of 28.1% indicates healthy bottom-line performance. Revenue growth from 2022 to 2023 is approximately 8.8%, reflecting positive growth momentum. The EBIT and EBITDA margins are robust at 43.2% and 70.7% respectively, suggesting efficient cost management and operational efficiency.82
Very Positive
Balance Sheet
The debt-to-equity ratio stands at 2.26, indicating a significant reliance on debt financing, which is typical for the utilities sector but poses potential risks. However, the return on equity shows improvement to 16.6% in 2023, highlighting efficient use of equity capital. The equity ratio is 22.8%, reflecting a moderate level of financial stability.75
Positive
Cash Flow
Operating cash flow to net income ratio is 1.22, demonstrating strong cash generation relative to profit. However, free cash flow has turned negative in 2023, marking a concern for cash reserves and future investments. The free cash flow to net income ratio is negative, indicating that capital expenditures are currently outpacing cash inflows.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.17B | 3.15B | 2.90B | 2.53B | 2.38B | 2.29B | Gross Profit |
| 2.86B | 2.58B | 1.38B | 1.21B | 1.15B | 1.16B | EBIT |
| 1.87B | 1.36B | 1.27B | 1.13B | 1.07B | 1.10B | EBITDA |
| 2.36B | 2.23B | 1.99B | 1.83B | 1.80B | 1.73B | Net Income Common Stockholders |
| 1.25B | 885.40M | 857.00M | 789.40M | 785.50M | 757.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.75B | 1.75B | 2.41B | 2.55B | 3.31B | 1.58B | Total Assets |
| 23.47B | 23.45B | 22.83B | 22.39B | 20.70B | 18.09B | Total Debt |
| 12.98B | 12.07B | 11.76B | 12.42B | 12.25B | 9.63B | Net Debt |
| 11.61B | 10.69B | 9.60B | 10.86B | 9.56B | 8.57B | Total Liabilities |
| 18.05B | 17.10B | 17.58B | 17.60B | 16.28B | 13.77B | Stockholders Equity |
| 5.34B | 5.34B | 5.15B | 4.68B | 4.37B | 4.19B |
| Cash Flow | Free Cash Flow | ||||
| -1.17B | -1.18B | 619.00M | -642.70M | -346.80M | 93.20M | Operating Cash Flow |
| 824.20M | 1.08B | 2.32B | 832.30M | 941.40M | 1.30B | Investing Cash Flow |
| -710.50M | -2.33B | -1.86B | -879.60M | -1.39B | -1.17B | Financing Cash Flow |
| 78.80M | 464.30M | 92.50M | -1.04B | 2.08B | -392.70M |
Terna Technical Analysis
Positive
27.00
Price Trends
25.11
Positive
24.76
Positive
24.97
Positive
Market Momentum
0.43
Negative
72.56
Negative
100.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEZNY, the sentiment is Positive. The current price of 27 is above the 20-day moving average (MA) of 25.83, above the 50-day MA of 25.11, and above the 200-day MA of 24.97, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 100.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEZNY.
Terna 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 | $92.78B | 21.01 | 9.10% | 3.48% | 4.46% | 54.09% | |
77 Outperform | $99.95B | 22.82 | 13.61% | 3.16% | 5.83% | 10.23% | |
74 Outperform | $18.09B | 16.39 | 19.19% | 2.63% | 15.00% | 21.10% | |
74 Outperform | $38.40B | 20.76 | 8.44% | 3.07% | 4.23% | -27.02% | |
73 Outperform | $57.12B | 19.15 | 11.37% | 3.38% | 2.76% | 31.53% | |
72 Outperform | $144.92B | 20.89 | 14.24% | 3.00% | 26.91% | -6.43% | |
65 Neutral | $12.09B | 16.10 | 6.13% | 4.37% | 5.50% | -7.50% |
* Utilities Sector Average
Performance Comparison
TEZNY
Terna
27.00
3.04
12.69%
AEP
American Electric Power
106.96
25.54
31.37%
ED
Consolidated Edison
108.77
21.48
24.61%
DUK
Duke Energy
119.41
26.92
29.11%
NEE
NextEra Energy
70.45
8.81
14.29%
SO
Southern Co
91.13
22.41
32.61%
Terna Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: 3.57% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
Terna's earnings call highlights a robust commitment to the energy transition with record investments, strong financial performance, and leadership in sustainability. However, the company faces challenges in integrating renewables and mitigating climate change impacts while managing increased debt.Highlights
Record Investment in Energy Transition
Terna announced over EUR16.5 billion of investment for the 2024-2028 Industrial Plan, an increase of 65% on the previous plan, with a focus on digitalization and innovation.
Authorization for Major Projects
In 2024, Terna obtained authorization for 25 projects worth over EUR2.3 billion, increasing the coverage of authorized projects to about 90%, up from 79% in the previous plan.
Sustainability Leadership
Terna was listed in the Dow Jones Sustainability Index for the 16th consecutive year, reinforcing its global standing in sustainability.
Strong Financial Performance
Group revenues and EBITDA were up by 15% and 18% respectively in 2024, with group net income at EUR1,062 million, a 20% increase versus 2023.
Increased Dividend Policy
Proposed dividend for 2024 is EUR39.62 per share, up 17% year-on-year, with a new floor established for future dividends.
Lowlights
Challenges in Renewable Integration
Despite progress, Italy needs an additional 57 gigawatts of wind and solar capacity by 2030 to meet national targets, requiring significant infrastructure development.
Climate Change Impact
The electricity system faces unprecedented challenges due to a significant increase in extreme weather events, raising the vulnerability of critical infrastructures.
Debt Increase
Net debt at the end of December 2024 stood at EUR11.2 billion, an increase due to CapEx acceleration and the EUR850 million hybrid issuance.
Company Guidance
During the call, Terna's 2024-2028 Industrial Plan Update outlined several ambitious financial and operational targets. The company plans to invest over EUR 16.5 billion, marking a 65% increase from the previous plan, with a focus on digitalization and innovation. Terna achieved authorization for 25 projects in 2024, valued at over EUR 2.3 billion, and aims to increase authorized project coverage to about 90% of total planned CapEx. Financially, Terna reported a 15% increase in group revenues and an 18% rise in EBITDA for 2024, with net income reaching EUR 1,062 million, a 20% increase from 2023. The company also plans to invest EUR 70.7 billion during the 2024-2028 period, with regulated activities receiving a record EUR 16.6 billion. These investments are expected to grow the regulatory asset base (RAB) from EUR 22.5 billion in 2024 to EUR 31.8 billion by 2028, representing a 9% CAGR. Terna's commitment to sustainability was highlighted by its inclusion in the Dow Jones Sustainability Index for the 16th consecutive year, and the company aims for a 46% reduction in Scope 1 and 2 emissions by 2030.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.