Snam SpA (SNMRY) AI Stock Analysis

• Market Cap: $20.75B
• Dividend Yield: 3.8%
• Average Volume (3M): 3.63K
• Price to Earnings (P/E): 13.7
• Beta (1Y): -0.02
• Revenue Growth: -7.51%
• EPS Growth: 31.31%
• Country: US
• Employees: 3,971
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.50
• Shares Outstanding: 1,680,429,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,634
• PEG Ratio: 0.96
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 4.03
• P/FCF Ratio: -14.27
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 23.15
• Enterprise Value/Gross Profit: 22.04
• Enterprise Value/Ebitda: 17.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $13.00 ▲(5.35% Upside)

Snam SpA's overall stock score reflects solid financial performance and attractive valuation, supported by a positive earnings call sentiment. The main strengths include operational profitability and a strong dividend yield. However, challenges such as high debt levels, negative free cash flow, and neutral technical indicators temper the score.

Snam SpA Business Overview & Revenue Model

Company Description

Snam 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 Money

Snam 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 Financial Statement Overview

Summary

Snam SpA demonstrates solid operational profitability with strong gross profit margins and stable EBIT and EBITDA margins. However, challenges include declining revenue growth and negative free cash flow due to high capital expenditures. The high debt-to-equity ratio poses a potential financial risk, although the company maintains a reasonable return on equity.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	3.55B	4.29B	3.52B	3.29B	2.77B
Gross Profit	1.91B	3.12B	2.87B	1.87B	1.78B	1.70B
EBITDA	2.34B	3.10B	2.42B	2.25B	2.25B	2.17B
Net Income	674.00M	1.26B	1.14B	671.00M	1.50B	1.10B
Balance Sheet
Total Assets	35.95B	35.79B	33.52B	32.47B	27.36B	26.13B
Cash, Cash Equivalents and Short-Term Investments	2.42B	1.81B	1.38B	1.76B	1.34B	3.04B
Total Debt	19.99B	18.36B	16.65B	13.68B	15.36B	15.94B
Total Liabilities	26.77B	26.82B	25.84B	24.95B	20.12B	19.66B
Stockholders Equity	9.14B	8.93B	7.63B	7.47B	7.20B	6.47B
Cash Flow
Free Cash Flow	-501.00M	-1.00B	-1.68B	2.79B	94.00M	431.00M
Operating Cash Flow	1.68B	1.81B	-135.00M	4.11B	1.34B	1.60B
Investing Cash Flow	-3.13B	-2.68B	-2.23B	-1.36B	-1.64B	-1.64B
Financing Cash Flow	580.00M	1.29B	1.99B	-2.32B	-1.41B	233.00M

Snam SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 12.34 is above the 20-day moving average (MA) of 12.24, above the 50-day MA of 12.08, and above the 200-day MA of 11.12, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNMRY.

Snam SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATO	79 Outperform	$27.72B	23.85	9.05%	2.03%	12.90%	7.70%
NJR	75 Outperform	$4.43B	10.78	18.03%	4.12%	21.88%	71.35%
SNMRY	71 Outperform	$20.75B	13.67	17.05%	3.80%	-7.51%	31.31%
SWX	67 Neutral	$5.72B	29.60	5.41%	3.12%	-10.07%	5.98%
NI	67 Neutral	$20.09B	22.24	10.23%	2.66%	19.62%	12.87%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UGI	62 Neutral	$7.20B	17.65	8.75%	4.49%	-0.52%	-39.42%

Snam SpA Corporate Events

Snam Spa Earnings Call: Strong Growth Amid Challenges

Snam Spa’s recent earnings call conveyed a generally positive sentiment, underscored by robust financial performance and advancements in strategic projects. The company reported notable increases in LNG imports and emphasized its commitment to sustainability initiatives. Despite facing challenges such as rising operating costs and regulatory changes, the overall outlook remains optimistic, with the positives outweighing the negatives.

Snam Spa Reports Strong H1 2025 Financial Results

Snam Spa is a leading energy infrastructure company in Italy, primarily focusing on natural gas transportation, storage, and regasification, with a strong emphasis on sustainability and innovation in the energy sector.