Terna TRN.MI
Terna operates Italy's electricity transmission grid, with regulated revenues and state concessions. Terna shows solid financial health (7.05) with an exceptional operating margin of 45.15%, but its valuation (4.99) is weighed down by negative free cash flow conversion. The dividend (7.06) is attractive and revenue growth (12.30%) is positive, although earnings growth is flat.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Terna operates Italy's electricity transmission grid, with regulated revenues and state concessions. Terna shows solid financial health (7.05) with an exceptional operating margin of 45.15%, but its valuation (4.99) is weighed down by negative free cash flow conversion. The dividend (7.06) is attractive and revenue growth (12.30%) is positive, although earnings growth is flat.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.0 |
| Quality / Moat | 5.1 |
| Valuation | 4.7 |
| Growth | 6.1 |
| Dividend | 7.1 |
| Momentum | 6.9 |
| Risk & Context | 5.2 |
OVERALL SCORE: 6.0/10
Context and risks
Elevated governance risk in Italy. Although Terna operates under a stable regulatory framework, the country's institutional quality and the risk of political interference in tariff setting justify a penalty on the base risk.
News considered in the analysis
- 3 European Utility Stocks To Watch As Grid Spending And Regulation Collide — El titular destaca la oportunidad en utilities europeas por el gasto en redes, un tema central para Terna, pero es un análisis genérico sin datos específicos de la empresa.
- Italy has performed better this decade than pre-2020. How long will this last? — Análisis macroeconómico sobre Italia sin información específica sobre Terna o su negocio regulado.
Verdict: Hold. Terna is a regulated utility with solid fundamentals, but the valuation does not offer a sufficient margin of safety and the governance risk in Italy is a factor to watch.
Main risk: The main risk is the high net debt (ND/EBITDA of 4.48) and weak free cash flow conversion, which could limit investment capacity and dividend growth if the regulatory environment becomes less favorable.
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