Snam

Utilities & power · ItalyRank 349 of 829Prices 3 Nov 2026Model 1.4

15070100

A good business with a real question mark: the price, a crack, or both.

Biggest deductions

Quality of growth−3
FCF yield−3
Debt−3

Strengths

Regulated monopoly and LNG+2
Credit rating+1

How the score is built

From 100 to 65, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

65Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 6.23 EUR
Median analyst target: 6.50 EUR
Upside to median: +4.4%
Analysts: 20
Target range: 5.40 – 7.30 EUR
52-week change: +16%
P/E (trailing): 18.8
Forward P/E: 14.3
PEG: 3.59

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 3 findings−7 of −30

ROIC
ROIC 4.9% vs a WACC of 4.4% – only just above the cost of capital – and ROCE has been flat at 6.7–7.6% since 2021; ROE has fallen from 15.1% (2023–2024) to 12.4% TTM.
stockanalysis.com
−2
Quality of growth
Adjusted net result fell 2% in H1 2026 (+3% adjusted for one-offs), and reported EPS has fallen from €0.37 (2024–2025) to €0.33 TTM as depreciation and interest on new assets weigh; analysts expect only about 3% annual EPS growth.
investing.com
−3
Future segment
The core business is gas transport and storage; Italian gas demand rose only 0.4% in H1, management assumes no growth, and there is no regulatory mechanism compensating for stranded assets from electrification.
investing.com
−2

Price

Today's multiples against the company's own history and its peers. · 2 findings−5 of −35

Multiples vs own history and peers
Forward P/E 12.9 vs 11.5–15.3 in 2021–2025, EV/EBITDA 10.9 vs 11.2–13.9 (below its own range) and P/B 2.01 vs 1.60–2.39. Reasonably priced vs its own history, but with EPS growth of only about 3%, forward P/E is in line with Enel (11.8) and Engie (11.2), which grow more.
stockanalysis.com
−2
FCF yield
FCF of €1.03bn TTM (5.5%) is boosted by working capital; FCF was −€1.7bn in 2023 and −€0.7bn in 2024, and analysts expect −€0.16bn in 2026. EV/FCF 37.
stockanalysis.com
−3

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−9 of −35

Debt
Net debt €18.8bn (June 2026) vs 17.5bn at year-end and 11.9bn in 2022; net debt/EBITDA 6.2x, debt/EBITDA 7.1x, interest cover 4.1x and current ratio 0.76. The share of floating-rate debt has increased to 35%.
stockanalysis.com
−3
Regulation (7th period)
The consultation on the 7th regulatory period (May 2026) proposes higher gearing in the WACC formula, which management has objected to; the return on LNG is capped at 64%, and the decision comes only in Q1 2027.
investing.com
−3
Chinese co-owner
In November 2025 Snam had to abandon the purchase of 24.99% of Open Grid Europe (€920m) because the German authorities did not approve it due to Chinese State Grid's indirect ownership in Snam; this limits European growth via acquisitions.
pgjonline.com
−2
Special tax (IRAP)
The Italian energy decree increases IRAP tax by about EUR 40m in 2026, which is included in guidance.
investing.com
−1

Plus

Only documented strengths. · 2 findings+3 of +15

Regulated monopoly and LNG
Adjusted EBITDA rose 9% underlying to €1.57bn in H1; LNG now makes up 32% of gas supply to Italy, and guidance (EBITDA about €3.1bn) is confirmed, while net debt guidance has improved to €18.9bn.
investing.com
+2
Credit rating
Moody's has upgraded Snam to Baa1 (stable), S&P has improved the outlook to stable, and Fitch has affirmed BBB+; average cost of debt only 2.6%.
investing.com
+1

Caveats

What the score does not capture, or where the data is weak.

Stockanalysis' EPS (€0.33 TTM, trailing P/E 16.9) is reported; the company's adjusted net profit is guided at over €1.45bn for 2026 (about €0.43 per share), and forward P/E is based on adjusted figures. FCF TTM of €1.03bn is lifted by about €600m of working capital and was negative in 2023–2024; analysts expect slightly negative FCF in 2026. Snam is a regulated gas grid, so low FCF is partly structural in an investment phase. The 7th regulatory period (WACC, gearing, LNG return) will only be decided in Q1 2027. Insider trading and demand scenarios after 2030 have not been investigated further.