Rankings Utilities & power Terna
Terna
66
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- FCF yield−4
- Quality of growth−3
- Multiples vs own history and peers−3
Strengths
- Regulated monopoly+2
- Credit rating+1
How the score is built
From 100 to 66, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
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
- 9.64 EUR
- Median analyst target
- 10.00 EUR
- Upside to median
- +3.7%
- Analysts
- 20
- Target range
- 8.70 – 11.20 EUR
- 52-week change
- +8%
- P/E (trailing)
- 18.1
- Forward P/E
- 17.3
- PEG
- 4.40
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−5 of −30
- −2ROIC and marginROIC 5.0% vs a WACC of 4.8% – only just above the cost of capital; ROE has fallen from 17.6% (2021) to 13.8% TTM and net margin from 30.8% to 25.3%, partly because the lower-margin non-regulated business is growing.
- −3Quality of growthRevenue rose 12% and EBITDA 8% in H1 2026, but net income only 1% due to higher financing costs and IRAP; EPS was €0.53 in both 2024 and 2025, and analysts expect only about 4% annual EPS growth over the next three years.
Price
Today's multiples against the company's own history and its peers. · 2 findings−7 of −35
- −3Multiples vs own history and peersTrailing P/E 17.3 vs. 14.4–18.1 in 2021–2025 (upper half), forward P/E 16.5 vs. 15.5–18.8, EV/EBITDA 10.9 vs. 9.9–13.1 and P/B 2.13 vs. 2.03–3.03. Mid-range of own history, but more expensive than Enel (forward P/E 11.8) and E.ON (14.7) with lower EPS growth.
- −4FCF yieldNegative FCF in four of the last five years (−€0.26bn TTM), and analysts expect FCF of −€1.7bn in 2026, equal to about −9% of the €18.4bn market value, as investments rise to €4.2bn.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−8 of −35
- −3Regulation (WACC and new period)Management states that mark-to-market estimates for WACC in 2027 point to a lower level under the current formula, and the new regulatory period from 2028 and the ROSS incentive scheme are still without a consultation paper.
- −3Debt and distributionsNet debt €12.6bn, net debt/EBITDA 4.5x and debt/EBITDA 5.2x; the dividend of €0.85bn TTM is paid while FCF is negative and was effectively covered by a €850m hybrid bond in January 2026. Investments of €4.2bn in 2026 vs operating cash flow of €2.9bn TTM.
- −1Special tax (IRAP)The higher IRAP tax from the Italian energy decree pulled net profit down: +1% reported vs +4% adjusted in H1 2026.
- −1Execution of the investment programmeInvestments rose 20% in H1 and are to rise 19% to €4.2bn for the year; management itself cites geopolitical tensions affecting material costs and procurement.
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Regulated monopolyRegulated EBITDA of 1.4 bn € out of 1.5 bn € in H1; output-based incentives contributed 76 m € in the half-year and are expected to contribute about 200 m € in 2026. Guidance for 2026 (EBITDA 2.93 bn €, net income 1.12 bn €) confirmed.
- +1Credit ratingUpgraded by both S&P and Moody's in 2025; 72% of gross debt is fixed-rate with about 6 years' maturity, and the green hybrid from January 2026 was issued with the lowest subordination premium for a euro hybrid.
Caveats
What the score does not capture, or where the data is weak.
Terna is a regulated transmission monopoly, so negative FCF is structural in an investment phase and should be read together with RAB growth; stockanalysis' RAB figure does not exist, and RAB has not been investigated. 'Issuance of Common Stock' of €845m TTM is the green hybrid bond from January 2026, not an equity issue – no deduction was made for dilution. Stockanalysis shows a dividend of €0.37 for 2025 vs. €0.40 for 2024; according to the company the dividend has been raised 10 years in a row, so the figure is not used. The regulated WACC of 5.5% is confirmed for 2026; the level for 2027 and the new period from 2028 is unknown. Industry set to Utilities & power like E.ON (regulated networks); Grids & electrical equipment is used in the model for equipment manufacturers. Insider trading and state ownership (CDP) have not been investigated further.
Also in Utilities & power
The highest scores in the same industry.
