Snam S.p.A. (SRG.MI) stock analysis
In our weekly check, Snam S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4.
About Snam S.p.A.
Snam S.p.A. is an Utilities company (Regulated Gas) based in Italy, listed on MIL as SRG.MI.
What our checks show for SRG.MI
Red flags
- Net debt is 6.1x a year of EBITDA (debt/equity 2.76). That limits room in a downturn and raises refinancing risk.
- The net margin fell by 12.6 points over 5 years, to 33%: the company keeps less of each sale as profit.
- Free cash flow is negative (-0.5% of revenue): the business spends more cash than it brings in.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Revenue grew only 3.3% a year over the last 3 years.
- Return on capital (ROCE) is only 6.6%.
Strengths
- The gross margin is 65.2% and has risen by 10.9 points: pricing power is holding.
- Operating cash flow is 2.12x net profit: the profit arrives as real cash.
- Earnings per share grew 23.9% a year over the last 3 years.
- Net profit grew 23.7% a year over the last 3 years.
- The company keeps 33% of its revenue as net profit.
- A large company: market value $22.38 billion.
Next earnings report: 2026-11-11
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Questions
What grade does Snam S.p.A. (SRG.MI) have?
In our weekly check, Snam S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of SRG.MI stock?
This week's biggest flags for Snam S.p.A.: High debt, Margins falling, Weak free cash flow. In total 6 of 25 checks show a warning or a red flag.
What does Snam S.p.A. do?
Snam S.p.A. is an Utilities company (Regulated Gas) based in Italy, listed on MIL as SRG.MI.
When does Snam S.p.A. report earnings next?
The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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