Terna - Rete Elettrica Nazionale Società per Azioni (TRN.MI) stock analysis

In our weekly check, Terna - Rete Elettrica Nazionale Società per Azioni is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About Terna - Rete Elettrica Nazionale Società per Azioni

Terna - Rete Elettrica Nazionale Società per Azioni is an Utilities company (Regulated Electric) based in Italy, listed on MIL as TRN.MI.

What our checks show for TRN.MI

Red flags

• The gross margin fell by 36 points, to 48.1%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 4.8 points from today's 28.1%.
• Free cash flow is negative (-8% 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

• Net debt is 3.7x a year of EBITDA (debt/equity 1.72). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 2.6 points over 5 years, to 28.1%: the company keeps less of each sale as profit.
• Return on capital (ROCE) is only 7.7%.

Strengths

• Operating cash flow is 2.36x net profit: the profit arrives as real cash.
• The company keeps 28.1% of its revenue as net profit.
• A large company: market value $21.29 billion.
• The price moves calmly: 16.7% annual volatility.
• Beta 0.6: the stock usually moves less than the market.
• Actively traded: about 3.7 million shares a day.

Next earnings report: 2026-11-12

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EVRG · LNT · EIX · EMA · ES

Questions

What grade does Terna - Rete Elettrica Nazionale Società per Azioni (TRN.MI) have?

In our weekly check, Terna - Rete Elettrica Nazionale Società per Azioni is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TRN.MI stock?

This week's biggest flags for Terna - Rete Elettrica Nazionale Società per Azioni: Gross margin falling, Margins expected to shrink, Weak free cash flow. In total 7 of 25 checks show a warning or a red flag.

What does Terna - Rete Elettrica Nazionale Società per Azioni do?

Terna - Rete Elettrica Nazionale Società per Azioni is an Utilities company (Regulated Electric) based in Italy, listed on MIL as TRN.MI.

When does Terna - Rete Elettrica Nazionale Società per Azioni report earnings next?

The next earnings report is expected on 2026-11-12. 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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