Snam (BIT:SRG) Reports Mixed Half Year Results, Is The Stock Still Cheap?

Snam (BIT:SRG) drew fresh attention on 29 July 2026 after reporting half year results that showed sales of €2,026 million compared with €1,906 million a year earlier, while net income eased to €733 million from €750 million.

See our latest analysis for Snam.

The mixed half-year results have come alongside a share price that eased over the past month, with a 30-day share price return of a 5.38% decline and a softer 90-day share price return of a 9.68% decline. However, Snam’s 1-year total shareholder return of 20.16% and 3-year total shareholder return of 50.91% still point to stronger gains for long-term holders.

If you are watching how energy infrastructure is repricing after earnings, it can also be useful to look at other grid-focused operators through our 37 power grid technology and infrastructure stocks

Snam’s share price has slipped even as revenue and long term returns still look resilient on paper. Does that setback leave enough upside to justify the earnings risk that recent results have highlighted?

Most Popular Narrative: 10.2% Undervalued

Against the last close of €5.84, the most followed narrative for Snam points to a fair value of €6.50. That gap sets the tone for how some investors frame the recent share price pullback.

Regulatory and investment momentum behind green hydrogen, biomethane, and carbon capture & storage (CCS), demonstrated by Snam's pipeline of hydrogen-ready projects, advancing CCS in Ravenna, and new regulatory frameworks, will unlock incremental revenue streams and drive higher long-term EBITDA margins.

Read the complete narrative. Read the complete narrative.

The valuation story for Snam does not rest on a single earnings line. It leans on steady revenue expansion, a richer margin profile, and a future profit multiple that implies confidence in regulated cash flows. Curious which assumptions carry the most weight in that €6.50 figure and how finely balanced they are against the discount rate and growth outlook? The full narrative lays out those moving parts in detail.

Result: Fair Value of €6.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Snam narrative could be tested if European decarbonization policies reduce long term gas demand, or if high capex and €17.6b net debt weigh on returns.

Find out about the key risks to this Snam narrative.

Another View On Snam’s Valuation

The narrative around Snam being undervalued hinges on cash flow based fair value. However, the current P/E of 17.6x is higher than the Italian peer average of 16.8x and below a fair ratio of 20x that the market could move towards. That mix can signal either upside potential or valuation risk.

To see how this price tag stacks up against the numbers in more detail, take a look at our valuation breakdown, including the fair ratio comparison, through the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and concern around Snam, it helps to review the data directly and move quickly to sharpen your own view using the 2 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Snam?

If Snam has sharpened your focus on quality and valuation, now is the moment to widen your net across other opportunities before the next move in the market.

• Target potential bargains that combine quality and attractive pricing by scanning through the 263 high quality undervalued stocks.
• Strengthen the core of your portfolio by focusing on companies with resilient finances via the solid balance sheet and fundamentals stocks screener (423 results).
• Spot under-the-radar opportunities before they are widely followed by checking our screener containing 553 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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