Terna Energy Societe Anonyme Commercial Technical Company (TREAF)

Terna Energy Societe Anonyme Commercial Technical Company (TREAF) Utility Operations & Dividend Profile

Terna Energy is a Greek renewable energy company with operations in wind, hydro, and solar power. With approximately 1,300 MW of operational power, the company focuses on developing and operating renewable energy projects across Greece, the Balkans, Eastern Europe, and North America, contributing to a diversified energy portfolio.

What Is the Investment Thesis for TREAF?

Terna Energy presents an investment opportunity within the expanding renewable energy sector. With a P/E ratio of 42.0 and a profit margin of 20.4%, the company demonstrates profitability in a capital-intensive industry. The company's operational power of approximately 1,300 MW as of December 31, 2021, highlights its established presence in the market. Growth catalysts include expanding renewable energy projects in the Balkans, Eastern Europe, and North America. Potential risks include regulatory changes in the energy sector and competition from larger utility companies. The company's beta of 0.48 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

TREAF Key Highlights

• Market capitalization of $1.60B, reflecting substantial investor interest in the renewable energy sector.
• P/E ratio of 42.0, indicating the price investors are willing to pay for each dollar of earnings.
• Profit margin of 20.4%, showcasing the company's ability to generate profit from its revenue.
• Gross margin of 60.3%, highlighting efficient cost management in its operations.
• Operational power of approximately 1,300 MW as of December 31, 2021, demonstrating significant renewable energy capacity.

Who Are TREAF's Competitors?

TREAF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TREAF's Key Strengths?

• Diversified portfolio of renewable energy projects.
• Established presence in Greece and expanding operations in the Balkans, Eastern Europe, and North America.
• Expertise in public-private partnership (PPP) projects.
• Strong gross margin of 60.3%.

What Are TREAF's Weaknesses?

• Reliance on government incentives and subsidies for renewable energy projects.
• Exposure to regulatory changes in the energy sector.
• Limited brand recognition compared to larger utility companies.
• Trades on the OTC market, which can present liquidity challenges.

What Could Drive TREAF Stock Higher?

• Expansion of renewable energy projects in the Balkans and Eastern Europe.
• Potential contracts for infrastructure projects in Greece.
• Development of new photovoltaic parks.
• Entry into the North American market.
• Investments in pumped storage and hybrid stations.

What Are the Key Risks for TREAF?

• Financial-distress signal — its Altman Z-Score of 1.26 sits in the distress zone (elevated bankruptcy risk).
• Rich valuation — a P/E of 42.0 runs well above the Utilities sector’s ~28x, leaving little room for a miss.
• Regulatory changes in the energy sector.
• Increased competition from other renewable energy companies.
• Fluctuations in energy prices.
• Delays in project approvals and construction.
• Limited liquidity due to trading on the OTC market.

What Are the Growth Opportunities for TREAF?

• Expansion in the Balkans: Terna Energy has the opportunity to expand its renewable energy projects in the Balkans region. The region's growing demand for clean energy, coupled with supportive government policies, creates a favorable environment for renewable energy development. Terna Energy can leverage its expertise in wind and hydro projects to secure new contracts and increase its operational capacity. This expansion could add significantly to the company's revenue stream within the next 3-5 years.
• Development of Photovoltaic Parks: Terna Energy can further develop photovoltaic parks in Greece and other regions. The decreasing cost of solar technology and increasing efficiency of solar panels make photovoltaic projects an attractive investment. The company can capitalize on government incentives and subsidies for solar energy to develop large-scale photovoltaic parks, increasing its renewable energy output and revenue. This initiative could see substantial progress within the next 2-3 years.
• Infrastructure Projects in Greece: Terna Energy can leverage its expertise in infrastructure projects to secure contracts for public sector projects in Greece. The Greek government's focus on modernizing infrastructure, including waste management facilities and automatic collection systems, presents opportunities for Terna Energy to contribute its expertise. Securing and completing these projects would enhance the company's reputation and diversify its revenue streams over the next 5 years.
• North American Market Entry: Terna Energy has the opportunity to expand its operations in the North American market. The increasing demand for renewable energy in North America, driven by environmental regulations and corporate sustainability initiatives, creates a favorable environment for Terna Energy to establish a presence. The company can leverage its experience in wind and solar projects to develop and operate renewable energy facilities in the region, contributing to long-term growth and diversification.
• Pumped Storage and Hybrid Stations: Terna Energy can invest in pumped storage and hybrid stations to enhance the reliability and efficiency of its renewable energy operations. Pumped storage facilities can store excess energy generated from wind and solar projects, providing a reliable source of power during periods of low renewable energy output. Hybrid stations, combining different renewable energy sources, can optimize energy generation and reduce reliance on fossil fuels. These investments can improve the company's competitiveness and contribute to a more sustainable energy system.

What Opportunities Does TREAF Have?

• Expansion in the Balkans and Eastern Europe.
• Development of new photovoltaic parks.
• Securing contracts for infrastructure projects in Greece.
• Entry into the North American market.

What Threats Does TREAF Face?

• Increased competition from other renewable energy companies.
• Fluctuations in energy prices.
• Delays in project approvals and construction.
• Changes in government policies regarding renewable energy.

What Are TREAF's Competitive Advantages?

• Established presence in the Greek renewable energy market.
• Diversified portfolio of renewable energy projects, including wind, hydro, and solar.
• Expertise in public-private partnership (PPP) projects.
• Geographic diversification across Greece, the Balkans, Eastern Europe, and North America.

What Does TREAF Do?

Founded in 1949 and headquartered in Athens, Greece, Terna Energy Societe Anonyme Commercial Technical Company has evolved into a prominent player in the renewable energy sector. The company's operations span the construction, exploitation, and installation of renewable energy sources, including wind, hydroelectric, and photovoltaic parks. Terna Energy owns and operates a diverse portfolio of renewable energy projects, including wind parks, hydroelectric projects, pumped storage, hybrid stations, and photovoltaics. Additionally, the company is involved in public-private partnership (PPP) waste management projects, the production of biofuels, and soil conditioners. Terna Energy also engages in the construction and operation of infrastructure and public sector projects, such as unified automatic collection systems and municipal waste treatment facilities. As of December 31, 2021, Terna Energy had an operational power of approximately 1,300 MW and an installed capacity of 895.3 MW, solidifying its position as a key contributor to the renewable energy landscape in Greece and beyond. The company's strategic focus on renewable energy and infrastructure projects positions it for continued growth and sustainability.

What Products and Services Does TREAF Offer?

• Develop and operate wind parks for electricity generation.
• Construct and manage hydroelectric projects.
• Build and maintain photovoltaic parks for solar energy production.
• Engage in public-private partnership (PPP) waste management projects.
• Produce biofuels and soil conditioners.
• Construct and operate infrastructure projects, including waste treatment facilities.
• Trade electric energy in the Balkans, Eastern Europe, and North America.

How Does TREAF Make Money?

• Generate revenue by selling electricity produced from renewable energy sources.
• Secure contracts for the construction and operation of renewable energy projects.
• Engage in public-private partnership (PPP) agreements for waste management and infrastructure projects.
• Produce and sell biofuels and soil conditioners.

What Industry Does TREAF Operate In?

Terna Energy operates within the renewable energy sector, which is experiencing substantial growth driven by increasing environmental concerns and government incentives. The global renewable energy market is projected to reach significant value in the coming years, with wind and solar energy leading the growth. Terna Energy competes with other renewable energy companies and traditional utility providers. The company's focus on wind, hydro, and solar projects positions it to capitalize on the growing demand for clean energy solutions in Greece, the Balkans, Eastern Europe, and North America.

Who Are TREAF's Key Customers?

• Utility companies purchasing electricity generated from Terna Energy's renewable energy facilities.
• Government entities contracting Terna Energy for infrastructure and waste management projects.
• Businesses and consumers purchasing biofuels and soil conditioners.
• Municipalities utilizing waste treatment facilities.

FY2026 estForward Outlook

Wall Street analysts project Terna Energy Societe Anonyme Commercial Technical Company revenue of about $460.2M for fiscal 2026, with EPS near $0.78.

F-Score 5/9Financial Health

Terna Energy Societe Anonyme Commercial Technical Company's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.26 places it in the distress zone, a signal of elevated financial risk.

ROE 6%Key Financial Metrics

Return on equity for Terna Energy Societe Anonyme Commercial Technical Company stands at 6.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. TREAF trades at a trailing price-to-earnings ratio of 42.00, above the Utilities sector average of ~28x. Its free cash flow yield is 5.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.84 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.4%, the inverse of the P/E and a quick read on earnings relative to price.

Terna Energy Societe Anonyme Commercial Technical Company (TREAF) Valuation Context

Valued at $1.60B, TREAF is classified as a small-cap stock. Relative to its peer group, TREAF's quantitative score of 52/100 is roughly in line with the peer average of 55/100.

Company Profile

Terna Energy Societe Anonyme Commercial Technical Company operates in the Renewable Utilities industry within the Utilities sector. It is headquartered in Athens, GR. The company is led by CEO Emmanuel Maragoudakis. TREAF has traded publicly since 2014.

TREAF Financials

TREAF Latest News

No recent news available for TREAF.

TREAF Analyst Consensus

TREAF MoonshotScore

TREAF Utilities Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources