ERG SPA (ERG.MI) Stock Fundamental Analysis
BIT:ERG - Euronext Milan - IT0001157020 - Common Stock - Currency: EUR
ERG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG has an excellent profitability rating, but there are some minor concerns on its financial health. ERG is valued correctly, but it does not seem to be growing. Finally ERG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ERG was profitable.
ERG had a positive operating cash flow in the past year.
ERG had positive earnings in each of the past 5 years.
Each year in the past 5 years ERG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.59%, ERG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of ERG (13.51%) is better than 75.00% of its industry peers.
With a decent Return On Invested Capital value of 5.95%, ERG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 4.87%.
The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 13.51% | ||
| ROIC | 5.95% |
ROA(3y)4.55%
ROA(5y)3.78%
ROE(3y)11.87%
ROE(5y)10.57%
ROIC(3y)4.72%
ROIC(5y)3.97%
1.3 Margins
Looking at the Profit Margin, with a value of 26.09%, ERG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ERG has grown nicely.
The Operating Margin of ERG (37.02%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of ERG has grown nicely.
Looking at the Gross Margin, with a value of 98.48%, ERG belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ERG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.02% | ||
| PM (TTM) | 26.09% | ||
| GM | 98.48% |
OM growth 3Y4.11%
OM growth 5Y13.88%
PM growth 3Y-4.11%
PM growth 5Y52.35%
GM growth 3Y-0.12%
GM growth 5Y6.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERG is still creating some value.
The number of shares outstanding for ERG has been reduced compared to 1 year ago.
The number of shares outstanding for ERG has been reduced compared to 5 years ago.
The debt/assets ratio for ERG is higher compared to a year ago.
2.2 Solvency
ERG has an Altman-Z score of 1.34. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ERG (1.34) is comparable to the rest of the industry.
The Debt to FCF ratio of ERG is 12.33, which is on the high side as it means it would take ERG, 12.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ERG (12.33) is better than 75.00% of its industry peers.
ERG has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ERG (1.18) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.33 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.35
WACC4.4%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ERG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, ERG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that ERG should not have too much problems paying its short term obligations.
ERG's Quick ratio of 1.33 is in line compared to the rest of the industry. ERG outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for ERG have decreased by -6.71% in the last year.
ERG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.27% yearly.
Looking at the last year, ERG shows a decrease in Revenue. The Revenue has decreased by -1.34% in the last year.
The Revenue has been decreasing by -6.29% on average over the past years.
EPS 1Y (TTM)-6.71%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-35.48%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-7.8%
3.2 Future
ERG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.47% yearly.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y3.03%
EPS Next 2Y5.5%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year8.26%
Revenue Next 2Y7.04%
Revenue Next 3Y5.26%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.61, which indicates a very decent valuation of ERG.
Based on the Price/Earnings ratio, ERG is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.93. ERG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.70, ERG is valued correctly.
Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ERG is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)0.25
EPS Next 2Y5.5%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 5.23%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.33. ERG pays more dividend than 95.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
On average, the dividend of ERG grows each year by 6.57%, which is quite nice.
Dividend Growth(5Y)6.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
52.43% of the earnings are spent on dividend by ERG. This is a bit on the high side, but may be sustainable.
ERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.43%
EPS Next 2Y5.5%
EPS Next 3Y1.47%
BIT:ERG (8/14/2025, 7:00:00 PM)
18.99
+0.11 (+0.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners17.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.85B
Analysts71.43
Price Target23.27 (22.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend1.04
Dividend Growth(5Y)6.57%
DP52.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.44%
PT rev (3m)0.77%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 12.7 | ||
| P/S | 2.57 | ||
| P/FCF | 11.41 | ||
| P/OCF | 5.9 | ||
| P/B | 1.33 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)1.79
EY9.43%
EPS(NY)1.5
Fwd EY7.87%
FCF(TTM)1.66
FCFY8.77%
OCF(TTM)3.22
OCFY16.96%
SpS7.4
BVpS14.28
TBVpS3.77
PEG (NY)3.51
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 13.51% | ||
| ROCE | 7.72% | ||
| ROIC | 5.95% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 11.41% | ||
| OM | 37.02% | ||
| PM (TTM) | 26.09% | ||
| GM | 98.48% | ||
| FCFM | 22.5% |
ROA(3y)4.55%
ROA(5y)3.78%
ROE(3y)11.87%
ROE(5y)10.57%
ROIC(3y)4.72%
ROIC(5y)3.97%
ROICexc(3y)5.64%
ROICexc(5y)4.82%
ROICexgc(3y)8.71%
ROICexgc(5y)7.19%
ROCE(3y)6.04%
ROCE(5y)5.28%
ROICexcg growth 3Y13.65%
ROICexcg growth 5Y3.76%
ROICexc growth 3Y7.92%
ROICexc growth 5Y2.32%
OM growth 3Y4.11%
OM growth 5Y13.88%
PM growth 3Y-4.11%
PM growth 5Y52.35%
GM growth 3Y-0.12%
GM growth 5Y6.64%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.33 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 84.19% | ||
| Cap/Sales | 21.04% | ||
| Interest Coverage | 25.9 | ||
| Cash Conversion | 70.22% | ||
| Profit Quality | 86.26% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.34 |
F-Score6
WACC4.4%
ROIC/WACC1.35
Cap/Depr(3y)113.43%
Cap/Depr(5y)97.89%
Cap/Sales(3y)39.21%
Cap/Sales(5y)34.75%
Profit Quality(3y)163.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.71%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-35.48%
EPS Next Y3.03%
EPS Next 2Y5.5%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-7.8%
Revenue Next Year8.26%
Revenue Next 2Y7.04%
Revenue Next 3Y5.26%
Revenue Next 5YN/A
EBIT growth 1Y-10.15%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year99.87%
EBIT Next 3Y29.08%
EBIT Next 5YN/A
FCF growth 1Y-56.61%
FCF growth 3YN/A
FCF growth 5Y-11.63%
OCF growth 1Y-45.14%
OCF growth 3Y39.84%
OCF growth 5Y-2.18%