ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - BIT:ERG - IT0001157020 - Common Stock
20.2 EUR
+0.02 (+0.1%)
Taking everything into account, ERG scores 6 out of 10 in our fundamental rating. ERG was compared to 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 has a valuation in line with the averages, but it does not seem to be growing. ERG also has an excellent dividend rating. With these ratings, ERG could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
ERG had positive earnings in the past year.
ERG had a positive operating cash flow in the past year.
In the past 5 years ERG has always been profitable.
In the past 5 years ERG always reported a positive cash flow from operatings.
1.2 Ratios
ERG has a better Return On Assets (3.69%) than 75.00% of its industry peers.
ERG has a Return On Equity of 10.40%. This is in the better half of the industry: ERG outperforms 70.00% of its industry peers.
ERG's Return On Invested Capital of 5.33% is fine compared to the rest of the industry. ERG outperforms 80.00% of its industry peers.
ERG had an Average Return On Invested Capital over the past 3 years of 4.72%. This is in line with the industry average of 5.19%.
The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 10.4% | ||
| ROIC | 5.33% |
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
ERG's Profit Margin of 19.28% is fine compared to the rest of the industry. ERG outperforms 80.00% of its industry peers.
ERG's Profit Margin has improved in the last couple of years.
The Operating Margin of ERG (33.37%) is better than 85.00% of its industry peers.
ERG's Operating Margin has improved in the last couple of years.
ERG's Gross Margin of 98.63% is amongst the best of the industry. ERG outperforms 95.00% of its industry peers.
In the last couple of years the Gross Margin of ERG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.37% | ||
| PM (TTM) | 19.28% | ||
| GM | 98.63% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
Compared to 1 year ago, ERG has less shares outstanding
Compared to 5 years ago, ERG has less shares outstanding
The debt/assets ratio for ERG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that ERG is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.46, ERG is doing good in the industry, outperforming 65.00% of the companies in the same industry.
ERG has a debt to FCF ratio of 9.46. This is a negative value and a sign of low solvency as ERG would need 9.46 years to pay back of all of its debts.
ERG's Debt to FCF ratio of 9.46 is amongst the best of the industry. ERG outperforms 85.00% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that ERG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.30, ERG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.46 |
ROIC/WACC1.18
WACC4.52%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ERG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, ERG is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
ERG has a Quick Ratio of 1.65. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.65, ERG is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The earnings per share for ERG have decreased strongly by -36.52% in the last year.
Measured over the past years, ERG shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.27% on average per year.
The Revenue has decreased by -3.11% in the past year.
ERG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.29% yearly.
EPS 1Y (TTM)-36.52%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-39.18%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-0.99%
3.2 Future
ERG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y-4.11%
EPS Next 2Y3.94%
EPS Next 3Y3%
EPS Next 5Y-1.76%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.07%
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
Based on the Price/Earnings ratio of 14.03, the valuation of ERG can be described as correct.
70.00% of the companies in the same industry are more expensive than ERG, based on the Price/Earnings ratio.
ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 13.92, the valuation of ERG can be described as correct.
65.00% of the companies in the same industry are more expensive than ERG, based on the Price/Forward Earnings ratio.
ERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 75.00% of the companies in the same industry.
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 | 10.71 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y3.94%
EPS Next 3Y3%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.96%, which is a nice return.
Compared to an average industry Dividend Yield of 3.53, ERG pays a better dividend. On top of this ERG pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
5.2 History
The dividend of ERG is nicely growing with an annual growth rate of 6.57%!
Dividend Growth(5Y)6.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ERG pays out 72.21% of its income as dividend. This is not a sustainable payout ratio.
ERG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP72.21%
EPS Next 2Y3.94%
EPS Next 3Y3%
BIT:ERG (9/12/2025, 7:00:00 PM)
20.2
+0.02 (+0.1%)
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 Cap3.04B
Analysts74.29
Price Target23.62 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend1.04
Dividend Growth(5Y)6.57%
DP72.21%
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)1.53%
PT rev (3m)2.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.92 | ||
| P/S | 2.78 | ||
| P/FCF | 10.71 | ||
| P/OCF | 6.55 | ||
| P/B | 1.5 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)1.44
EY7.13%
EPS(NY)1.45
Fwd EY7.19%
FCF(TTM)1.89
FCFY9.33%
OCF(TTM)3.08
OCFY15.26%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 10.4% | ||
| ROCE | 6.94% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 8.48% | ||
| OM | 33.37% | ||
| PM (TTM) | 19.28% | ||
| GM | 98.63% | ||
| FCFM | 25.97% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 61.02% | ||
| Cap/Sales | 16.49% | ||
| Interest Coverage | 17.92 | ||
| Cash Conversion | 70.3% | ||
| Profit Quality | 134.72% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.46 |
F-Score6
WACC4.52%
ROIC/WACC1.18
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)-36.52%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-39.18%
EPS Next Y-4.11%
EPS Next 2Y3.94%
EPS Next 3Y3%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-0.99%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.07%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year99.87%
EBIT Next 3Y29.08%
EBIT Next 5Y21.22%
FCF growth 1Y218.17%
FCF growth 3YN/A
FCF growth 5Y-11.63%
OCF growth 1Y7.02%
OCF growth 3Y39.84%
OCF growth 5Y-2.18%