ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

22.5 EUR
+0.14 (+0.63%)
Last:

This ERG.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERG.MI Profitability Analysis

1.1 Basic Checks

  • ERG had positive earnings in the past year.
  • ERG had a positive operating cash flow in the past year.
  • ERG had positive earnings in each of the past 5 years.
  • ERG had a positive operating cash flow in each of the past 5 years.
ERG.MI Yearly Net Income VS EBIT VS OCF VS FCFERG.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • ERG has a better Return On Assets (2.51%) than 66.67% of its industry peers.
  • ERG has a Return On Equity of 7.12%. This is in the better half of the industry: ERG outperforms 61.90% of its industry peers.
  • ERG has a Return On Invested Capital of 5.63%. This is in the better half of the industry: ERG outperforms 76.19% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ERG is in line with the industry average of 5.21%.
  • The 3 year average ROIC (4.15%) for ERG is below the current ROIC(5.63%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.51%
ROE 7.12%
ROIC 5.63%
ROA(3y)2.52%
ROA(5y)3.54%
ROE(3y)6.79%
ROE(5y)10%
ROIC(3y)4.15%
ROIC(5y)4.13%
ERG.MI Yearly ROA, ROE, ROICERG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • The Profit Margin of ERG (12.58%) is better than 80.95% of its industry peers.
  • ERG's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 33.98%, ERG belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
  • ERG's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 98.78%, ERG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ERG has grown nicely.
Industry RankSector Rank
OM 33.98%
PM (TTM) 12.58%
GM 98.78%
OM growth 3Y-5.7%
OM growth 5Y13.74%
PM growth 3Y-44.31%
PM growth 5Y-7.07%
GM growth 3Y0.29%
GM growth 5Y8.06%
ERG.MI Yearly Profit, Operating, Gross MarginsERG.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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5

2. ERG.MI Health Analysis

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.
  • ERG has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ERG has been reduced compared to 5 years ago.
  • ERG has a better debt/assets ratio than last year.
ERG.MI Yearly Shares OutstandingERG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
ERG.MI Yearly Total Debt VS Total AssetsERG.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 1.54, we must say that ERG is in the distress zone and has some risk of bankruptcy.
  • ERG has a better Altman-Z score (1.54) than 66.67% of its industry peers.
  • The Debt to FCF ratio of ERG is 11.32, which is on the high side as it means it would take ERG, 11.32 years of fcf income to pay off all of its debts.
  • ERG has a Debt to FCF ratio of 11.32. This is amongst the best in the industry. ERG outperforms 80.95% of its industry peers.
  • A Debt/Equity ratio of 1.31 is on the high side and indicates that ERG has dependencies on debt financing.
  • ERG's Debt to Equity ratio of 1.31 is in line compared to the rest of the industry. ERG outperforms 42.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Altman-Z 1.54
ROIC/WACC1.21
WACC4.66%
ERG.MI Yearly LT Debt VS Equity VS FCFERG.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that ERG should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.75, ERG is in line with its industry, outperforming 52.38% of the companies in the same industry.
  • A Quick Ratio of 1.70 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG's Quick ratio of 1.70 is in line compared to the rest of the industry. ERG outperforms 57.14% of its industry peers.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.7
ERG.MI Yearly Current Assets VS Current LiabilitesERG.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. ERG.MI Growth Analysis

3.1 Past

  • The earnings per share for ERG have decreased strongly by -50.49% in the last year.
  • The Earnings Per Share has been decreasing by -9.38% on average over the past years.
  • ERG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
  • ERG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.78% yearly.
EPS 1Y (TTM)-50.49%
EPS 3Y-44.18%
EPS 5Y-9.38%
EPS Q2Q%-119.92%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.24%
Revenue growth 5Y-2.78%
Sales Q2Q%2.66%

3.2 Future

  • Based on estimates for the next years, ERG will show a small growth in Earnings Per Share. The EPS will grow by 6.75% on average per year.
  • ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y8.78%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
EPS Next 5YN/A
Revenue Next Year1.22%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ERG.MI Yearly Revenue VS EstimatesERG.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ERG.MI Yearly EPS VS EstimatesERG.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

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4

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.96, which indicates a rather expensive current valuation of ERG.
  • 66.67% of the companies in the same industry are more expensive than ERG, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, ERG is valued at the same level.
  • The Price/Forward Earnings ratio is 18.64, which indicates a rather expensive current valuation of ERG.
  • ERG's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, ERG is valued a bit cheaper.
Industry RankSector Rank
PE 22.96
Fwd PE 18.64
ERG.MI Price Earnings VS Forward Price EarningsERG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • ERG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERG is cheaper than 66.67% of the companies in the same industry.
  • 66.67% of the companies in the same industry are more expensive than ERG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.59
EV/EBITDA 7.04
ERG.MI Per share dataERG.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ERG does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)N/A
EPS Next 2Y5.69%
EPS Next 3Y6.75%

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7

5. ERG.MI Dividend Analysis

5.1 Amount

  • ERG has a Yearly Dividend Yield of 4.47%, which is a nice return.
  • ERG's Dividend Yield is rather good when compared to the industry average which is at 2.37. ERG pays more dividend than 85.71% of the companies in the same industry.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 4.47%

5.2 History

  • On average, the dividend of ERG grows each year by 6.07%, which is quite nice.
Dividend Growth(5Y)6.07%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • ERG pays out 107.37% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of ERG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP107.37%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
ERG.MI Yearly Income VS Free CF VS DividendERG.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M
ERG.MI Dividend Payout.ERG.MI Dividend Payout, showing the Payout Ratio.ERG.MI Dividend Payout.PayoutRetained Earnings

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ERG.MI Fundamentals: All Metrics, Ratios and Statistics

ERG SPA

BIT:ERG (4/10/2026, 7:00:00 PM)

22.5

+0.14 (+0.63%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-09
Earnings (Next)05-13
Inst Owners18.59%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.38B
Revenue(TTM)1.12B
Net Income(TTM)140.96M
Analysts68
Price Target23.18 (3.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.47%
Yearly Dividend1.04
Dividend Growth(5Y)6.07%
DP107.37%
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)-4.92%
PT rev (3m)-4.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.97%
EPS NY rev (3m)-16.89%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.21%
Revenue NY rev (3m)-6.49%
Valuation
Industry RankSector Rank
PE 22.96
Fwd PE 18.64
P/S 3.02
P/FCF 14.59
P/OCF 8.37
P/B 1.71
P/tB 5.94
EV/EBITDA 7.04
EPS(TTM)0.98
EY4.36%
EPS(NY)1.21
Fwd EY5.37%
FCF(TTM)1.54
FCFY6.86%
OCF(TTM)2.69
OCFY11.95%
SpS7.45
BVpS13.17
TBVpS3.79
PEG (NY)2.62
PEG (5Y)N/A
Graham Number17.04
Profitability
Industry RankSector Rank
ROA 2.51%
ROE 7.12%
ROCE 7.39%
ROIC 5.63%
ROICexc 6.23%
ROICexgc 8.77%
OM 33.98%
PM (TTM) 12.58%
GM 98.78%
FCFM 20.69%
ROA(3y)2.52%
ROA(5y)3.54%
ROE(3y)6.79%
ROE(5y)10%
ROIC(3y)4.15%
ROIC(5y)4.13%
ROICexc(3y)4.88%
ROICexc(5y)4.95%
ROICexgc(3y)7.29%
ROICexgc(5y)7.37%
ROCE(3y)5.4%
ROCE(5y)5.52%
ROICexgc growth 3Y-16.45%
ROICexgc growth 5Y3.74%
ROICexc growth 3Y-13.37%
ROICexc growth 5Y3.89%
OM growth 3Y-5.7%
OM growth 5Y13.74%
PM growth 3Y-44.31%
PM growth 5Y-7.07%
GM growth 3Y0.29%
GM growth 5Y8.06%
F-Score7
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Debt/EBITDA 3.52
Cap/Depr 48.67%
Cap/Sales 15.37%
Interest Coverage 13.24
Cash Conversion 55%
Profit Quality 164.49%
Current Ratio 1.75
Quick Ratio 1.7
Altman-Z 1.54
F-Score7
WACC4.66%
ROIC/WACC1.21
Cap/Depr(3y)89.61%
Cap/Depr(5y)100.44%
Cap/Sales(3y)32.12%
Cap/Sales(5y)36.81%
Profit Quality(3y)271.17%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50.49%
EPS 3Y-44.18%
EPS 5Y-9.38%
EPS Q2Q%-119.92%
EPS Next Y8.78%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
EPS Next 5YN/A
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.24%
Revenue growth 5Y-2.78%
Sales Q2Q%2.66%
Revenue Next Year1.22%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
Revenue Next 5YN/A
EBIT growth 1Y-7.5%
EBIT growth 3Y-5.93%
EBIT growth 5Y10.58%
EBIT Next Year104.29%
EBIT Next 3Y30.29%
EBIT Next 5YN/A
FCF growth 1Y-7.35%
FCF growth 3Y23.1%
FCF growth 5Y-4.9%
OCF growth 1Y-16.53%
OCF growth 3Y-4.15%
OCF growth 5Y-0.32%

ERG SPA / ERG.MI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ERG SPA (ERG.MI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERG.MI.


Can you provide the valuation status for ERG SPA?

ChartMill assigns a valuation rating of 5 / 10 to ERG SPA (ERG.MI). This can be considered as Fairly Valued.


How profitable is ERG SPA (ERG.MI) stock?

ERG SPA (ERG.MI) has a profitability rating of 8 / 10.


How financially healthy is ERG SPA?

The financial health rating of ERG SPA (ERG.MI) is 5 / 10.


What is the earnings growth outlook for ERG SPA?

The Earnings per Share (EPS) of ERG SPA (ERG.MI) is expected to grow by 8.78% in the next year.