ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ERG - IT0001157020 - Common Stock
22.66 EUR
+0.3 (+1.34%)
Taking everything into account, ERG scores 5 out of 10 in our fundamental rating. ERG was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG scores excellent on profitability, but there are some minor concerns on its financial health. ERG has a valuation in line with the averages, but on the other hand it scores bad on growth. ERG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ERG had positive earnings in the past year.
- In the past year ERG had a positive cash flow from operations.
- Each year in the past 5 years ERG has been profitable.
- Each year in the past 5 years ERG had a positive operating cash flow.
1.2 Ratios
- ERG has a Return On Assets of 3.69%. This is in the better half of the industry: ERG outperforms 75.00% of its industry peers.
- ERG has a better Return On Equity (10.40%) than 75.00% of its industry peers.
- ERG has a better Return On Invested Capital (5.33%) than 80.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 5.11%.
- 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
- The Profit Margin of ERG (19.28%) is better than 85.00% of its industry peers.
- In the last couple of years the Profit Margin of ERG has grown nicely.
- ERG has a better Operating Margin (33.37%) than 90.00% of its industry peers.
- ERG's Operating Margin has improved in the last couple of years.
- ERG has a better Gross Margin (98.63%) than 100.00% 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
- 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.
- 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
- ERG has an Altman-Z score of 1.51. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.51, ERG is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- The Debt to FCF ratio of ERG is 9.46, which is on the high side as it means it would take ERG, 9.46 years of fcf income to pay off all of its debts.
- ERG has a Debt to FCF ratio of 9.46. This is amongst the best in the industry. ERG outperforms 85.00% of its industry peers.
- ERG has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external 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 | 1.51 |
ROIC/WACC1.13
WACC4.72%
2.3 Liquidity
- ERG has a Current Ratio of 1.71. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
- ERG has a Current ratio of 1.71. This is comparable to the rest of the industry: ERG outperforms 55.00% of its industry peers.
- 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 Quick ratio value of 1.65, ERG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
- ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.52%.
- The Earnings Per Share has been growing by 43.27% on average over the past years. This is a very strong growth
- ERG shows a decrease in Revenue. In the last year, the revenue decreased by -3.11%.
- Measured over the past years, ERG shows a decrease in Revenue. The Revenue has been decreasing by -6.29% on average per year.
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
- The Earnings Per Share is expected to decrease by -1.76% on average over the next years.
- ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
EPS Next 5Y-1.76%
Revenue Next Year6.13%
Revenue Next 2Y6.32%
Revenue Next 3Y4.91%
Revenue Next 5Y5.19%
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
- ERG is valuated correctly with a Price/Earnings ratio of 15.74.
- ERG's Price/Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 80.00% of the companies in the same industry.
- ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.47.
- ERG is valuated correctly with a Price/Forward Earnings ratio of 15.60.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 70.00% of the companies listed in the same industry.
- ERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
- ERG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERG is cheaper than 65.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
- The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y3.98%
EPS Next 3Y3.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.41%, ERG is a good candidate for dividend investing.
- ERG's Dividend Yield is rather good when compared to the industry average which is at 2.25. ERG pays more dividend than 90.00% of the companies in the same industry.
- ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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
- ERG pays out 72.21% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of ERG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP72.21%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
BIT:ERG (1/16/2026, 7:00:00 PM)
22.66
+0.3 (+1.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14 2025-11-14
Earnings (Next)03-09 2026-03-09/amc
Inst Owners19.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.41B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.3 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)0%
PT rev (3m)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.6 | ||
| P/S | 3.12 | ||
| P/FCF | 12.02 | ||
| P/OCF | 7.35 | ||
| P/B | 1.68 | ||
| P/tB | 6.93 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)1.44
EY6.35%
EPS(NY)1.45
Fwd EY6.41%
FCF(TTM)1.89
FCFY8.32%
OCF(TTM)3.08
OCFY13.6%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.36
Graham Number20.88
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%
ROICexgc growth 3Y13.65%
ROICexgc 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 | 1.51 |
F-Score6
WACC4.72%
ROIC/WACC1.13
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-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
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 Year6.13%
Revenue Next 2Y6.32%
Revenue Next 3Y4.91%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.28%
EBIT Next 3Y29.6%
EBIT Next 5Y21.48%
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%
ERG SPA / ERG.MI FAQ
What is the ChartMill fundamental rating of ERG SPA (ERG.MI) stock?
ChartMill assigns a fundamental rating of 5 / 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.
What is the profitability of ERG stock?
ERG SPA (ERG.MI) has a profitability rating of 8 / 10.
What is the financial health of ERG SPA (ERG.MI) stock?
The financial health rating of ERG SPA (ERG.MI) is 4 / 10.
How sustainable is the dividend of ERG SPA (ERG.MI) stock?
The dividend rating of ERG SPA (ERG.MI) is 7 / 10 and the dividend payout ratio is 72.21%.