ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

21.78 EUR
-0.78 (-3.46%)
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

  • In the past year ERG was profitable.
  • 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.
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 0 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of ERG (3.69%) is better than 75.00% of its industry peers.
  • The Return On Equity of ERG (10.40%) is better than 75.00% of its industry peers.
  • ERG has a Return On Invested Capital of 5.33%. This is in the better half 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 4.86%.
  • The last Return On Invested Capital (5.33%) for ERG is above the 3 year average (4.72%), which is a sign of increasing profitability.
Industry RankSector 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%
ERG.MI Yearly ROA, ROE, ROICERG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 19.28%, ERG belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • ERG's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 33.37%, ERG belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERG has grown nicely.
  • Looking at the Gross Margin, with a value of 98.63%, ERG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • ERG's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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 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.
  • The debt/assets ratio for ERG is higher compared to a year ago.
ERG.MI Yearly Shares OutstandingERG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B

2.2 Solvency

  • ERG has an Altman-Z score of 1.50. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
  • ERG's Altman-Z score of 1.50 is fine compared to the rest of the industry. ERG outperforms 65.00% of its industry peers.
  • 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's Debt to FCF ratio of 9.46 is amongst the best of 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 perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.5
ROIC/WACC1.14
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 0 500M 1B 1.5B 2B

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 (1.71) which is in line with 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.
  • ERG has a Quick ratio (1.65) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.65
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 500M 1B 1.5B

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3

3. ERG.MI Growth Analysis

3.1 Past

  • ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.84%.
  • 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 -1.77% 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)-34.84%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%8.85%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%12.82%

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.
  • 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-9.12%
EPS Next 2Y4.66%
EPS Next 3Y3.27%
EPS Next 5Y-1.76%
Revenue Next Year4.88%
Revenue Next 2Y6.16%
Revenue Next 3Y4.74%
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.
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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6

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.92, ERG is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 80.00% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.71. ERG is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 14.80 indicates a correct valuation of ERG.
  • Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than 70.00% of the companies in the same industry.
  • ERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.92
Fwd PE 14.8
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 75.00% of the companies listed in the same industry.
  • 85.00% 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 11.55
EV/EBITDA 7.75
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

  • ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y4.66%
EPS Next 3Y3.27%

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7

5. ERG.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.43%, ERG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.44, ERG pays a better dividend. On top of this ERG pays more dividend than 85.00% of the companies listed in the same industry.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 4.43%

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

  • 72.21% of the earnings are spent on dividend by ERG. 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 2Y4.66%
EPS Next 3Y3.27%
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 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 (3/13/2026, 7:00:00 PM)

21.78

-0.78 (-3.46%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-09
Earnings (Next)05-13
Inst Owners18.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.27B
Revenue(TTM)1.11B
Net Income(TTM)210.37M
Analysts72
Price Target24.38 (11.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.43%
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)0.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.07%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-1.18%
Valuation
Industry RankSector Rank
PE 14.92
Fwd PE 14.8
P/S 3
P/FCF 11.55
P/OCF 7.07
P/B 1.62
P/tB 6.66
EV/EBITDA 7.75
EPS(TTM)1.46
EY6.7%
EPS(NY)1.47
Fwd EY6.76%
FCF(TTM)1.89
FCFY8.66%
OCF(TTM)3.08
OCFY14.15%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.34
Graham Number21.03
Profitability
Industry RankSector 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 RankSector 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 1.5
F-Score6
WACC4.66%
ROIC/WACC1.14
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)-34.84%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%8.85%
EPS Next Y-9.12%
EPS Next 2Y4.66%
EPS Next 3Y3.27%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%12.82%
Revenue Next Year4.88%
Revenue Next 2Y6.16%
Revenue Next 3Y4.74%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year94.3%
EBIT Next 3Y29.58%
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 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 6 / 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 5 / 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%.