ERG SPA (ERG.MI) Stock Fundamental Analysis
BIT:ERG - Euronext Milan - IT0001157020 - Common Stock - Currency: EUR
Overall ERG gets a fundamental rating of 6 out of 10. We evaluated ERG against 21 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. 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
With an excellent Return On Assets value of 4.59%, ERG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
With an excellent Return On Equity value of 13.51%, ERG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.95%, ERG belongs to the best of the industry, outperforming 80.95% 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 4.75%.
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
The Profit Margin of ERG (26.09%) is better than 80.95% of its industry peers.
ERG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 37.02%, ERG belongs to the best of the industry, outperforming 85.71% 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 98.48%, ERG belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
ERG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
ERG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERG has less shares outstanding
ERG has a worse debt/assets ratio than last year.
2.2 Solvency
ERG has an Altman-Z score of 1.33. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
ERG has a Altman-Z score of 1.33. This is in the better half of the industry: ERG outperforms 61.90% of its industry peers.
ERG has a debt to FCF ratio of 12.33. This is a negative value and a sign of low solvency as ERG would need 12.33 years to pay back of all of its debts.
ERG has a better Debt to FCF ratio (12.33) than 76.19% 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.
With a Debt to Equity ratio value of 1.18, ERG is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.33 | ||
| Altman-Z | 1.33 |
ROIC/WACC1.3
WACC4.56%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ERG should not have too much problems paying its short term obligations.
ERG's Current ratio of 1.35 is in line compared to the rest of the industry. ERG outperforms 52.38% of its industry peers.
ERG has a Quick Ratio of 1.33. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.33, ERG is in line with its industry, outperforming 47.62% of the companies in the same industry.
| 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.
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.
ERG shows a decrease in Revenue. In the last year, the revenue decreased by -1.34%.
ERG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.29% yearly.
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 5.58% on average over the next years.
EPS Next Y3.03%
EPS Next 2Y5.5%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year9.51%
Revenue Next 2Y6.9%
Revenue Next 3Y5.58%
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
ERG is valuated reasonably with a Price/Earnings ratio of 10.39.
Compared to the rest of the industry, the Price/Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. ERG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.43 indicates a correct valuation of ERG.
Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. ERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
76.19% of the companies in the same industry are more expensive than ERG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.17 | ||
| EV/EBITDA | 6.07 |
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)3.43
PEG (5Y)0.24
EPS Next 2Y5.5%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 5.21%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.63. ERG pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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 52.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ERG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.43%
EPS Next 2Y5.5%
EPS Next 3Y1.47%
BIT:ERG (6/19/2025, 5:35:30 PM)
18.59
-0.09 (-0.48%)
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 Cap2.79B
Analysts72
Price Target23.07 (24.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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)-0.1%
PT rev (3m)-17.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 12.43 | ||
| P/S | 2.51 | ||
| P/FCF | 11.17 | ||
| P/OCF | 5.77 | ||
| P/B | 1.3 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)1.79
EY9.63%
EPS(NY)1.5
Fwd EY8.04%
FCF(TTM)1.66
FCFY8.96%
OCF(TTM)3.22
OCFY17.33%
SpS7.4
BVpS14.28
TBVpS3.77
PEG (NY)3.43
PEG (5Y)0.24
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 | 1.33 |
F-Score6
WACC4.56%
ROIC/WACC1.3
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 Year9.51%
Revenue Next 2Y6.9%
Revenue Next 3Y5.58%
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%