ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - BIT:ERG - IT0001157020 - Common Stock
21.42 EUR
-0.78 (-3.51%)
ERG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Independent Power and Renewable Electricity Producers industry. While ERG belongs to the best of the industry regarding profitability, 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
In the past year ERG was profitable.
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 73.68% of its industry peers.
ERG's Return On Equity of 10.40% is fine compared to the rest of the industry. ERG outperforms 73.68% of its industry peers.
ERG's Return On Invested Capital of 5.33% is fine compared to the rest of the industry. ERG outperforms 73.68% 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 5.60%.
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 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
Looking at the Profit Margin, with a value of 19.28%, ERG belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Profit Margin of ERG has grown nicely.
ERG has a Operating Margin of 33.37%. This is amongst the best in the industry. ERG outperforms 89.47% 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.
ERG's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, ERG has less shares outstanding
Compared to 5 years ago, ERG has less shares outstanding
ERG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that ERG is in the distress zone and has some risk of bankruptcy.
ERG's Altman-Z score of 1.49 is fine compared to the rest of the industry. ERG outperforms 63.16% of its industry peers.
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 has a better Debt to FCF ratio (9.46) than 84.21% 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.
ERG has a Debt to Equity ratio of 1.30. This is comparable to the rest of the industry: ERG outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.14
WACC4.66%
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.
A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
ERG has a Quick ratio of 1.65. This is comparable to the rest of the industry: ERG outperforms 57.89% of its industry peers.
| 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.
Looking at the last year, ERG shows a decrease in Revenue. The Revenue has decreased by -3.11% in the last 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
Based on estimates for the next years, ERG will show a decrease in Earnings Per Share. The EPS will decrease by -1.78% on average per year.
ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
EPS Next 5Y-1.78%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.88, 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 78.95% of the companies listed in the same industry.
ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
ERG is valuated correctly with a Price/Forward Earnings ratio of 14.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ERG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 68.42% 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 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 7.67 |
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 2Y4.47%
EPS Next 3Y3.16%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.50%, which is a nice return.
Compared to an average industry Dividend Yield of 3.45, ERG pays a better dividend. On top of this ERG pays more dividend than 94.74% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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.
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 2Y4.47%
EPS Next 3Y3.16%
BIT:ERG (11/14/2025, 7:00:00 PM)
21.42
-0.78 (-3.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.22B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.03 (12.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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)1.73%
PT rev (3m)3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.61 | ||
| P/S | 2.95 | ||
| P/FCF | 11.36 | ||
| P/OCF | 6.95 | ||
| P/B | 1.59 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)1.44
EY6.72%
EPS(NY)1.47
Fwd EY6.84%
FCF(TTM)1.89
FCFY8.8%
OCF(TTM)3.08
OCFY14.39%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.34
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 | 1.49 |
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)-36.52%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-39.18%
EPS Next Y-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
EPS Next 5Y-1.78%
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 5Y5.05%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.22%
EBIT Next 3Y29.04%
EBIT Next 5Y21.19%
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 6 / 10 to ERG.MI.
What is the valuation status of ERG SPA (ERG.MI) stock?
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.
How financially healthy is ERG SPA?
The financial health rating of ERG SPA (ERG.MI) is 5 / 10.
Can you provide the dividend sustainability for ERG stock?
The dividend rating of ERG SPA (ERG.MI) is 7 / 10 and the dividend payout ratio is 72.21%.