HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - BIT:HER - IT0001250932 - Common Stock
3.758 EUR
+0.04 (+1.02%)
Overall HER gets a fundamental rating of 6 out of 10. We evaluated HER against 13 industry peers in the Multi-Utilities industry. HER has only an average score on both its financial health and profitability. HER has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HER was profitable.
HER had a positive operating cash flow in the past year.
Each year in the past 5 years HER has been profitable.
Each year in the past 5 years HER had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HER (5.05%) is better than 92.31% of its industry peers.
HER has a better Return On Equity (19.06%) than 84.62% of its industry peers.
HER's Return On Invested Capital of 8.49% is amongst the best of the industry. HER outperforms 84.62% of its industry peers.
HER had an Average Return On Invested Capital over the past 3 years of 5.37%. This is in line with the industry average of 6.46%.
The last Return On Invested Capital (8.49%) for HER is above the 3 year average (5.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.06% | ||
| ROIC | 8.49% |
ROA(3y)2.57%
ROA(5y)2.56%
ROE(3y)11.26%
ROE(5y)10.89%
ROIC(3y)5.37%
ROIC(5y)5.24%
1.3 Margins
HER has a Profit Margin of 3.43%. This is in the lower half of the industry: HER underperforms 69.23% of its industry peers.
HER's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.81%, HER is doing worse than 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of HER has declined.
Looking at the Gross Margin, with a value of 43.17%, HER is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Gross Margin of HER has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.81% | ||
| PM (TTM) | 3.43% | ||
| GM | 43.17% |
OM growth 3Y3.35%
OM growth 5Y-3.88%
PM growth 3Y6.68%
PM growth 5Y-7.22%
GM growth 3Y7.1%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HER is still creating some value.
The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
The number of shares outstanding for HER has been reduced compared to 5 years ago.
The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
HER has an Altman-Z score of 2.37. This is not the best score and indicates that HER is in the grey zone with still only limited risk for bankruptcy at the moment.
HER's Altman-Z score of 2.37 is amongst the best of the industry. HER outperforms 100.00% of its industry peers.
The Debt to FCF ratio of HER is 16.79, which is on the high side as it means it would take HER, 16.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HER (16.79) is better than 76.92% of its industry peers.
HER has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HER (1.27) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 16.79 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.59
WACC5.34%
2.3 Liquidity
A Current Ratio of 1.16 indicates that HER should not have too much problems paying its short term obligations.
The Current ratio of HER (1.16) is better than 84.62% of its industry peers.
HER has a Quick Ratio of 1.13. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
HER has a better Quick ratio (1.13) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
HER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.13%, which is quite impressive.
HER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
Looking at the last year, HER shows a quite strong growth in Revenue. The Revenue has grown by 16.77% in the last year.
The Revenue has been growing by 13.27% on average over the past years. This is quite good.
EPS 1Y (TTM)21.13%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%4.73%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%22.57%
3.2 Future
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.28% yearly.
HER is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.75% yearly.
EPS Next Y6.56%
EPS Next 2Y3.98%
EPS Next 3Y4.1%
EPS Next 5Y3.28%
Revenue Next Year-7.73%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.75%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.52 indicates a rather cheap valuation of HER.
HER's Price/Earnings ratio is a bit cheaper when compared to the industry. HER is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.32, HER is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.56, the valuation of HER can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HER is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (22.89), we can say HER is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
HER's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HER may justify a higher PE ratio.
PEG (NY)1.15
PEG (5Y)1.36
EPS Next 2Y3.98%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, HER is a good candidate for dividend investing.
With a Dividend Yield of 4.01, HER pays less dividend than the industry average, which is at 5.12. 84.62% of the companies listed in the same industry pay a better dividend than HER!
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
The dividend of HER is nicely growing with an annual growth rate of 9.46%!
Dividend Growth(5Y)9.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.25% of the earnings are spent on dividend by HER. This is a low number and sustainable payout ratio.
HER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.25%
EPS Next 2Y3.98%
EPS Next 3Y4.1%
BIT:HER (9/26/2025, 7:00:00 PM)
3.758
+0.04 (+1.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners21.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.60B
Analysts75.56
Price Target4.26 (13.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP38.25%
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)-0.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.96%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.27 | ||
| P/FCF | 16.98 | ||
| P/OCF | 4.44 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.26 |
EPS(TTM)0.5
EY13.3%
EPS(NY)0.33
Fwd EY8.65%
FCF(TTM)0.22
FCFY5.89%
OCF(TTM)0.85
OCFY22.5%
SpS14.17
BVpS2.55
TBVpS-1.48
PEG (NY)1.15
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.06% | ||
| ROCE | 12.64% | ||
| ROIC | 8.49% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 34.5% | ||
| OM | 5.81% | ||
| PM (TTM) | 3.43% | ||
| GM | 43.17% | ||
| FCFM | 1.56% |
ROA(3y)2.57%
ROA(5y)2.56%
ROE(3y)11.26%
ROE(5y)10.89%
ROIC(3y)5.37%
ROIC(5y)5.24%
ROICexc(3y)6.37%
ROICexc(5y)6.12%
ROICexgc(3y)22.48%
ROICexgc(5y)21.02%
ROCE(3y)8.03%
ROCE(5y)7.84%
ROICexcg growth 3Y12.09%
ROICexcg growth 5Y12.87%
ROICexc growth 3Y6.53%
ROICexc growth 5Y6.34%
OM growth 3Y3.35%
OM growth 5Y-3.88%
PM growth 3Y6.68%
PM growth 5Y-7.22%
GM growth 3Y7.1%
GM growth 5Y-1.88%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 16.79 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 161.02% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 69.79% | ||
| Profit Quality | 45.56% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.37 |
F-Score6
WACC5.34%
ROIC/WACC1.59
Cap/Depr(3y)151.99%
Cap/Depr(5y)138.41%
Cap/Sales(3y)5.23%
Cap/Sales(5y)5.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.13%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%4.73%
EPS Next Y6.56%
EPS Next 2Y3.98%
EPS Next 3Y4.1%
EPS Next 5Y3.28%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%22.57%
Revenue Next Year-7.73%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.75%
EBIT growth 1Y6.28%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year93.34%
EBIT Next 3Y27.46%
EBIT Next 5Y20.54%
FCF growth 1Y311.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.43%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%