HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.02 EUR
+0.04 (+1.06%)
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 17 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HER had positive earnings in the past year.
HER had a positive operating cash flow in the past year.
Each year in the past 5 years HER has been profitable.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
HER has a Return On Assets of 5.12%. This is amongst the best in the industry. HER outperforms 94.12% of its industry peers.
Looking at the Return On Equity, with a value of 18.73%, HER belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.42%, HER belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HER is in line with the industry average of 5.90%.
The 3 year average ROIC (5.37%) for HER is below the current ROIC(8.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 18.73% | ||
| ROIC | 8.42% |
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's Profit Margin of 3.44% is on the low side compared to the rest of the industry. HER is outperformed by 70.59% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
HER has a worse Operating Margin (5.83%) than 82.35% of its industry peers.
In the last couple of years the Operating Margin of HER has declined.
HER has a Gross Margin of 43.42%. This is comparable to the rest of the industry: HER outperforms 58.82% of its industry peers.
In the last couple of years the Gross Margin of HER has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 3.44% | ||
| GM | 43.42% |
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.
HER has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HER has less shares outstanding
HER has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HER (2.43) is better than 100.00% of its industry peers.
HER has a debt to FCF ratio of 27.04. This is a negative value and a sign of low solvency as HER would need 27.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.04, HER is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that HER has dependencies on debt financing.
HER's Debt to Equity ratio of 1.24 is fine compared to the rest of the industry. HER outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.56
WACC5.39%
2.3 Liquidity
HER has a Current Ratio of 1.19. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.19, HER belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
HER has a Quick Ratio of 1.12. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.12, HER belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.73% over the past year.
Measured over the past 5 years, HER shows a small growth in Earnings Per Share. The EPS has been growing by 5.51% on average per year.
The Revenue has grown by 16.42% in the past year. This is quite good.
HER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.27% yearly.
EPS 1Y (TTM)17.73%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%-0.45%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
3.2 Future
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.26% yearly.
The Revenue is expected to decrease by -1.84% on average over the next years.
EPS Next Y7.54%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
EPS Next 5Y3.26%
Revenue Next Year-12.34%
Revenue Next 2Y-5.67%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.84%
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
The Price/Earnings ratio is 8.04, which indicates a very decent valuation of HER.
82.35% of the companies in the same industry are more expensive than HER, based on the Price/Earnings ratio.
HER is valuated cheaply when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.28, which indicates a correct valuation of HER.
70.59% of the companies in the same industry are more expensive than HER, based on the Price/Forward Earnings ratio.
HER 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 70.59% of the companies listed in the same industry.
64.71% of the companies in the same industry are more expensive than HER, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.41 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
HER's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HER has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)1.46
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, HER has a reasonable but not impressive dividend return.
HER's Dividend Yield is slightly below the industry average, which is at 4.44.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
36.07% of the earnings are spent on dividend by HER. This is a low number and sustainable payout ratio.
The dividend of HER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.07%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
BIT:HER (12/19/2025, 7:00:00 PM)
4.02
+0.04 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners21.83%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.99B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (12.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP36.07%
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)5.74%
PT rev (3m)5.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.71%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.28 | ||
| P/FCF | 30.41 | ||
| P/OCF | 5.15 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.62 |
EPS(TTM)0.5
EY12.44%
EPS(NY)0.33
Fwd EY8.15%
FCF(TTM)0.13
FCFY3.29%
OCF(TTM)0.78
OCFY19.42%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.07
PEG (5Y)1.46
Graham Number5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 18.73% | ||
| ROCE | 12.4% | ||
| ROIC | 8.42% | ||
| ROICexc | 9.39% | ||
| ROICexgc | 29.89% | ||
| OM | 5.83% | ||
| PM (TTM) | 3.44% | ||
| GM | 43.42% | ||
| FCFM | 0.94% |
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%
ROICexgc growth 3Y12.09%
ROICexgc 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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 166.28% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 6.5 | ||
| Cash Conversion | 64.34% | ||
| Profit Quality | 27.18% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.43 |
F-Score6
WACC5.39%
ROIC/WACC1.56
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)17.73%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%-0.45%
EPS Next Y7.54%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
EPS Next 5Y3.26%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
Revenue Next Year-12.34%
Revenue Next 2Y-5.67%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.84%
EBIT growth 1Y5.53%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year91.39%
EBIT Next 3Y26.89%
EBIT Next 5Y20.14%
FCF growth 1Y-67.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.75%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%
HERA SPA / HER.MI FAQ
What is the ChartMill fundamental rating of HERA SPA (HER.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HER.MI.
What is the valuation status of HERA SPA (HER.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to HERA SPA (HER.MI). This can be considered as Fairly Valued.
How profitable is HERA SPA (HER.MI) stock?
HERA SPA (HER.MI) has a profitability rating of 6 / 10.
What is the financial health of HERA SPA (HER.MI) stock?
The financial health rating of HERA SPA (HER.MI) is 6 / 10.
How sustainable is the dividend of HERA SPA (HER.MI) stock?
The dividend rating of HERA SPA (HER.MI) is 5 / 10 and the dividend payout ratio is 36.07%.