HERA SPA (HER.MI) Stock Fundamental Analysis
BIT:HER - Euronext Milan - IT0001250932 - Common Stock - Currency: EUR
Overall HER gets a fundamental rating of 5 out of 10. We evaluated HER against 12 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HER was profitable.
HER had a positive operating cash flow in the past year.
In the past 5 years HER has always been profitable.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.62%, HER belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
HER has a Return On Equity of 18.36%. This is in the better half of the industry: HER outperforms 75.00% of its industry peers.
HER's Return On Invested Capital of 8.50% is amongst the best of the industry. HER outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HER is in line with the industry average of 6.57%.
The 3 year average ROIC (5.37%) for HER is below the current ROIC(8.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 18.36% | ||
| ROIC | 8.5% |
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
With a Profit Margin value of 3.59%, HER is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
HER's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.19%, HER is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
HER's Operating Margin has declined in the last couple of years.
HER has a Gross Margin of 44.53%. This is in the better half of the industry: HER outperforms 66.67% of its industry peers.
HER's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.19% | ||
| PM (TTM) | 3.59% | ||
| GM | 44.53% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HER is creating some value.
The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
HER has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.14 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HER (2.14) is better than 100.00% of its industry peers.
HER has a debt to FCF ratio of 36.37. This is a negative value and a sign of low solvency as HER would need 36.37 years to pay back of all of its debts.
The Debt to FCF ratio of HER (36.37) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that HER has dependencies on debt financing.
HER has a Debt to Equity ratio of 1.22. This is in the better half of the industry: HER outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 36.37 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.6
WACC5.3%
2.3 Liquidity
A Current Ratio of 1.17 indicates that HER should not have too much problems paying its short term obligations.
HER's Current ratio of 1.17 is fine compared to the rest of the industry. HER outperforms 75.00% of its industry peers.
HER has a Quick Ratio of 1.16. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
HER's Quick ratio of 1.16 is amongst the best of the industry. HER outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.58% 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 decreased by -4.70% in the past year.
The Revenue has been growing by 13.27% on average over the past years. This is quite good.
EPS 1Y (TTM)16.58%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%6.75%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%31.51%
3.2 Future
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.32% yearly.
Based on estimates for the next years, HER will show a decrease in Revenue. The Revenue will decrease by -1.72% on average per year.
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5Y3.32%
Revenue Next Year-7.64%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.72%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.56, which indicates a rather cheap valuation of HER.
Based on the Price/Earnings ratio, HER is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
HER is valuated cheaply when we compare the Price/Earnings ratio to 26.93, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.58 indicates a reasonable valuation of HER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HER is on the same level as its industry peers.
HER is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HER indicates a slightly more expensive valuation: HER is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.5 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
The 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)1.48
PEG (5Y)1.37
EPS Next 2Y3.09%
EPS Next 3Y3.01%
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 5.07. 83.33% of the companies listed in the same industry pay a better dividend than HER!
Compared to an average S&P500 Dividend Yield of 2.39, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
On average, the dividend of HER grows each year by 9.46%, which is quite nice.
Dividend Growth(5Y)9.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HER pays out 34.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of HER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.91%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
BIT:HER (8/14/2025, 7:00:00 PM)
3.702
+0.05 (+1.37%)
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 Cap5.51B
Analysts75.56
Price Target4.3 (16.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP34.91%
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)2.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 11.58 | ||
| P/S | 0.28 | ||
| P/FCF | 33.5 | ||
| P/OCF | 5.2 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.28 |
EPS(TTM)0.49
EY13.24%
EPS(NY)0.32
Fwd EY8.63%
FCF(TTM)0.11
FCFY2.98%
OCF(TTM)0.71
OCFY19.22%
SpS13.33
BVpS2.61
TBVpS-1.37
PEG (NY)1.48
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 18.36% | ||
| ROCE | 12.51% | ||
| ROIC | 8.5% | ||
| ROICexc | 10.57% | ||
| ROICexgc | 42.24% | ||
| OM | 6.19% | ||
| PM (TTM) | 3.59% | ||
| GM | 44.53% | ||
| FCFM | 0.83% |
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)22.5%
ROICexgc(5y)21.03%
ROCE(3y)8.03%
ROCE(5y)7.84%
ROICexcg growth 3Y12.18%
ROICexcg growth 5Y12.92%
ROICexc growth 3Y6.55%
ROICexc growth 5Y6.36%
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 Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 36.37 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 157.45% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 58.91% | ||
| Profit Quality | 23.1% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.14 |
F-Score6
WACC5.3%
ROIC/WACC1.6
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)16.58%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%6.75%
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5Y3.32%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%31.51%
Revenue Next Year-7.64%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.72%
EBIT growth 1Y-7.1%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year96.01%
EBIT Next 3Y27.74%
EBIT Next 5Y20.75%
FCF growth 1Y129.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.15%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%