HERA SPA (HER.MI) Stock Fundamental Analysis
BIT:HER - IT0001250932 - Common Stock
3.668 EUR
+0.04 (+1.1%)
HER gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Multi-Utilities industry. HER has only an average score on both its financial health and profitability. HER may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, HER could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
HER had positive earnings in the past year.
In the past year HER had a positive cash flow from operations.
HER had positive earnings in each of the past 5 years.
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.
With an excellent Return On Equity value of 19.06%, HER belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Invested Capital of HER (8.49%) is better than 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HER is in line with the industry average of 6.66%.
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 worse Profit Margin (3.43%) than 69.23% of its industry peers.
HER's Profit Margin has declined in the last couple of years.
The Operating Margin of HER (5.81%) is worse than 84.62% of its industry peers.
HER's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 43.17%, HER is doing good in the industry, outperforming 69.23% of the companies in the same industry.
HER's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, HER has about the same amount of shares outstanding.
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
HER has an Altman-Z score of 2.36. 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 has a Altman-Z score of 2.36. This is amongst the best in the industry. HER outperforms 100.00% of its industry peers.
HER has a debt to FCF ratio of 16.79. This is a negative value and a sign of low solvency as HER would need 16.79 years to pay back of all of its debts.
HER has a Debt to FCF ratio of 16.79. This is in the better half of the industry: HER outperforms 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.
HER has a better Debt to Equity ratio (1.27) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 16.79 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.61
WACC5.27%
2.3 Liquidity
A Current Ratio of 1.16 indicates that HER should not have too much problems paying its short term obligations.
HER has a better Current ratio (1.16) 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.
With an excellent Quick ratio value of 1.13, HER belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| 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.
HER shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.77%.
Measured over the past years, HER shows a quite strong growth in Revenue. The Revenue has been growing by 13.27% on average per year.
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
Based on estimates for the next years, HER will show a small growth in Earnings Per Share. The EPS will grow by 3.14% on average per year.
The Revenue is expected to decrease by -1.89% on average over the next years.
EPS Next Y7.59%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
EPS Next 5Y3.14%
Revenue Next Year-7.73%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 7.34, the valuation of HER can be described as very cheap.
Based on the Price/Earnings ratio, HER is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, HER is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.10, the valuation of HER can be described as very reasonable.
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 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
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 | 16.57 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
HER's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HER has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)1.33
EPS Next 2Y4.82%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 4.06%, which is a nice return.
With a Dividend Yield of 4.06, HER pays less dividend than the industry average, which is at 5.43. 84.62% of the companies listed in the same industry pay a better dividend than HER!
Compared to an average S&P500 Dividend Yield of 2.32, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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.
The dividend of HER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.25%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
BIT:HER (9/4/2025, 5:35:30 PM)
3.668
+0.04 (+1.1%)
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 Cap5.46B
Analysts75.56
Price Target4.26 (16.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)-0.95%
PT rev (3m)1.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.36%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 11.1 | ||
| P/S | 0.26 | ||
| P/FCF | 16.57 | ||
| P/OCF | 4.34 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.5
EY13.63%
EPS(NY)0.33
Fwd EY9.01%
FCF(TTM)0.22
FCFY6.03%
OCF(TTM)0.85
OCFY23.05%
SpS14.17
BVpS2.55
TBVpS-1.48
PEG (NY)0.97
PEG (5Y)1.33
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 | 2.36 |
F-Score6
WACC5.27%
ROIC/WACC1.61
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 Y7.59%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
EPS Next 5Y3.14%
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-1.89%
EBIT growth 1Y6.28%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year96.01%
EBIT Next 3Y27.74%
EBIT Next 5Y20.38%
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%