HERA SPA (HER.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:HER • IT0001250932
4.166 EUR
+0.03 (+0.82%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 18 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER may be a bit undervalued, certainly considering the very reasonable score on growth This makes HER very considerable for value investing!
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.
- In the past 5 years HER has always been profitable.
- Each year in the past 5 years HER had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.12%, HER belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- HER has a better Return On Equity (18.73%) than 88.89% of its industry peers.
- With an excellent Return On Invested Capital value of 8.42%, HER belongs to the best of the industry, outperforming 94.44% 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 5.84%.
- 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
- Looking at the Profit Margin, with a value of 3.44%, HER is doing worse than 77.78% of the companies in the same industry.
- HER's Profit Margin has declined in the last couple of years.
- HER has a worse Operating Margin (5.83%) than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of HER has declined.
- With a decent Gross Margin value of 43.42%, HER is doing good in the industry, outperforming 61.11% 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 | 5.83% | ||
| 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
- HER has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- HER has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for HER has been reduced compared to 5 years ago.
- HER has a worse debt/assets ratio than last year.
2.2 Solvency
- HER has an Altman-Z score of 2.44. 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.
- Looking at the Altman-Z score, with a value of 2.44, HER belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Debt to FCF ratio of HER is 27.04, which is on the high side as it means it would take HER, 27.04 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 27.04, HER is doing good in the industry, outperforming 72.22% 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 has a Debt to Equity ratio of 1.24. This is in the better half of the industry: HER outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.53
WACC5.49%
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 88.89% 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.
- HER's Quick ratio of 1.12 is amongst the best of the industry. HER outperforms 94.44% of its industry peers.
| 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.
- 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 16.42% in the last year.
- 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)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
- The Earnings Per Share is expected to grow by 3.26% on average over the next years.
- HER is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.84% yearly.
EPS Next Y7.79%
EPS Next 2Y4.51%
EPS Next 3Y4.54%
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
- 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.
- 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
- With a Price/Earnings ratio of 8.33, the valuation of HER can be described as very reasonable.
- 88.89% of the companies in the same industry are more expensive than HER, based on the Price/Earnings ratio.
- HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- Based on the Price/Forward Earnings ratio of 12.68, the valuation of HER can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HER indicates a rather cheap valuation: HER is cheaper than 88.89% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (25.57), we can say HER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than HER, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.52 | ||
| EV/EBITDA | 5.75 |
4.3 Compensation for Growth
- The 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)1.51
EPS Next 2Y4.51%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- HER has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
- HER's Dividend Yield is slightly below the industry average, which is at 4.30.
- HER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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.
- HER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.07%
EPS Next 2Y4.51%
EPS Next 3Y4.54%
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 for HER stock?
ChartMill assigns a valuation rating of 7 / 10 to HERA SPA (HER.MI). This can be considered as Undervalued.
How profitable is HERA SPA (HER.MI) stock?
HERA SPA (HER.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for HER stock?
The financial health rating of HERA SPA (HER.MI) is 6 / 10.
Is the dividend of HERA SPA sustainable?
The dividend rating of HERA SPA (HER.MI) is 5 / 10 and the dividend payout ratio is 36.07%.