HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.124 EUR
-0.01 (-0.15%)
HER gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 17 industry peers in the Multi-Utilities industry. HER has only an average score on both its financial health and profitability. HER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HER was profitable.
In the past year HER had a positive cash flow from operations.
HER had positive earnings in each of the past 5 years.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
HER has a better Return On Assets (5.12%) than 94.12% of its industry peers.
HER has a better Return On Equity (18.73%) than 88.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.42%, HER belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
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 6.39%.
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
The Profit Margin of HER (3.44%) is worse than 76.47% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
HER's Operating Margin of 5.83% is on the low side compared to the rest of the industry. HER is outperformed by 88.24% 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 in the better half of the industry: HER outperforms 64.71% 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
HER has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HER has less shares outstanding
Compared to 1 year ago, HER has a worse debt to assets ratio.
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.
HER has a better Altman-Z score (2.44) 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.
HER has a Debt to FCF ratio of 27.04. This is in the better half of the industry: HER outperforms 64.71% of its industry peers.
HER has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HER has a Debt to Equity ratio of 1.24. This is in the better half of the industry: HER outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.55
WACC5.42%
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.
HER has a better Current ratio (1.19) than 88.24% of its industry peers.
A Quick Ratio of 1.12 indicates that HER should not have too much problems paying its short term obligations.
HER has a Quick ratio of 1.12. This is amongst the best in the industry. HER outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
HER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.73%, which is quite good.
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.
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.
Based on estimates for the next years, HER will show a decrease in Revenue. The Revenue will decrease by -1.84% on average per year.
EPS Next Y6.78%
EPS Next 2Y4.31%
EPS Next 3Y4.47%
EPS Next 5Y3.26%
Revenue Next Year-8.7%
Revenue Next 2Y-3.61%
Revenue Next 3Y-1.6%
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 8.25, which indicates a very decent valuation of HER.
Based on the Price/Earnings ratio, HER is valued cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, HER is valued rather cheaply.
HER is valuated correctly with a Price/Forward Earnings ratio of 12.60.
HER's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HER is cheaper than 64.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (36.59), we can say HER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HER is on the same level as its industry peers.
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 | 31.2 | ||
| EV/EBITDA | 5.74 |
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)1.22
PEG (5Y)1.5
EPS Next 2Y4.31%
EPS Next 3Y4.47%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
HER's Dividend Yield is slightly below the industry average, which is at 4.55.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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
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 2Y4.31%
EPS Next 3Y4.47%
BIT:HER (11/28/2025, 7:00:00 PM)
4.124
-0.01 (-0.15%)
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 Cap6.14B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts75.56
Price Target4.37 (5.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)2.39%
PT rev (3m)2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.21%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.29 | ||
| P/FCF | 31.2 | ||
| P/OCF | 5.28 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.5
EY12.12%
EPS(NY)0.33
Fwd EY7.94%
FCF(TTM)0.13
FCFY3.21%
OCF(TTM)0.78
OCFY18.93%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.22
PEG (5Y)1.5
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 | 2.44 |
F-Score6
WACC5.42%
ROIC/WACC1.55
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 Y6.78%
EPS Next 2Y4.31%
EPS Next 3Y4.47%
EPS Next 5Y3.26%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
Revenue Next Year-8.7%
Revenue Next 2Y-3.61%
Revenue Next 3Y-1.6%
Revenue Next 5Y-1.84%
EBIT growth 1Y5.53%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year93.34%
EBIT Next 3Y27.46%
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 5 / 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 4 / 10 and the dividend payout ratio is 36.07%.