ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

21.9 EUR
-0.28 (-1.26%)
Last:

This ERG.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ERG.MI Profitability Analysis

1.1 Basic Checks

  • In the past year ERG was profitable.
  • In the past year ERG had a positive cash flow from operations.
  • Each year in the past 5 years ERG has been profitable.
  • In the past 5 years ERG always reported a positive cash flow from operatings.
ERG.MI Yearly Net Income VS EBIT VS OCF VS FCFERG.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of ERG (2.51%) is better than 65.22% of its industry peers.
  • ERG has a Return On Equity (7.12%) which is in line with its industry peers.
  • With a decent Return On Invested Capital value of 5.63%, ERG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ERG is in line with the industry average of 5.01%.
  • The 3 year average ROIC (4.15%) for ERG is below the current ROIC(5.63%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.51%
ROE 7.12%
ROIC 5.63%
ROA(3y)2.52%
ROA(5y)3.54%
ROE(3y)6.79%
ROE(5y)10%
ROIC(3y)4.15%
ROIC(5y)4.13%
ERG.MI Yearly ROA, ROE, ROICERG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ERG has a Profit Margin of 12.58%. This is in the better half of the industry: ERG outperforms 78.26% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has declined.
  • Looking at the Operating Margin, with a value of 33.98%, ERG belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERG has grown nicely.
  • ERG has a better Gross Margin (98.78%) than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of ERG has grown nicely.
Industry RankSector Rank
OM 33.98%
PM (TTM) 12.58%
GM 98.78%
OM growth 3Y-5.7%
OM growth 5Y13.74%
PM growth 3Y-44.31%
PM growth 5Y-7.07%
GM growth 3Y0.29%
GM growth 5Y8.06%
ERG.MI Yearly Profit, Operating, Gross MarginsERG.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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5

2. ERG.MI Health Analysis

2.1 Basic Checks

  • ERG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • ERG has less shares outstanding than it did 1 year ago.
  • ERG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ERG has an improved debt to assets ratio.
ERG.MI Yearly Shares OutstandingERG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
ERG.MI Yearly Total Debt VS Total AssetsERG.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 1.53, we must say that ERG is in the distress zone and has some risk of bankruptcy.
  • ERG has a Altman-Z score of 1.53. This is in the better half of the industry: ERG outperforms 65.22% of its industry peers.
  • The Debt to FCF ratio of ERG is 11.32, which is on the high side as it means it would take ERG, 11.32 years of fcf income to pay off all of its debts.
  • ERG's Debt to FCF ratio of 11.32 is fine compared to the rest of the industry. ERG outperforms 78.26% of its industry peers.
  • ERG has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
  • ERG has a Debt to Equity ratio (1.31) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Altman-Z 1.53
ROIC/WACC1.21
WACC4.67%
ERG.MI Yearly LT Debt VS Equity VS FCFERG.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG's Current ratio of 1.75 is in line compared to the rest of the industry. ERG outperforms 52.17% of its industry peers.
  • A Quick Ratio of 1.70 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG has a Quick ratio (1.70) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.7
ERG.MI Yearly Current Assets VS Current LiabilitesERG.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. ERG.MI Growth Analysis

3.1 Past

  • ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.49%.
  • ERG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.38% yearly.
  • ERG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
  • Measured over the past years, ERG shows a decrease in Revenue. The Revenue has been decreasing by -2.78% on average per year.
EPS 1Y (TTM)-50.49%
EPS 3Y-44.18%
EPS 5Y-9.38%
EPS Q2Q%-119.92%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.24%
Revenue growth 5Y-2.78%
Sales Q2Q%2.66%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.75% on average over the next years.
  • Based on estimates for the next years, ERG will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y8.78%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
EPS Next 5YN/A
Revenue Next Year1.22%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
Revenue Next 5YN/A

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 accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ERG.MI Yearly Revenue VS EstimatesERG.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ERG.MI Yearly EPS VS EstimatesERG.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

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4

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.35, which indicates a rather expensive current valuation of ERG.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 69.57% of the companies listed in the same industry.
  • ERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
  • A Price/Forward Earnings ratio of 18.14 indicates a rather expensive valuation of ERG.
  • 60.87% of the companies in the same industry are more expensive than ERG, based on the Price/Forward Earnings ratio.
  • ERG is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.35
Fwd PE 18.14
ERG.MI Price Earnings VS Forward Price EarningsERG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 65.22% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.2
EV/EBITDA 6.92
ERG.MI Per share dataERG.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)2.55
PEG (5Y)N/A
EPS Next 2Y5.69%
EPS Next 3Y6.75%

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7

5. ERG.MI Dividend Analysis

5.1 Amount

  • ERG has a Yearly Dividend Yield of 4.47%, which is a nice return.
  • ERG's Dividend Yield is rather good when compared to the industry average which is at 2.19. ERG pays more dividend than 86.96% of the companies in the same industry.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.47%

5.2 History

  • The dividend of ERG is nicely growing with an annual growth rate of 6.07%!
Dividend Growth(5Y)6.07%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 107.37% of the earnings are spent on dividend by ERG. This is not a sustainable payout ratio.
  • ERG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP107.37%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
ERG.MI Yearly Income VS Free CF VS DividendERG.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M
ERG.MI Dividend Payout.ERG.MI Dividend Payout, showing the Payout Ratio.ERG.MI Dividend Payout.PayoutRetained Earnings

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ERG.MI Fundamentals: All Metrics, Ratios and Statistics

ERG SPA

BIT:ERG (4/15/2026, 7:00:00 PM)

21.9

-0.28 (-1.26%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-09
Earnings (Next)05-13
Inst Owners18.59%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.29B
Revenue(TTM)1.12B
Net Income(TTM)140.96M
Analysts68
Price Target23.18 (5.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.47%
Yearly Dividend1.04
Dividend Growth(5Y)6.07%
DP107.37%
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)-4.92%
PT rev (3m)-4.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.97%
EPS NY rev (3m)-16.89%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.21%
Revenue NY rev (3m)-6.49%
Valuation
Industry RankSector Rank
PE 22.35
Fwd PE 18.14
P/S 2.94
P/FCF 14.2
P/OCF 8.15
P/B 1.66
P/tB 5.78
EV/EBITDA 6.92
EPS(TTM)0.98
EY4.47%
EPS(NY)1.21
Fwd EY5.51%
FCF(TTM)1.54
FCFY7.04%
OCF(TTM)2.69
OCFY12.28%
SpS7.45
BVpS13.17
TBVpS3.79
PEG (NY)2.55
PEG (5Y)N/A
Graham Number17.0429 (-22.18%)
Profitability
Industry RankSector Rank
ROA 2.51%
ROE 7.12%
ROCE 7.39%
ROIC 5.63%
ROICexc 6.23%
ROICexgc 8.77%
OM 33.98%
PM (TTM) 12.58%
GM 98.78%
FCFM 20.69%
ROA(3y)2.52%
ROA(5y)3.54%
ROE(3y)6.79%
ROE(5y)10%
ROIC(3y)4.15%
ROIC(5y)4.13%
ROICexc(3y)4.88%
ROICexc(5y)4.95%
ROICexgc(3y)7.29%
ROICexgc(5y)7.37%
ROCE(3y)5.4%
ROCE(5y)5.52%
ROICexgc growth 3Y-16.45%
ROICexgc growth 5Y3.74%
ROICexc growth 3Y-13.37%
ROICexc growth 5Y3.89%
OM growth 3Y-5.7%
OM growth 5Y13.74%
PM growth 3Y-44.31%
PM growth 5Y-7.07%
GM growth 3Y0.29%
GM growth 5Y8.06%
F-Score7
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Debt/EBITDA 3.52
Cap/Depr 48.67%
Cap/Sales 15.37%
Interest Coverage 13.24
Cash Conversion 55%
Profit Quality 164.49%
Current Ratio 1.75
Quick Ratio 1.7
Altman-Z 1.53
F-Score7
WACC4.67%
ROIC/WACC1.21
Cap/Depr(3y)89.61%
Cap/Depr(5y)100.44%
Cap/Sales(3y)32.12%
Cap/Sales(5y)36.81%
Profit Quality(3y)271.17%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50.49%
EPS 3Y-44.18%
EPS 5Y-9.38%
EPS Q2Q%-119.92%
EPS Next Y8.78%
EPS Next 2Y5.69%
EPS Next 3Y6.75%
EPS Next 5YN/A
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.24%
Revenue growth 5Y-2.78%
Sales Q2Q%2.66%
Revenue Next Year1.22%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
Revenue Next 5YN/A
EBIT growth 1Y-7.5%
EBIT growth 3Y-5.93%
EBIT growth 5Y10.58%
EBIT Next Year104.29%
EBIT Next 3Y30.29%
EBIT Next 5YN/A
FCF growth 1Y-7.35%
FCF growth 3Y23.1%
FCF growth 5Y-4.9%
OCF growth 1Y-16.53%
OCF growth 3Y-4.15%
OCF growth 5Y-0.32%

ERG SPA / ERG.MI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ERG SPA (ERG.MI) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ERG.MI.


Can you provide the valuation status for ERG SPA?

ChartMill assigns a valuation rating of 4 / 10 to ERG SPA (ERG.MI). This can be considered as Fairly Valued.


How profitable is ERG SPA (ERG.MI) stock?

ERG SPA (ERG.MI) has a profitability rating of 7 / 10.


How financially healthy is ERG SPA?

The financial health rating of ERG SPA (ERG.MI) is 5 / 10.


What is the earnings growth outlook for ERG SPA?

The Earnings per Share (EPS) of ERG SPA (ERG.MI) is expected to grow by 8.78% in the next year.