ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ERG - IT0001157020 - Common Stock
22.5 EUR
-0.16 (-0.71%)
We assign a fundamental rating of 6 out of 10 to ERG. ERG was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. While ERG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ERG is valued correctly, but it does not seem to be growing. Finally ERG also has an excellent dividend rating. With these ratings, ERG could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- ERG had positive earnings in the past year.
- In the past year ERG had a positive cash flow from operations.
- In the past 5 years ERG has always been profitable.
- In the past 5 years ERG always reported a positive cash flow from operatings.
1.2 Ratios
- ERG has a better Return On Assets (3.69%) than 71.43% of its industry peers.
- Looking at the Return On Equity, with a value of 10.40%, ERG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- ERG has a Return On Invested Capital of 5.33%. This is in the better half of the industry: ERG outperforms 71.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ERG is in line with the industry average of 5.69%.
- The last Return On Invested Capital (5.33%) for ERG is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 10.4% | ||
| ROIC | 5.33% |
ROA(3y)4.55%
ROA(5y)3.78%
ROE(3y)11.87%
ROE(5y)10.57%
ROIC(3y)4.72%
ROIC(5y)3.97%
1.3 Margins
- ERG's Profit Margin of 19.28% is amongst the best of the industry. ERG outperforms 80.95% of its industry peers.
- ERG's Profit Margin has improved in the last couple of years.
- ERG has a Operating Margin of 33.37%. This is amongst the best in the industry. ERG outperforms 90.48% of its industry peers.
- In the last couple of years the Operating Margin of ERG has grown nicely.
- Looking at the Gross Margin, with a value of 98.63%, ERG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of ERG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.37% | ||
| PM (TTM) | 19.28% | ||
| GM | 98.63% |
OM growth 3Y4.11%
OM growth 5Y13.88%
PM growth 3Y-4.11%
PM growth 5Y52.35%
GM growth 3Y-0.12%
GM growth 5Y6.64%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERG is still creating some value.
- The number of shares outstanding for ERG has been reduced compared to 1 year ago.
- ERG has less shares outstanding than it did 5 years ago.
- ERG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.52, we must say that ERG is in the distress zone and has some risk of bankruptcy.
- ERG has a Altman-Z score of 1.52. This is in the better half of the industry: ERG outperforms 61.90% of its industry peers.
- The Debt to FCF ratio of ERG is 9.46, which is on the high side as it means it would take ERG, 9.46 years of fcf income to pay off all of its debts.
- ERG has a Debt to FCF ratio of 9.46. This is amongst the best in the industry. ERG outperforms 85.71% of its industry peers.
- A Debt/Equity ratio of 1.30 is on the high side and indicates that ERG has dependencies on debt financing.
- ERG has a Debt to Equity ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.12
WACC4.77%
2.3 Liquidity
- ERG has a Current Ratio of 1.71. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.71, ERG is in line with its industry, outperforming 57.14% of the companies in the same industry.
- A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
- ERG has a better Quick ratio (1.65) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
- ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.52%.
- Measured over the past years, ERG shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.27% on average per year.
- Looking at the last year, ERG shows a decrease in Revenue. The Revenue has decreased by -3.11% in the last year.
- The Revenue has been decreasing by -6.29% on average over the past years.
EPS 1Y (TTM)-36.52%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-39.18%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-0.99%
3.2 Future
- Based on estimates for the next years, ERG will show a decrease in Earnings Per Share. The EPS will decrease by -1.76% on average per year.
- The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
EPS Next 5Y-1.76%
Revenue Next Year6.13%
Revenue Next 2Y6.32%
Revenue Next 3Y4.91%
Revenue Next 5Y5.19%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- ERG is valuated correctly with a Price/Earnings ratio of 15.63.
- ERG's Price/Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 76.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, ERG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.49, the valuation of ERG can be described as correct.
- 66.67% of the companies in the same industry are more expensive than ERG, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ERG to the average of the S&P500 Index (24.29), we can say ERG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 61.90% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ERG is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
- ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y3.98%
EPS Next 3Y3.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.47%, ERG is a good candidate for dividend investing.
- ERG's Dividend Yield is rather good when compared to the industry average which is at 2.25. ERG pays more dividend than 90.48% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
- On average, the dividend of ERG grows each year by 6.57%, which is quite nice.
Dividend Growth(5Y)6.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 72.21% of the earnings are spent on dividend by ERG. This is not a sustainable payout ratio.
- The Dividend Rate of ERG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP72.21%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
BIT:ERG (1/19/2026, 3:06:29 PM)
22.5
-0.16 (-0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14 2025-11-14
Earnings (Next)03-09 2026-03-09/amc
Inst Owners19.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.38B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.3 (8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend1.04
Dividend Growth(5Y)6.57%
DP72.21%
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)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.49 | ||
| P/S | 3.1 | ||
| P/FCF | 11.93 | ||
| P/OCF | 7.3 | ||
| P/B | 1.67 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)1.44
EY6.4%
EPS(NY)1.45
Fwd EY6.46%
FCF(TTM)1.89
FCFY8.38%
OCF(TTM)3.08
OCFY13.7%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.36
Graham Number20.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 10.4% | ||
| ROCE | 6.94% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 8.48% | ||
| OM | 33.37% | ||
| PM (TTM) | 19.28% | ||
| GM | 98.63% | ||
| FCFM | 25.97% |
ROA(3y)4.55%
ROA(5y)3.78%
ROE(3y)11.87%
ROE(5y)10.57%
ROIC(3y)4.72%
ROIC(5y)3.97%
ROICexc(3y)5.64%
ROICexc(5y)4.82%
ROICexgc(3y)8.71%
ROICexgc(5y)7.19%
ROCE(3y)6.04%
ROCE(5y)5.28%
ROICexgc growth 3Y13.65%
ROICexgc growth 5Y3.76%
ROICexc growth 3Y7.92%
ROICexc growth 5Y2.32%
OM growth 3Y4.11%
OM growth 5Y13.88%
PM growth 3Y-4.11%
PM growth 5Y52.35%
GM growth 3Y-0.12%
GM growth 5Y6.64%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 61.02% | ||
| Cap/Sales | 16.49% | ||
| Interest Coverage | 17.92 | ||
| Cash Conversion | 70.3% | ||
| Profit Quality | 134.72% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.52 |
F-Score6
WACC4.77%
ROIC/WACC1.12
Cap/Depr(3y)113.43%
Cap/Depr(5y)97.89%
Cap/Sales(3y)39.21%
Cap/Sales(5y)34.75%
Profit Quality(3y)163.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.52%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%-39.18%
EPS Next Y-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%-0.99%
Revenue Next Year6.13%
Revenue Next 2Y6.32%
Revenue Next 3Y4.91%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.28%
EBIT Next 3Y29.6%
EBIT Next 5Y21.48%
FCF growth 1Y218.17%
FCF growth 3YN/A
FCF growth 5Y-11.63%
OCF growth 1Y7.02%
OCF growth 3Y39.84%
OCF growth 5Y-2.18%
ERG SPA / ERG.MI FAQ
What is the ChartMill fundamental rating of ERG SPA (ERG.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERG.MI.
Can you provide the valuation status for ERG SPA?
ChartMill assigns a valuation rating of 6 / 10 to ERG SPA (ERG.MI). This can be considered as Fairly Valued.
What is the profitability of ERG stock?
ERG SPA (ERG.MI) has a profitability rating of 8 / 10.
What is the financial health of ERG SPA (ERG.MI) stock?
The financial health rating of ERG SPA (ERG.MI) is 5 / 10.
How sustainable is the dividend of ERG SPA (ERG.MI) stock?
The dividend rating of ERG SPA (ERG.MI) is 7 / 10 and the dividend payout ratio is 72.21%.