ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

24.4 EUR
+0.32 (+1.33%)
Last: Mar 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

5

Overall ERG gets a fundamental rating of 5 out of 10. We evaluated ERG against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG scores excellent on profitability, but there are some minor concerns on its financial health. ERG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

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.
  • ERG had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ERG had a positive operating cash flow.
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 0 200M 400M 600M 800M

1.2 Ratios

  • ERG has a Return On Assets of 3.69%. This is in the better half of the industry: ERG outperforms 75.00% of its industry peers.
  • The Return On Equity of ERG (10.40%) is better than 80.00% of its industry peers.
  • With a decent Return On Invested Capital value of 5.33%, ERG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 4.81%.
  • The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.33%), indicating increased profibility in the last year.
Industry RankSector 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%
ERG.MI Yearly ROA, ROE, ROICERG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • ERG's Profit Margin of 19.28% is amongst the best of the industry. ERG outperforms 85.00% 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 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of ERG has grown nicely.
  • ERG has a Gross Margin of 98.63%. This is amongst the best in the industry. ERG outperforms 100.00% of its industry peers.
  • ERG's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. ERG.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
  • The number of shares outstanding for ERG has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ERG has less shares outstanding
  • The debt/assets ratio for ERG is higher compared to a year ago.
ERG.MI Yearly Shares OutstandingERG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B

2.2 Solvency

  • ERG has an Altman-Z score of 1.55. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
  • ERG's Altman-Z score of 1.55 is fine compared to the rest of the industry. ERG outperforms 65.00% of its industry peers.
  • ERG has a debt to FCF ratio of 9.46. This is a negative value and a sign of low solvency as ERG would need 9.46 years to pay back of all of its debts.
  • ERG has a Debt to FCF ratio of 9.46. This is in the better half of the industry: ERG outperforms 80.00% 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.
  • With a Debt to Equity ratio value of 1.30, ERG is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.55
ROIC/WACC1.09
WACC4.87%
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 0 500M 1B 1.5B 2B

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.
  • ERG's Current ratio of 1.71 is in line compared to the rest of the industry. ERG outperforms 45.00% of its industry peers.
  • ERG has a Quick Ratio of 1.65. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
  • ERG has a Quick ratio of 1.65. This is comparable to the rest of the industry: ERG outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.65
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 500M 1B 1.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 -36.52%.
  • The Earnings Per Share has been growing by 43.27% on average over the past years. This is a very strong growth
  • The Revenue has decreased by -3.11% in the past year.
  • Measured over the past years, ERG shows a decrease in Revenue. The Revenue has been decreasing by -6.29% on average per year.
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

  • The Earnings Per Share is expected to decrease by -1.76% on average over the next years.
  • ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y-9.19%
EPS Next 2Y3.83%
EPS Next 3Y2.4%
EPS Next 5Y-1.76%
Revenue Next Year5.18%
Revenue Next 2Y6.12%
Revenue Next 3Y4.78%
Revenue Next 5Y5.19%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

5

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 16.94 indicates a correct 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 80.00% of the companies listed in the same industry.
  • ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • ERG is valuated correctly with a Price/Forward Earnings ratio of 16.85.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 70.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, ERG is valued a bit cheaper.
Industry RankSector Rank
PE 16.94
Fwd PE 16.85
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

  • ERG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • ERG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERG is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.94
EV/EBITDA 8.27
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

  • ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y3.83%
EPS Next 3Y2.4%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ERG.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.15%, ERG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.32, ERG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, ERG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.15%

5.2 History

  • The dividend of ERG is nicely growing with an annual growth rate of 6.57%!
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 2Y3.83%
EPS Next 3Y2.4%
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 0 200M 400M
ERG.MI Dividend Payout.ERG.MI Dividend Payout, showing the Payout Ratio.ERG.MI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

ERG.MI Fundamentals: All Metrics, Ratios and Statistics

ERG SPA

BIT:ERG (3/6/2026, 7:00:00 PM)

24.4

+0.32 (+1.33%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14
Earnings (Next)03-09
Inst Owners18.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.67B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts72
Price Target24.38 (-0.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.15%
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)0.33%
PT rev (3m)1.44%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-2.26%
Valuation
Industry RankSector Rank
PE 16.94
Fwd PE 16.85
P/S 3.36
P/FCF 12.94
P/OCF 7.92
P/B 1.81
P/tB 7.46
EV/EBITDA 8.27
EPS(TTM)1.44
EY5.9%
EPS(NY)1.45
Fwd EY5.94%
FCF(TTM)1.89
FCFY7.73%
OCF(TTM)3.08
OCFY12.63%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.39
Graham Number20.88
Profitability
Industry RankSector 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 RankSector 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 1.55
F-Score6
WACC4.87%
ROIC/WACC1.09
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-9.19%
EPS Next 2Y3.83%
EPS Next 3Y2.4%
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 Year5.18%
Revenue Next 2Y6.12%
Revenue Next 3Y4.78%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year94.32%
EBIT Next 3Y29.58%
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 5 / 10 to ERG.MI.


Can you provide the valuation status for ERG SPA?

ChartMill assigns a valuation rating of 5 / 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 4 / 10.


How sustainable is the dividend of ERG SPA (ERG.MI) stock?

The dividend rating of ERG SPA (ERG.MI) is 6 / 10 and the dividend payout ratio is 72.21%.