ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

22.04 EUR
-0.46 (-2.04%)
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.
  • 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 2025 0 200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.51%, ERG is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
  • ERG's Return On Equity of 7.12% is in line compared to the rest of the industry. ERG outperforms 56.52% of 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.
  • The Average Return On Invested Capital over the past 3 years 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

  • With a decent Profit Margin value of 12.58%, ERG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • ERG's Profit Margin has declined in the last couple of years.
  • ERG has a better Operating Margin (33.98%) than 91.30% of its industry peers.
  • ERG's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ERG (98.78%) is better than 100.00% of its industry peers.
  • ERG's Gross Margin has improved in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
  • Compared to 1 year ago, ERG has less shares outstanding
  • ERG has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ERG has been reduced 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 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

  • ERG has an Altman-Z score of 1.54. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.54, ERG is doing good in the industry, outperforming 65.22% of the companies in the same industry.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 1.31, ERG is in line with its industry, outperforming 43.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Altman-Z 1.54
ROIC/WACC1.2
WACC4.68%
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 has a Current ratio of 1.75. This is comparable to the rest of the industry: ERG outperforms 52.17% of its industry peers.
  • ERG has a Quick Ratio of 1.70. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of ERG (1.70) is comparable to the rest of the industry.
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

  • The earnings per share for ERG have decreased strongly by -50.49% in the last year.
  • The Earnings Per Share has been decreasing by -9.38% on average over the past years.
  • Looking at the last year, ERG shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
  • ERG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.78% yearly.
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

  • Based on estimates for the next years, ERG will show a small growth in Earnings Per Share. The EPS will grow by 6.75% on average per year.
  • ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
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.
  • 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

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4

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.49 indicates a rather expensive valuation of ERG.
  • ERG's Price/Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 69.57% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.18. ERG is around the same levels.
  • A Price/Forward Earnings ratio of 18.26 indicates a rather expensive valuation of ERG.
  • Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than 60.87% of the companies in the same industry.
  • ERG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.96.
Industry RankSector Rank
PE 22.49
Fwd PE 18.26
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 the industry average as 65.22% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than 69.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.29
EV/EBITDA 7.04
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)2.56
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

  • With a Yearly Dividend Yield of 4.47%, ERG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.19, ERG pays a better dividend. On top of this ERG pays more dividend than 86.96% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ERG pays a better dividend.
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.
  • The dividend of ERG is growing around the same rate as the earnings are growing. If this keeps up 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 (4/13/2026, 7:00:00 PM)

22.04

-0.46 (-2.04%)

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 Cap3.31B
Revenue(TTM)1.12B
Net Income(TTM)140.96M
Analysts68
Price Target23.18 (5.17%)
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 22.49
Fwd PE 18.26
P/S 2.96
P/FCF 14.29
P/OCF 8.2
P/B 1.67
P/tB 5.82
EV/EBITDA 7.04
EPS(TTM)0.98
EY4.45%
EPS(NY)1.21
Fwd EY5.48%
FCF(TTM)1.54
FCFY7%
OCF(TTM)2.69
OCFY12.2%
SpS7.45
BVpS13.17
TBVpS3.79
PEG (NY)2.56
PEG (5Y)N/A
Graham Number17.04
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 1.54
F-Score7
WACC4.68%
ROIC/WACC1.2
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.