ERG SPA (ERG.MI) Stock Fundamental Analysis

BIT:ERG • IT0001157020

21.86 EUR
-1.06 (-4.62%)
Last: Feb 12, 2026, 05:35 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ERG. ERG was compared to 23 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG has an excellent profitability rating, 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. Finally ERG also has an excellent dividend rating. With these ratings, ERG could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

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.
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

  • Looking at the Return On Assets, with a value of 3.69%, ERG is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
  • With a decent Return On Equity value of 10.40%, ERG is doing good in the industry, outperforming 69.57% of the companies in the same industry.
  • The Return On Invested Capital of ERG (5.33%) is better than 78.26% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 5.27%.
  • 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

  • The Profit Margin of ERG (19.28%) is better than 86.96% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has grown nicely.
  • The Operating Margin of ERG (33.37%) is better than 91.30% of its industry peers.
  • ERG's Operating Margin has improved in the last couple of years.
  • 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 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

5

2. Health

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.
  • 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.
  • Compared to 1 year ago, ERG has a worse debt to assets ratio.
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 1.53. This is a bad value and indicates that ERG is not financially healthy and even has some risk of bankruptcy.
  • ERG has a better Altman-Z score (1.53) than 65.22% 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 better Debt to FCF ratio (9.46) than 82.61% of its industry peers.
  • ERG has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.30, ERG perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.53
ROIC/WACC1.11
WACC4.79%
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

  • A Current Ratio of 1.71 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG has a Current ratio of 1.71. This is comparable to the rest of the industry: ERG outperforms 56.52% of its industry peers.
  • A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG's Quick ratio of 1.65 is fine compared to the rest of the industry. ERG outperforms 60.87% 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

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

3

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%.
  • 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.
  • 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

  • ERG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
  • Based on estimates for the next years, ERG will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y-9.19%
EPS Next 2Y3.83%
EPS Next 3Y2.4%
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.
  • 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 15.18, ERG is valued correctly.
  • 78.26% of the companies in the same industry are more expensive than ERG, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.18. ERG is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 15.09 indicates a correct valuation of ERG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ERG indicates a somewhat cheap valuation: ERG is cheaper than 65.22% of the companies listed in the same industry.
  • ERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.18
Fwd PE 15.09
ERG.MI Price Earnings VS Forward Price EarningsERG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 73.91% of the companies in the same industry are more expensive than ERG, based on the Enterprise Value to EBITDA ratio.
  • ERG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERG is cheaper than 82.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.59
EV/EBITDA 8.01
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 excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y3.83%
EPS Next 3Y2.4%

More info and screens

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

7

5. Dividend

5.1 Amount

  • ERG has a Yearly Dividend Yield of 4.52%, which is a nice return.
  • ERG's Dividend Yield is rather good when compared to the industry average which is at 2.36. 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 1.80.
Industry RankSector Rank
Dividend Yield 4.52%

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

  • ERG pays out 72.21% of its income as dividend. 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

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Find the best dividend stocksShow peers with best dividend

ERG SPA

BIT:ERG (2/12/2026, 5:35:15 PM)

21.86

-1.06 (-4.62%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14
Earnings (Next)03-09
Inst Owners19.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.29B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.38 (11.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.52%
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)-1.73%
EPS NY rev (3m)-4.58%
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 RankSector Rank
PE 15.18
Fwd PE 15.09
P/S 3.01
P/FCF 11.59
P/OCF 7.09
P/B 1.62
P/tB 6.68
EV/EBITDA 8.01
EPS(TTM)1.44
EY6.59%
EPS(NY)1.45
Fwd EY6.63%
FCF(TTM)1.89
FCFY8.62%
OCF(TTM)3.08
OCFY14.1%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.35
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 1.53
F-Score6
WACC4.79%
ROIC/WACC1.11
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 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%.