ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:ERG • IT0001157020
22.44 EUR
-0.02 (-0.09%)
Last: Feb 4, 2026, 11:03 AM
ERG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 industry peers in the Independent Power and Renewable Electricity Producers industry. While ERG has a great profitability rating, 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.
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.
- Each year in the past 5 years ERG has been profitable.
- ERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ERG has a better Return On Assets (3.69%) than 77.27% of its industry peers.
- The Return On Equity of ERG (10.40%) is better than 77.27% of its industry peers.
- ERG has a better Return On Invested Capital (5.33%) than 81.82% 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 4.98%.
- 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 has a better Profit Margin (19.28%) than 86.36% of its industry peers.
- In the last couple of years the Profit Margin of ERG has grown nicely.
- ERG's Operating Margin of 33.37% is amongst the best of the industry. ERG outperforms 90.91% of its industry peers.
- In the last couple of years the Operating Margin of ERG has grown nicely.
- ERG has a better Gross Margin (98.63%) than 100.00% of its industry peers.
- 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
- 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.
- The number of shares outstanding for ERG has been reduced compared to 5 years ago.
- The debt/assets ratio for ERG is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.51, we must say that ERG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.51, ERG is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of ERG (9.46) is better than 81.82% 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's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. ERG is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.12
WACC4.75%
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 54.55% of its industry peers.
- A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
- The Quick ratio of ERG (1.65) is comparable to the rest of the industry.
| 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.
- ERG shows a decrease in Revenue. In the last year, the revenue decreased by -3.11%.
- 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
- ERG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
- The Revenue is expected to grow by 5.19% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.58 indicates a correct valuation of ERG.
- ERG's Price/Earnings ratio is rather cheap when compared to the industry. ERG is cheaper than 81.82% of the companies in the same industry.
- ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
- ERG is valuated correctly with a Price/Forward Earnings ratio of 15.49.
- ERG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 68.18% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ERG to the average of the S&P500 Index (25.51), we can say ERG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
- 77.27% of the companies in the same industry are more expensive than ERG, based on the Enterprise Value to EBITDA ratio.
- 77.27% of the companies in the same industry are more expensive than ERG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
- The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y3.83%
EPS Next 3Y2.4%
5. Dividend
5.1 Amount
- ERG has a Yearly Dividend Yield of 4.48%, which is a nice return.
- ERG's Dividend Yield is rather good when compared to the industry average which is at 2.41. ERG pays more dividend than 86.36% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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%
BIT:ERG (2/4/2026, 11:03:54 AM)
22.44
-0.02 (-0.09%)
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 Cap3.37B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.3 (8.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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)1.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.73%
EPS NY rev (3m)-5.46%
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 | 15.58 | ||
| Fwd PE | 15.49 | ||
| P/S | 3.09 | ||
| P/FCF | 11.9 | ||
| P/OCF | 7.28 | ||
| P/B | 1.67 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)1.44
EY6.42%
EPS(NY)1.45
Fwd EY6.45%
FCF(TTM)1.89
FCFY8.4%
OCF(TTM)3.08
OCFY13.74%
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 | 1.51 |
F-Score6
WACC4.75%
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-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 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 9 / 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 7 / 10 and the dividend payout ratio is 72.21%.