ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - BIT:ERG - IT0001157020 - Common Stock
20.62 EUR
-0.06 (-0.29%)
We assign a fundamental rating of 6 out of 10 to ERG. ERG was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
ERG had a positive operating cash flow in the past year.
In the past 5 years ERG has always been profitable.
ERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERG's Return On Assets of 3.69% is fine compared to the rest of the industry. ERG outperforms 72.73% of its industry peers.
ERG's Return On Equity of 10.40% is fine compared to the rest of the industry. ERG outperforms 68.18% of its industry peers.
ERG has a Return On Invested Capital of 5.33%. This is in the better half of the industry: ERG outperforms 77.27% 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 5.43%.
The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.33%), indicating increased profibility in the last year.
| 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 Profit Margin of 19.28%. This is amongst the best in the industry. ERG outperforms 81.82% 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 86.36% of its industry peers.
In the last couple of years the Operating Margin of ERG has grown nicely.
ERG's Gross Margin of 98.63% is amongst the best of the industry. ERG outperforms 95.45% of its industry peers.
ERG's Gross Margin has improved in the last couple of years.
| 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.
ERG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ERG has been reduced compared to 5 years ago.
ERG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that ERG is in the distress zone and has some risk of bankruptcy.
ERG has a Altman-Z score (1.47) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 9.46, ERG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.17
WACC4.57%
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.
The Current ratio of ERG (1.71) is better than 63.64% 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 68.18% 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%.
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.
ERG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.29% yearly.
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.
Based on estimates for the next years, ERG will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y-4.11%
EPS Next 2Y3.94%
EPS Next 3Y3%
EPS Next 5Y-1.76%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.07%
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
ERG is valuated correctly with a Price/Earnings ratio of 14.32.
Based on the Price/Earnings ratio, ERG is valued a bit cheaper than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ERG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.21, ERG is valued correctly.
ERG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 63.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERG to the average of the S&P500 Index (22.88), we can say ERG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 14.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y3.94%
EPS Next 3Y3%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.96%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.27. ERG pays more dividend than 95.45% of the companies in the same industry.
ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 2Y3.94%
EPS Next 3Y3%
BIT:ERG (9/19/2025, 12:22:05 PM)
20.62
-0.06 (-0.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners17.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.10B
Analysts74.29
Price Target23.62 (14.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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)1.53%
PT rev (3m)2.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 14.21 | ||
| P/S | 2.84 | ||
| P/FCF | 10.94 | ||
| P/OCF | 6.69 | ||
| P/B | 1.53 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)1.44
EY6.98%
EPS(NY)1.45
Fwd EY7.04%
FCF(TTM)1.89
FCFY9.14%
OCF(TTM)3.08
OCFY14.95%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.33
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%
ROICexcg growth 3Y13.65%
ROICexcg 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 | 1.47 |
F-Score6
WACC4.57%
ROIC/WACC1.17
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-4.11%
EPS Next 2Y3.94%
EPS Next 3Y3%
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 Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.07%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year99.87%
EBIT Next 3Y29.08%
EBIT Next 5Y21.22%
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%