ERG SPA (ERG.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:ERG • IT0001157020

22.56 EUR
+0.44 (+1.99%)
Last: Feb 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

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 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.


Dividend Valuation Growth Profitability Health

9

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.
  • 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

  • ERG has a Return On Assets of 3.69%. This is in the better half of the industry: ERG outperforms 77.27% of its industry peers.
  • ERG has a Return On Equity of 10.40%. This is in the better half of the industry: ERG outperforms 77.27% of its industry peers.
  • The Return On Invested Capital of ERG (5.33%) is better 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 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 86.36% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has grown nicely.
  • ERG has a Operating Margin of 33.37%. This is amongst the best in the industry. ERG outperforms 90.91% of its industry peers.
  • In the last couple of years the Operating Margin of ERG has grown nicely.
  • 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
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 1.52. 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 (1.52) than 68.18% 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.
  • With an excellent Debt to FCF ratio value of 9.46, ERG belongs to the best 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.
  • Looking at the Debt to Equity ratio, with a value of 1.30, ERG is doing worse than 63.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.52
ROIC/WACC1.12
WACC4.76%
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.
  • With a Current ratio value of 1.71, ERG perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
  • A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG has a Quick ratio of 1.65. This is comparable to the rest of the industry: ERG outperforms 59.09% 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%.
  • 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

  • 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 5.19% 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

  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.67 indicates a correct valuation of ERG.
  • Based on the Price/Earnings ratio, ERG is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
  • ERG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 15.58, ERG is valued correctly.
  • Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
  • ERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.78.
Industry RankSector Rank
PE 15.67
Fwd PE 15.58
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

  • 72.73% of the companies in the same industry are more expensive than ERG, based on the Enterprise Value to EBITDA ratio.
  • 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 RankSector Rank
P/FCF 11.97
EV/EBITDA 7.93
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)0.36
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 2.46. ERG pays more dividend than 86.36% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, ERG pays a better dividend.
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

  • 72.21% of the earnings are spent on dividend by ERG. This is not a sustainable payout ratio.
  • ERG's earnings are declining while the Dividend Rate has been growing. 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 (2/6/2026, 7:00:00 PM)

22.56

+0.44 (+1.99%)

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 Cap3.39B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.38 (8.07%)
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 15.67
Fwd PE 15.58
P/S 3.11
P/FCF 11.97
P/OCF 7.32
P/B 1.68
P/tB 6.9
EV/EBITDA 7.93
EPS(TTM)1.44
EY6.38%
EPS(NY)1.45
Fwd EY6.42%
FCF(TTM)1.89
FCFY8.36%
OCF(TTM)3.08
OCFY13.66%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.36
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 1.52
F-Score6
WACC4.76%
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%.