ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

22.98 EUR
+0.5 (+2.22%)
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.
  • ERG had a positive operating cash flow in the past year.
  • Each year in the past 5 years ERG has 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 2025 0 200M 400M 600M 800M

1.2 Ratios

  • ERG's Return On Assets of 2.51% is in line compared to the rest of the industry. ERG outperforms 60.00% of its industry peers.
  • ERG's Return On Equity of 7.12% is in line compared to the rest of the industry. ERG outperforms 55.00% of its industry peers.
  • ERG's Return On Invested Capital of 5.63% is fine compared to the rest of the industry. ERG outperforms 75.00% 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 5.34%.
  • 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

  • ERG's Profit Margin of 12.58% is fine compared to the rest of the industry. ERG outperforms 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has declined.
  • ERG has a better Operating Margin (33.98%) than 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of ERG has grown nicely.
  • ERG has a Gross Margin of 98.78%. This is amongst the best in the industry. ERG outperforms 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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4

2. ERG.MI Health Analysis

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.
  • ERG has a better debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.54, we must say that ERG is in the distress zone and has some risk of bankruptcy.
  • ERG's Altman-Z score of 1.54 is fine compared to the rest of the industry. ERG outperforms 65.00% of its industry peers.
  • ERG has a debt to FCF ratio of 11.32. This is a negative value and a sign of low solvency as ERG would need 11.32 years to pay back of all of its debts.
  • The Debt to FCF ratio of ERG (11.32) is better than 80.00% of its industry peers.
  • A Debt/Equity ratio of 1.31 is on the high side and indicates that ERG has dependencies on debt financing.
  • ERG has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: ERG underperforms 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 11.32
Altman-Z 1.54
ROIC/WACC1.19
WACC4.72%
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

  • ERG has a Current Ratio of 1.75. This is a normal value and indicates that ERG is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.75, ERG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • A Quick Ratio of 1.70 indicates that ERG should not have too much problems paying its short term obligations.
  • ERG has a Quick ratio (1.70) which 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

  • ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.49%.
  • Measured over the past years, ERG shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.38% on average per year.
  • The Revenue has been growing slightly by 0.77% in the past 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

  • ERG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.75% yearly.
  • Based on estimates for the next years, ERG will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
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.
  • 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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4

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • ERG is valuated rather expensively with a Price/Earnings ratio of 23.45.
  • Based on the Price/Earnings ratio, ERG is valued a bit cheaper than 65.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ERG to the average of the S&P500 Index (26.54), we can say ERG is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 19.03, the valuation of ERG can be described as rather expensive.
  • ERG's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.68. ERG is around the same levels.
Industry RankSector Rank
PE 23.45
Fwd PE 19.03
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

  • 70.00% 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 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.9
EV/EBITDA 7.03
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.
  • ERG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)N/A
EPS Next 2Y5.69%
EPS Next 3Y6.75%

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6

5. ERG.MI Dividend Analysis

5.1 Amount

  • ERG has a Yearly Dividend Yield of 4.46%, which is a nice return.
  • ERG's Dividend Yield is a higher than the industry average which is at 2.84.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.46%

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 (4/30/2026, 5:35:30 PM)

22.98

+0.5 (+2.22%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Industry Strength47.97
Industry Growth14
Earnings (Last)03-09
Earnings (Next)05-13
Inst Owners18.59%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.45B
Revenue(TTM)1.12B
Net Income(TTM)140.96M
Analysts68
Price Target23.18 (0.87%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.46%
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)-16.64%
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 23.45
Fwd PE 19.03
P/S 3.08
P/FCF 14.9
P/OCF 8.55
P/B 1.74
P/tB 6.06
EV/EBITDA 7.03
EPS(TTM)0.98
EY4.26%
EPS(NY)1.21
Fwd EY5.25%
FCF(TTM)1.54
FCFY6.71%
OCF(TTM)2.69
OCFY11.7%
SpS7.45
BVpS13.17
TBVpS3.79
PEG (NY)2.67
PEG (5Y)N/A
Graham Number17.0429 (-25.84%)
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
WACC4.72%
ROIC/WACC1.19
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 4 / 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.