ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - BIT:ERG - IT0001157020 - Common Stock
21.42 EUR
-0.78 (-3.51%)
Taking everything into account, ERG scores 6 out of 10 in our fundamental rating. ERG was compared to 20 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 it does not seem to be growing. ERG also has an excellent dividend rating. These ratings could make ERG a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ERG was profitable.
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.
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 73.68% of the companies in the same industry.
The Return On Equity of ERG (10.40%) is better than 73.68% 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 73.68% 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 5.35%.
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
The Profit Margin of ERG (19.28%) is better than 84.21% of its industry peers.
ERG's Profit Margin has improved in the last couple of years.
The Operating Margin of ERG (33.37%) is better than 89.47% of its industry peers.
ERG's Operating Margin has improved in the last couple of years.
The Gross Margin of ERG (98.63%) is better than 100.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
ERG has less shares outstanding than it did 1 year ago.
ERG has less shares outstanding than it did 5 years ago.
ERG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that ERG is in the distress zone and has some risk of bankruptcy.
ERG's Altman-Z score of 1.49 is fine compared to the rest of the industry. ERG outperforms 63.16% 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.
Looking at the Debt to FCF ratio, with a value of 9.46, ERG belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 1.30 is on the high side and indicates that ERG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.30, ERG perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.14
WACC4.66%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ERG should not have too much problems paying its short term obligations.
The Current ratio of ERG (1.71) is comparable to the rest of the industry.
ERG has a Quick Ratio of 1.65. 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 Quick ratio of 1.65 is in line compared to the rest of the industry. ERG outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The earnings per share for ERG have decreased strongly by -36.52% in the last year.
ERG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.27% yearly.
The Revenue has decreased by -3.11% in the past year.
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
Based on estimates for the next years, ERG will show a decrease in Earnings Per Share. The EPS will decrease by -1.78% on average per year.
The Revenue is expected to grow by 5.05% on average over the next years.
EPS Next Y-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
EPS Next 5Y-1.78%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.88 indicates a correct valuation of ERG.
ERG's Price/Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 78.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. ERG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.61, ERG is valued correctly.
ERG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 63.16% of the companies in the same industry.
ERG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
ERG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERG is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
ERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y4.47%
EPS Next 3Y3.16%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.50%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.44. ERG pays more dividend than 94.74% of the companies in the same industry.
ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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.
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 2Y4.47%
EPS Next 3Y3.16%
BIT:ERG (11/14/2025, 7:00:00 PM)
21.42
-0.78 (-3.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.22B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.03 (12.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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)1.73%
PT rev (3m)3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.61 | ||
| P/S | 2.95 | ||
| P/FCF | 11.36 | ||
| P/OCF | 6.95 | ||
| P/B | 1.59 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)1.44
EY6.72%
EPS(NY)1.47
Fwd EY6.84%
FCF(TTM)1.89
FCFY8.8%
OCF(TTM)3.08
OCFY14.39%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.34
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 | 1.49 |
F-Score6
WACC4.66%
ROIC/WACC1.14
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-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
EPS Next 5Y-1.78%
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 5Y5.05%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.22%
EBIT Next 3Y29.04%
EBIT Next 5Y21.19%
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.
What is the valuation status of ERG SPA (ERG.MI) stock?
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 8 / 10.
How financially healthy is ERG SPA?
The financial health rating of ERG SPA (ERG.MI) is 5 / 10.
Can you provide the dividend sustainability for ERG stock?
The dividend rating of ERG SPA (ERG.MI) is 7 / 10 and the dividend payout ratio is 72.21%.