ERG SPA (ERG.MI) Stock Fundamental Analysis

BIT:ERG • IT0001157020

21.86 EUR
-1.06 (-4.62%)
Last: Feb 12, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

Taking everything into account, ERG scores 6 out of 10 in our fundamental rating. ERG was compared to 23 industry peers in the Independent Power and Renewable Electricity Producers industry. While ERG belongs to the best of the industry regarding profitability, 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. With these ratings, ERG could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

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.
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 78.26% of its industry peers.
  • ERG's Return On Equity of 10.40% is fine compared to the rest of the industry. ERG outperforms 69.57% of its industry peers.
  • The Return On Invested Capital of ERG (5.33%) is better than 78.26% 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 5.27%.
  • 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

  • ERG has a better Profit Margin (19.28%) than 86.96% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has grown nicely.
  • With an excellent Operating Margin value of 33.37%, ERG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • ERG's Operating Margin has improved in the last couple of years.
  • ERG has a better Gross Margin (98.63%) than 100.00% of its industry peers.
  • ERG's Gross Margin has improved in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • Compared to 5 years ago, ERG has less shares outstanding
  • ERG has a worse 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 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

  • Based on the Altman-Z score of 1.53, 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 1.53, ERG is in the better half of the industry, outperforming 65.22% 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.
  • Looking at the Debt to FCF ratio, with a value of 9.46, ERG belongs to the top of the industry, outperforming 82.61% 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.
  • ERG has a Debt to Equity ratio (1.30) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.53
ROIC/WACC1.13
WACC4.7%
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

  • 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 has a Current ratio (1.71) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.65, ERG is doing good in the industry, outperforming 60.87% of the companies in the same industry.
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

  • 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.
  • Looking at the last year, ERG shows a decrease in Revenue. The Revenue has decreased by -3.11% in the last 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 5.19% 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

  • 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.
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

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.18, the valuation of ERG can be described as correct.
  • Based on the Price/Earnings ratio, ERG is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ERG to the average of the S&P500 Index (27.67), we can say ERG is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 15.09, which indicates a correct valuation of ERG.
  • ERG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 65.22% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.69. ERG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.18
Fwd PE 15.09
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

  • Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 73.91% of the companies in the same industry.
  • ERG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERG is cheaper than 82.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.59
EV/EBITDA 8.01
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)0.35
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

  • With a Yearly Dividend Yield of 4.52%, ERG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.36, ERG pays a better dividend. On top of this ERG pays more dividend than 86.96% of the companies listed in the same industry.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 4.52%

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 2Y3.83%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

ERG SPA

BIT:ERG (2/12/2026, 7:00:00 PM)

21.86

-1.06 (-4.62%)

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 Cap3.29B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.38 (11.53%)
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 15.18
Fwd PE 15.09
P/S 3.01
P/FCF 11.59
P/OCF 7.09
P/B 1.62
P/tB 6.68
EV/EBITDA 8.01
EPS(TTM)1.44
EY6.59%
EPS(NY)1.45
Fwd EY6.63%
FCF(TTM)1.89
FCFY8.62%
OCF(TTM)3.08
OCFY14.1%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.35
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 1.53
F-Score6
WACC4.7%
ROIC/WACC1.13
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 6 / 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.


What is the financial health of ERG SPA (ERG.MI) stock?

The financial health rating of ERG SPA (ERG.MI) is 5 / 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%.