ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - BIT:ERG - IT0001157020 - Common Stock
22.6 EUR
-0.28 (-1.22%)
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 has a great profitability rating, there are some minor concerns on its financial health. ERG is valued correctly, but it does not seem to be growing. ERG also has an excellent dividend rating. These ratings would make ERG suitable 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.
Each year in the past 5 years ERG had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.69%, ERG is doing good in the industry, outperforming 63.16% of the companies in the same industry.
ERG has a better Return On Equity (10.40%) than 68.42% of its industry peers.
ERG has a better Return On Invested Capital (5.33%) than 73.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERG is in line with the industry average of 5.45%.
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
ERG's Profit Margin of 19.28% is fine compared to the rest of the industry. ERG outperforms 78.95% 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 84.21% 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 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
ERG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 1.52, we must say that ERG is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.52, ERG is doing good in the industry, outperforming 68.42% 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.
With an excellent Debt to FCF ratio value of 9.46, ERG belongs to the best 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.
The Debt to Equity ratio of ERG (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.12
WACC4.77%
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.
The Quick ratio of ERG (1.65) is comparable to the rest of the industry.
| 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.
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.
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 -1.82% on average per year.
Based on estimates for the next years, ERG will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
EPS Next Y-3.94%
EPS Next 2Y4.67%
EPS Next 3Y2.97%
EPS Next 5Y-1.82%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.69, ERG is valued correctly.
ERG's Price/Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 68.42% of the companies in the same industry.
ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.89.
Based on the Price/Forward Earnings ratio of 15.36, the valuation of ERG can be described as correct.
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.
When comparing the Price/Forward Earnings ratio of ERG to the average of the S&P500 Index (22.99), we can say ERG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 73.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y4.67%
EPS Next 3Y2.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, ERG is a good candidate for dividend investing.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.42. ERG pays more dividend than 94.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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 2Y4.67%
EPS Next 3Y2.97%
BIT:ERG (10/24/2025, 7:00:00 PM)
22.6
-0.28 (-1.22%)
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 Cap3.40B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target23.62 (4.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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%
PT rev (3m)3.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 15.36 | ||
| P/S | 3.11 | ||
| P/FCF | 11.99 | ||
| P/OCF | 7.33 | ||
| P/B | 1.68 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)1.44
EY6.37%
EPS(NY)1.47
Fwd EY6.51%
FCF(TTM)1.89
FCFY8.34%
OCF(TTM)3.08
OCFY13.64%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.36
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 | 1.52 |
F-Score6
WACC4.77%
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-3.94%
EPS Next 2Y4.67%
EPS Next 3Y2.97%
EPS Next 5Y-1.82%
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 5Y5.01%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.22%
EBIT Next 3Y29.04%
EBIT Next 5Y21.14%
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%.