ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ERG - IT0001157020 - Common Stock
21.98 EUR
-0.08 (-0.36%)
Taking everything into account, ERG scores 6 out of 10 in our fundamental rating. ERG was compared to 19 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. 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.
In the past year ERG had a positive cash flow from operations.
ERG had positive earnings in each of the past 5 years.
ERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERG has a better Return On Assets (3.69%) than 68.42% of its industry peers.
ERG has a Return On Equity of 10.40%. This is in the better half of the industry: ERG outperforms 73.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.33%, ERG is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
ERG had an Average Return On Invested Capital over the past 3 years of 4.72%. This is in line with the industry average of 5.51%.
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
With an excellent Profit Margin value of 19.28%, ERG belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
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 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.
In the last couple of years the Gross Margin of ERG has grown nicely.
| 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.
The debt/assets ratio for ERG is higher compared to a year ago.
2.2 Solvency
ERG has an Altman-Z score of 1.50. 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 (1.50) than 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.
ERG's Debt to Equity ratio of 1.30 is in line compared to the rest of the industry. ERG outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.5 |
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.
Looking at the Current ratio, with a value of 1.71, ERG is in line with its industry, outperforming 52.63% of the companies in the same 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 has a Quick ratio (1.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.65 |
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.
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 -1.76% on average per year.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.26, the valuation of ERG can be described as correct.
78.95% of the companies in the same industry are more expensive than ERG, based on the Price/Earnings ratio.
ERG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.13, ERG is valued correctly.
Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than 68.42% of the companies in the same industry.
ERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than 68.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 7.79 |
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 2Y3.98%
EPS Next 3Y3.31%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.61%, which is a nice return.
Compared to an average industry Dividend Yield of 2.23, ERG pays a better dividend. On top of this ERG pays more dividend than 89.47% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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
ERG pays out 72.21% of its income as dividend. 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 2Y3.98%
EPS Next 3Y3.31%
BIT:ERG (12/30/2025, 7:00:00 PM)
21.98
-0.08 (-0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners19.38%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.30B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.3 (10.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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)1.11%
PT rev (3m)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.9%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 15.13 | ||
| P/S | 3.03 | ||
| P/FCF | 11.66 | ||
| P/OCF | 7.13 | ||
| P/B | 1.63 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)1.44
EY6.55%
EPS(NY)1.45
Fwd EY6.61%
FCF(TTM)1.89
FCFY8.58%
OCF(TTM)3.08
OCFY14.02%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.35
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 | 1.5 |
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-7.59%
EPS Next 2Y3.98%
EPS Next 3Y3.31%
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 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%.