ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ERG - IT0001157020 - Common Stock
22.5 EUR
+0.14 (+0.63%)
We assign a fundamental rating of 5 out of 10 to ERG. ERG was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG scores excellent on profitability, but 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. Finally ERG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ERG had positive earnings in the past year.
In the past year ERG had a positive cash flow from operations.
ERG had positive earnings in each of the past 5 years.
Each year in the past 5 years ERG had a positive operating cash flow.
1.2 Ratios
ERG has a Return On Assets of 3.69%. This is in the better half of the industry: ERG outperforms 75.00% of its industry peers.
The Return On Equity of ERG (10.40%) is better than 75.00% of its industry peers.
The Return On Invested Capital of ERG (5.33%) is better than 80.00% of its industry peers.
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 5.11%.
The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.33%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (19.28%) than 85.00% of its industry peers.
ERG's Profit Margin has improved in the last couple of years.
ERG has a better Operating Margin (33.37%) than 90.00% of its industry peers.
ERG's Operating Margin has improved in the last couple of years.
ERG's Gross Margin of 98.63% is amongst the best of the industry. ERG outperforms 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.
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.
Compared to 1 year ago, ERG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that ERG is in the distress zone and has some risk of bankruptcy.
ERG has a Altman-Z score of 1.51. This is in the better half of the industry: ERG outperforms 65.00% of its industry peers.
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.
The Debt to FCF ratio of ERG (9.46) is better than 85.00% of its industry peers.
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 worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.14
WACC4.69%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ERG should not have too much problems paying its short term obligations.
ERG has a Current ratio (1.71) which is in line with its industry peers.
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 60.00% of 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.
ERG shows a decrease in Revenue. In the last year, the revenue decreased by -3.11%.
The Revenue has been decreasing by -6.29% on average over the past years.
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
ERG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.63, which indicates a correct valuation of ERG.
80.00% 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 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.49, ERG is valued correctly.
Based on the Price/Forward Earnings ratio, ERG is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ERG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 7.88 |
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 2Y3.98%
EPS Next 3Y3.31%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.41%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 2.25. ERG pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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.
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 2Y3.98%
EPS Next 3Y3.31%
BIT:ERG (1/13/2026, 4:53:48 PM)
22.5
+0.14 (+0.63%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners19.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.38B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.3 (8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)2.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-3.8%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.49 | ||
| P/S | 3.1 | ||
| P/FCF | 11.93 | ||
| P/OCF | 7.3 | ||
| P/B | 1.67 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)1.44
EY6.4%
EPS(NY)1.45
Fwd EY6.46%
FCF(TTM)1.89
FCFY8.38%
OCF(TTM)3.08
OCFY13.7%
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 | 1.51 |
F-Score6
WACC4.69%
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 5 / 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 4 / 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%.