ERG SPA (ERG.MI) Stock Fundamental Analysis

BIT:ERG • IT0001157020

22.82 EUR
-0.14 (-0.61%)
Last: Feb 20, 2026, 05:35 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

Overall ERG gets a fundamental rating of 6 out of 10. We evaluated ERG against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. ERG has an excellent profitability rating, but 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. 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.
  • In the past year ERG had a positive cash flow from operations.
  • Each year in the past 5 years ERG has 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

  • The Return On Assets of ERG (3.69%) is better than 76.19% of its industry peers.
  • With a decent Return On Equity value of 10.40%, ERG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
  • ERG's Return On Invested Capital of 5.33% is fine compared to the rest of the industry. ERG outperforms 76.19% 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 5.39%.
  • The 3 year average ROIC (4.72%) for ERG is below the current ROIC(5.33%), indicating increased profibility in the last year.
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 85.71% 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 90.48% of its industry peers.
  • ERG's Operating Margin has improved in the last couple of years.
  • ERG has a Gross Margin of 98.63%. This is amongst the best in 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 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

  • 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.
  • 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.
  • ERG has a Altman-Z score of 1.53. This is in the better half of the industry: ERG outperforms 61.90% 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.
  • With an excellent Debt to FCF ratio value of 9.46, ERG belongs to the best of the industry, outperforming 85.71% 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 RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.53
ROIC/WACC1.11
WACC4.78%
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 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.
  • Looking at the Quick ratio, with a value of 1.65, ERG is in the better half of the industry, outperforming 61.90% 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

  • ERG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
  • ERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
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

  • 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.
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

  • A Price/Earnings ratio of 15.85 indicates a correct valuation of ERG.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERG indicates a rather cheap valuation: ERG is cheaper than 85.71% of the companies listed in the same industry.
  • ERG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 15.76, 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 66.67% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. ERG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.85
Fwd PE 15.76
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

  • ERG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERG is cheaper than 61.90% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERG is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.1
EV/EBITDA 8.02
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

  • The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
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

  • ERG has a Yearly Dividend Yield of 4.57%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.41, ERG pays a better dividend. On top of this ERG pays more dividend than 90.48% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, ERG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.57%

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.
  • 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 2Y3.83%
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

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Find the best dividend stocksShow peers with best dividend

ERG SPA

BIT:ERG (2/20/2026, 5:35:15 PM)

22.82

-0.14 (-0.61%)

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 Cap3.43B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.67
Price Target24.38 (6.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.57%
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 15.85
Fwd PE 15.76
P/S 3.14
P/FCF 12.1
P/OCF 7.4
P/B 1.7
P/tB 6.98
EV/EBITDA 8.02
EPS(TTM)1.44
EY6.31%
EPS(NY)1.45
Fwd EY6.35%
FCF(TTM)1.89
FCFY8.26%
OCF(TTM)3.08
OCFY13.51%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.37
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
WACC4.78%
ROIC/WACC1.11
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%.