ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

21.78 EUR
-0.78 (-3.46%)
Last:

This ERG.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERG.MI Profitability Analysis

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.
  • 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

  • Looking at the Return On Assets, with a value of 3.69%, ERG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
  • ERG's Return On Equity of 10.40% is fine compared to the rest of the industry. ERG outperforms 76.19% of its industry peers.
  • ERG has a better Return On Invested Capital (5.33%) than 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 4.79%.
  • 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's Profit Margin of 19.28% is amongst the best of the industry. ERG outperforms 80.95% of its industry peers.
  • ERG's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 33.37%, ERG belongs to the best of the industry, outperforming 85.71% 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.
  • 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

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5

2. ERG.MI Health Analysis

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.
  • 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
  • The debt/assets ratio for ERG is higher compared to a year ago.
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 1.50, we must say that ERG is in the distress zone and has some risk of bankruptcy.
  • ERG has a better Altman-Z score (1.50) than 71.43% 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.
  • ERG has a Debt to FCF ratio of 9.46. This is amongst the best in the industry. ERG outperforms 85.71% of its industry peers.
  • ERG has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external 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 1.5
ROIC/WACC1.14
WACC4.66%
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 of 1.71. This is comparable to the rest of the industry: ERG outperforms 52.38% of 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 has a Quick ratio (1.65) which is in line with its industry peers.
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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3

3. ERG.MI Growth Analysis

3.1 Past

  • ERG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.84%.
  • The Earnings Per Share has been growing by 43.27% on average over the past years. This is a very strong growth
  • The Revenue has decreased by -1.77% in the past year.
  • The Revenue has been decreasing by -6.29% on average over the past years.
EPS 1Y (TTM)-34.84%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%8.85%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%12.82%

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-9.12%
EPS Next 2Y4.66%
EPS Next 3Y3.27%
EPS Next 5Y-1.76%
Revenue Next Year4.88%
Revenue Next 2Y6.16%
Revenue Next 3Y4.74%
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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6

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.92, the valuation of ERG can be described as correct.
  • 76.19% of the companies in the same industry are more expensive than ERG, based on the Price/Earnings ratio.
  • ERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.70.
  • A Price/Forward Earnings ratio of 14.80 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 71.43% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. ERG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.92
Fwd PE 14.8
ERG.MI Price Earnings VS Forward Price EarningsERG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERG is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ERG is valued cheaper than 80.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.55
EV/EBITDA 7.75
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)0.34
EPS Next 2Y4.66%
EPS Next 3Y3.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ERG.MI Dividend Analysis

5.1 Amount

  • ERG has a Yearly Dividend Yield of 4.43%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.43, ERG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ERG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.43%

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.
  • 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 2Y4.66%
EPS Next 3Y3.27%
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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ERG.MI Fundamentals: All Metrics, Ratios and Statistics

ERG SPA

BIT:ERG (3/13/2026, 7:00:00 PM)

21.78

-0.78 (-3.46%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-09
Earnings (Next)05-13
Inst Owners18.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.27B
Revenue(TTM)1.11B
Net Income(TTM)210.37M
Analysts72
Price Target24.38 (11.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.43%
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)0.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.07%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-1.18%
Valuation
Industry RankSector Rank
PE 14.92
Fwd PE 14.8
P/S 3
P/FCF 11.55
P/OCF 7.07
P/B 1.62
P/tB 6.66
EV/EBITDA 7.75
EPS(TTM)1.46
EY6.7%
EPS(NY)1.47
Fwd EY6.76%
FCF(TTM)1.89
FCFY8.66%
OCF(TTM)3.08
OCFY14.15%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.34
Graham Number21.03
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 1.5
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)-34.84%
EPS 3Y3.62%
EPS 5Y43.27%
EPS Q2Q%8.85%
EPS Next Y-9.12%
EPS Next 2Y4.66%
EPS Next 3Y3.27%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y7.06%
Revenue growth 5Y-6.29%
Sales Q2Q%12.82%
Revenue Next Year4.88%
Revenue Next 2Y6.16%
Revenue Next 3Y4.74%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year94.3%
EBIT Next 3Y29.58%
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 Fundamental Analysis 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 6 / 10 and the dividend payout ratio is 72.21%.