ERG SPA (ERG.MI) Fundamental Analysis & Valuation

BIT:ERG • IT0001157020

Current stock price

22.56 EUR
-0.54 (-2.34%)
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

  • In the past year ERG was profitable.
  • ERG had a positive operating cash flow in the past year.
  • In the past 5 years ERG has always 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

  • ERG's Return On Assets of 3.69% is fine compared to the rest of the industry. ERG outperforms 71.43% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.40%, ERG is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • The Return On Invested Capital of ERG (5.33%) is better than 76.19% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 5.21%.
  • 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

  • The Profit Margin of ERG (19.28%) is better than 85.71% of its industry peers.
  • In the last couple of years the Profit Margin of ERG has grown nicely.
  • ERG's Operating Margin of 33.37% is amongst the best of 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

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5

2. ERG.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERG is creating some value.
  • The number of shares outstanding for ERG has been reduced compared to 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.
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.
  • Looking at the Altman-Z score, with a value of 1.53, ERG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • 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 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.
  • Looking at the Debt to Equity ratio, with a value of 1.30, ERG is in line with its industry, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 9.46
Altman-Z 1.53
ROIC/WACC1.14
WACC4.67%
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's Current ratio of 1.71 is in line compared 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.
  • The Quick ratio of ERG (1.65) is comparable to the rest of the 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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3

3. ERG.MI Growth Analysis

3.1 Past

  • The earnings per share for ERG have decreased strongly by -34.84% in the last year.
  • The Earnings Per Share has been growing by 43.27% on average over the past years. This is a very strong growth
  • Looking at the last year, ERG shows a decrease in Revenue. The Revenue has decreased by -1.77% in the last 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)-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 3.60% 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 Year4.43%
Revenue Next 2Y2.81%
Revenue Next 3Y2.95%
Revenue Next 5Y3.6%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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5

4. ERG.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 15.45, ERG is valued correctly.
  • Based on the Price/Earnings ratio, ERG is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, ERG is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 15.33, the valuation of ERG can be described as correct.
  • 66.67% of the companies in the same industry are more expensive than ERG, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, ERG is valued a bit cheaper.
Industry RankSector Rank
PE 15.45
Fwd PE 15.33
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

  • ERG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERG is cheaper than 66.67% of the companies in the same industry.
  • 76.19% of the companies in the same industry are more expensive than ERG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.97
EV/EBITDA 8.05
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)0.36
EPS Next 2Y4.66%
EPS Next 3Y3.27%

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7

5. ERG.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.69%, ERG is a good candidate for dividend investing.
  • ERG's Dividend Yield is rather good when compared to the industry average which is at 2.46. ERG pays more dividend than 85.71% of the companies in the same industry.
  • ERG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.69%

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.
  • 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 2Y4.66%
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 (4/7/2026, 5:35:15 PM)

22.56

-0.54 (-2.34%)

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 Cap3.39B
Revenue(TTM)1.11B
Net Income(TTM)210.37M
Analysts68
Price Target23.18 (2.75%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.69%
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)-4.92%
PT rev (3m)-4.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-1.6%
Valuation
Industry RankSector Rank
PE 15.45
Fwd PE 15.33
P/S 3.11
P/FCF 11.97
P/OCF 7.32
P/B 1.68
P/tB 6.9
EV/EBITDA 8.05
EPS(TTM)1.46
EY6.47%
EPS(NY)1.47
Fwd EY6.52%
FCF(TTM)1.89
FCFY8.36%
OCF(TTM)3.08
OCFY13.66%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.36
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 1.53
F-Score6
WACC4.67%
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 Year4.43%
Revenue Next 2Y2.81%
Revenue Next 3Y2.95%
Revenue Next 5Y3.6%
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 5 / 10 to ERG SPA (ERG.MI). This can be considered as Fairly Valued.


How profitable is ERG SPA (ERG.MI) 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.


What is the earnings growth outlook for ERG SPA?

The Earnings per Share (EPS) of ERG SPA (ERG.MI) is expected to decline by -9.12% in the next year.