ERG SPA (ERG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ERG - IT0001157020 - Common Stock
21.78 EUR
-0.14 (-0.64%)
We assign a fundamental rating of 5 out of 10 to ERG. ERG was compared to 19 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
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.
Each year in the past 5 years ERG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ERG (3.69%) is better than 73.68% of its industry peers.
With a decent Return On Equity value of 10.40%, ERG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.33%, ERG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERG is in line with the industry average of 5.23%.
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
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.
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 89.47% 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 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.
Compared to 5 years ago, ERG has less shares outstanding
ERG has a worse debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 1.50, ERG is doing good in the industry, outperforming 68.42% 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.
The Debt to FCF ratio of ERG (9.46) is better than 78.95% 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.
ERG's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. ERG is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.15
WACC4.63%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ERG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, ERG perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that ERG should not have too much problems paying its short term obligations.
The Quick ratio of ERG (1.65) is comparable to the rest of the industry.
| 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%.
ERG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.27% yearly.
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
The Earnings Per Share is expected to decrease by -1.76% on average over the next years.
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-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
EPS Next 5Y-1.76%
Revenue Next Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
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
ERG is valuated correctly with a Price/Earnings ratio of 15.13.
Based on the Price/Earnings ratio, ERG is valued a bit cheaper than 78.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, ERG is valued a bit cheaper.
ERG is valuated correctly with a Price/Forward Earnings ratio of 14.85.
ERG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERG is cheaper than 63.16% of the companies in the same industry.
ERG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
68.42% of the companies in the same industry are more expensive than ERG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ERG is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The excellent profitability rating of ERG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y4.47%
EPS Next 3Y3.16%
5. Dividend
5.1 Amount
ERG has a Yearly Dividend Yield of 4.55%, which is a nice return.
ERG's Dividend Yield is rather good when compared to the industry average which is at 3.76. ERG pays more dividend than 89.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ERG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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
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 2Y4.47%
EPS Next 3Y3.16%
BIT:ERG (12/1/2025, 5:35:15 PM)
21.78
-0.14 (-0.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.27B
Revenue(TTM)1.09B
Net Income(TTM)210.37M
Analysts74.29
Price Target24.03 (10.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)1.73%
PT rev (3m)3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.85 | ||
| P/S | 3 | ||
| P/FCF | 11.55 | ||
| P/OCF | 7.07 | ||
| P/B | 1.62 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)1.44
EY6.61%
EPS(NY)1.47
Fwd EY6.73%
FCF(TTM)1.89
FCFY8.66%
OCF(TTM)3.08
OCFY14.15%
SpS7.26
BVpS13.46
TBVpS3.27
PEG (NY)N/A
PEG (5Y)0.35
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
WACC4.63%
ROIC/WACC1.15
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-4.83%
EPS Next 2Y4.47%
EPS Next 3Y3.16%
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 Year7.61%
Revenue Next 2Y6.86%
Revenue Next 3Y5.18%
Revenue Next 5Y5.19%
EBIT growth 1Y-18.6%
EBIT growth 3Y11.47%
EBIT growth 5Y6.71%
EBIT Next Year96.22%
EBIT Next 3Y29.04%
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.
What is the valuation status of ERG SPA (ERG.MI) stock?
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.
How financially healthy is ERG SPA?
The financial health rating of ERG SPA (ERG.MI) is 4 / 10.
Can you provide the dividend sustainability for ERG stock?
The dividend rating of ERG SPA (ERG.MI) is 7 / 10 and the dividend payout ratio is 72.21%.