HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.044 EUR
-0.06 (-1.41%)
HER gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 18 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, HER could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- HER had positive earnings in the past year.
- HER had a positive operating cash flow in the past year.
- Each year in the past 5 years HER has been profitable.
- HER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HER has a better Return On Assets (5.12%) than 94.12% of its industry peers.
- HER's Return On Equity of 18.73% is amongst the best of the industry. HER outperforms 88.24% of its industry peers.
- HER has a better Return On Invested Capital (8.42%) than 94.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HER is in line with the industry average of 5.84%.
- The 3 year average ROIC (5.37%) for HER is below the current ROIC(8.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 18.73% | ||
| ROIC | 8.42% |
ROA(3y)2.57%
ROA(5y)2.56%
ROE(3y)11.26%
ROE(5y)10.89%
ROIC(3y)5.37%
ROIC(5y)5.24%
1.3 Margins
- HER has a worse Profit Margin (3.44%) than 76.47% of its industry peers.
- HER's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 5.83%, HER is doing worse than 88.24% of the companies in the same industry.
- HER's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 43.42%, HER perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
- In the last couple of years the Gross Margin of HER has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 3.44% | ||
| GM | 43.42% |
OM growth 3Y3.35%
OM growth 5Y-3.88%
PM growth 3Y6.68%
PM growth 5Y-7.22%
GM growth 3Y7.1%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HER is still creating some value.
- Compared to 1 year ago, HER has about the same amount of shares outstanding.
- Compared to 5 years ago, HER has less shares outstanding
- The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.43 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HER has a Altman-Z score of 2.43. This is amongst the best in the industry. HER outperforms 100.00% of its industry peers.
- HER has a debt to FCF ratio of 27.04. This is a negative value and a sign of low solvency as HER would need 27.04 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 27.04, HER is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- A Debt/Equity ratio of 1.24 is on the high side and indicates that HER has dependencies on debt financing.
- HER has a better Debt to Equity ratio (1.24) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.55
WACC5.45%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that HER should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.19, HER belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that HER should not have too much problems paying its short term obligations.
- The Quick ratio of HER (1.12) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- HER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.73%, which is quite good.
- Measured over the past 5 years, HER shows a small growth in Earnings Per Share. The EPS has been growing by 5.51% on average per year.
- The Revenue has grown by 16.42% in the past year. This is quite good.
- Measured over the past years, HER shows a quite strong growth in Revenue. The Revenue has been growing by 13.27% on average per year.
EPS 1Y (TTM)17.73%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%-0.45%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
3.2 Future
- Based on estimates for the next years, HER will show a small growth in Earnings Per Share. The EPS will grow by 3.26% on average per year.
- The Revenue is expected to decrease by -1.84% on average over the next years.
EPS Next Y7.79%
EPS Next 2Y4.51%
EPS Next 3Y4.54%
EPS Next 5Y3.26%
Revenue Next Year-12.34%
Revenue Next 2Y-5.67%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.84%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.09, which indicates a very decent valuation of HER.
- Based on the Price/Earnings ratio, HER is valued cheaper than 82.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HER is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.31, the valuation of HER can be described as correct.
- HER's Price/Forward Earnings ratio is rather cheap when compared to the industry. HER is cheaper than 88.24% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. HER is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 64.71% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.59 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
- HER's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HER has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)1.47
EPS Next 2Y4.51%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- HER has a Yearly Dividend Yield of 3.66%.
- HER's Dividend Yield is slightly below the industry average, which is at 4.30.
- Compared to an average S&P500 Dividend Yield of 1.81, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
- On average, the dividend of HER grows each year by 9.46%, which is quite nice.
Dividend Growth(5Y)9.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- HER pays out 36.07% of its income as dividend. This is a sustainable payout ratio.
- HER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.07%
EPS Next 2Y4.51%
EPS Next 3Y4.54%
HERA SPA / HER.MI FAQ
What is the ChartMill fundamental rating of HERA SPA (HER.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HER.MI.
What is the valuation status for HER stock?
ChartMill assigns a valuation rating of 6 / 10 to HERA SPA (HER.MI). This can be considered as Fairly Valued.
How profitable is HERA SPA (HER.MI) stock?
HERA SPA (HER.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for HER stock?
The financial health rating of HERA SPA (HER.MI) is 6 / 10.
Is the dividend of HERA SPA sustainable?
The dividend rating of HERA SPA (HER.MI) is 5 / 10 and the dividend payout ratio is 36.07%.