HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.14 EUR
-0.05 (-1.24%)
Overall HER gets a fundamental rating of 6 out of 10. We evaluated HER against 18 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of HER get a neutral evaluation. Nothing too spectacular is happening here. HER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HER had positive earnings in the past year.
In the past year HER had a positive cash flow from operations.
Each year in the past 5 years HER has been profitable.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
HER has a Return On Assets of 5.12%. This is amongst the best in the industry. HER outperforms 94.44% of its industry peers.
HER has a better Return On Equity (18.73%) than 88.89% of its industry peers.
The Return On Invested Capital of HER (8.42%) is better than 88.89% of its industry peers.
HER had an Average Return On Invested Capital over the past 3 years of 5.37%. This is in line with the industry average of 5.80%.
The last Return On Invested Capital (8.42%) for HER is above the 3 year average (5.37%), which is a sign of increasing profitability.
| 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 Profit Margin of 3.44%. This is in the lower half of the industry: HER underperforms 77.78% of its industry peers.
HER's Profit Margin has declined in the last couple of years.
The Operating Margin of HER (5.83%) is worse than 88.89% of its industry peers.
HER's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 43.42%, HER is in the better half of the industry, outperforming 61.11% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HER is creating some value.
HER has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HER has been reduced compared to 5 years ago.
HER has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HER (2.44) is better than 100.00% of its industry peers.
The Debt to FCF ratio of HER is 27.04, which is on the high side as it means it would take HER, 27.04 years of fcf income to pay off 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 72.22% of the companies in the same industry.
HER has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HER has a Debt to Equity ratio of 1.24. This is in the better half of the industry: HER outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.55
WACC5.44%
2.3 Liquidity
HER has a Current Ratio of 1.19. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.19, HER belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
HER has a Quick Ratio of 1.12. This is a normal value and indicates that HER is financially healthy and should not expect problems in meeting its short term obligations.
HER's Quick ratio of 1.12 is amongst the best of the industry. HER outperforms 94.44% 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.
HER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
Looking at the last year, HER shows a quite strong growth in Revenue. The Revenue has grown by 16.42% in the last year.
The Revenue has been growing by 13.27% on average over the past years. This is quite good.
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
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.26% yearly.
HER is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.84% yearly.
EPS Next Y7.54%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.28, the valuation of HER can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HER indicates a rather cheap valuation: HER is cheaper than 83.33% of the companies listed in the same industry.
HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 12.64, the valuation of HER can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 72.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (23.88), we can say HER is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.32 | ||
| EV/EBITDA | 5.8 |
4.3 Compensation for Growth
The 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)1.1
PEG (5Y)1.5
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.66, HER is paying slightly less dividend.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of HER is nicely growing with an annual growth rate of 9.46%!
Dividend Growth(5Y)9.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
36.07% of the earnings are spent on dividend by HER. This is a low number and sustainable payout ratio.
The dividend of HER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.07%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
BIT:HER (1/9/2026, 7:00:00 PM)
4.14
-0.05 (-1.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners22.33%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.17B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (8.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP36.07%
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)3.27%
PT rev (3m)5.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 12.64 | ||
| P/S | 0.29 | ||
| P/FCF | 31.32 | ||
| P/OCF | 5.3 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)0.5
EY12.08%
EPS(NY)0.33
Fwd EY7.91%
FCF(TTM)0.13
FCFY3.19%
OCF(TTM)0.78
OCFY18.86%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.1
PEG (5Y)1.5
Graham Number5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 18.73% | ||
| ROCE | 12.4% | ||
| ROIC | 8.42% | ||
| ROICexc | 9.39% | ||
| ROICexgc | 29.89% | ||
| OM | 5.83% | ||
| PM (TTM) | 3.44% | ||
| GM | 43.42% | ||
| FCFM | 0.94% |
ROA(3y)2.57%
ROA(5y)2.56%
ROE(3y)11.26%
ROE(5y)10.89%
ROIC(3y)5.37%
ROIC(5y)5.24%
ROICexc(3y)6.37%
ROICexc(5y)6.12%
ROICexgc(3y)22.48%
ROICexgc(5y)21.02%
ROCE(3y)8.03%
ROCE(5y)7.84%
ROICexgc growth 3Y12.09%
ROICexgc growth 5Y12.87%
ROICexc growth 3Y6.53%
ROICexc growth 5Y6.34%
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%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 166.28% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 6.5 | ||
| Cash Conversion | 64.34% | ||
| Profit Quality | 27.18% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.44 |
F-Score6
WACC5.44%
ROIC/WACC1.55
Cap/Depr(3y)151.99%
Cap/Depr(5y)138.41%
Cap/Sales(3y)5.23%
Cap/Sales(5y)5.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.73%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%-0.45%
EPS Next Y7.54%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
EPS Next 5Y3.26%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
Revenue Next Year-12.34%
Revenue Next 2Y-5.67%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.84%
EBIT growth 1Y5.53%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year91.39%
EBIT Next 3Y26.89%
EBIT Next 5Y20.14%
FCF growth 1Y-67.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.75%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%
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%.