HERA SPA (HER.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:HER • IT0001250932
4.182 EUR
+0.05 (+1.21%)
Last: Jan 30, 2026, 02:52 PM
We assign a fundamental rating of 6 out of 10 to HER. HER was compared to 18 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on HER. 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.
- In the past year HER had a positive cash flow from operations.
- 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 94.44% of its industry peers.
- HER's Return On Equity of 18.73% is amongst the best of the industry. HER outperforms 88.89% of its industry peers.
- The Return On Invested Capital of HER (8.42%) is better than 94.44% 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 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 worse Profit Margin (3.44%) than 77.78% of its industry peers.
- In the last couple of years the Profit Margin of HER has declined.
- 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.
- With a decent Gross Margin value of 43.42%, HER is doing good in 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
- HER 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 HER remains at a similar level compared to 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.
- HER has a Altman-Z score of 2.44. 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.
- The Debt to FCF ratio of HER (27.04) is better than 72.22% of its industry peers.
- HER has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 1.24, HER is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.54
WACC5.48%
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.
- HER has a better Current ratio (1.19) than 88.89% of its industry peers.
- 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 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.73% over the past year.
- 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.
- HER shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.42%.
- HER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.27% yearly.
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.
- Based on estimates for the next years, HER will show a decrease in Revenue. The Revenue will decrease by -1.84% on average per year.
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
- A Price/Earnings ratio of 8.36 indicates a reasonable valuation of HER.
- Based on the Price/Earnings ratio, HER is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 12.73, the valuation of HER can be described as correct.
- Based on the Price/Forward Earnings ratio, HER is valued cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. HER is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 12.73 |
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 66.67% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.64 | ||
| EV/EBITDA | 5.75 |
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)1.07
PEG (5Y)1.52
EPS Next 2Y4.51%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.66%, HER has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.30, HER is paying slightly less dividend.
- HER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
- 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 7 / 10 to HERA SPA (HER.MI). This can be considered as Undervalued.
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%.