HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
3.994 EUR
+0.04 (+1.06%)
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 17 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER has a decent growth rate and is not valued too expensively.
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.
In the past 5 years HER has always 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 94.12% of its industry peers.
HER has a Return On Equity of 18.73%. This is amongst the best in the industry. HER outperforms 88.24% of its industry peers.
The Return On Invested Capital of HER (8.42%) is better than 88.24% 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 6.16%.
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
The Profit Margin of HER (3.44%) is worse than 70.59% of its industry peers.
HER's Profit Margin has declined in the last couple of years.
HER's Operating Margin of 5.83% is on the low side compared to the rest of the industry. HER is outperformed by 82.35% of its industry peers.
In the last couple of years the Operating Margin of HER has declined.
Looking at the Gross Margin, with a value of 43.42%, HER is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
HER's Gross Margin has declined in the last couple of years.
| 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.
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.
The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
HER has an Altman-Z score of 2.42. This is not the best score and indicates that HER is in the grey zone with still only limited risk for bankruptcy at the moment.
HER has a Altman-Z score of 2.42. This is amongst the best in the industry. HER outperforms 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.
HER's Debt to FCF ratio of 27.04 is fine compared to the rest of the industry. HER outperforms 64.71% 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.
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 | 2.42 |
ROIC/WACC1.57
WACC5.38%
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 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 94.12% 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.
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.
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 Y7.54%
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.99 indicates a rather cheap valuation of HER.
Compared to the rest of the industry, the Price/Earnings ratio of HER indicates a rather cheap valuation: HER is cheaper than 82.35% 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 26.54.
The Price/Forward Earnings ratio is 12.20, which indicates a correct valuation of HER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 64.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. HER is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 12.2 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.21 | ||
| EV/EBITDA | 5.6 |
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)1.06
PEG (5Y)1.45
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.71%.
HER's Dividend Yield is slightly below the industry average, which is at 4.64.
Compared to an average S&P500 Dividend Yield of 2.27, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
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 (12/12/2025, 7:00:00 PM)
3.994
+0.04 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners21.83%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.95B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)5.74%
PT rev (3m)5.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.71%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 12.2 | ||
| P/S | 0.28 | ||
| P/FCF | 30.21 | ||
| P/OCF | 5.12 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.6 |
EPS(TTM)0.5
EY12.52%
EPS(NY)0.33
Fwd EY8.2%
FCF(TTM)0.13
FCFY3.31%
OCF(TTM)0.78
OCFY19.55%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.06
PEG (5Y)1.45
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 | 2.42 |
F-Score6
WACC5.38%
ROIC/WACC1.57
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 of HERA SPA (HER.MI) 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.
What is the financial health of HERA SPA (HER.MI) stock?
The financial health rating of HERA SPA (HER.MI) is 6 / 10.
How sustainable is the dividend of HERA SPA (HER.MI) stock?
The dividend rating of HERA SPA (HER.MI) is 5 / 10 and the dividend payout ratio is 36.07%.