HERA SPA (HER.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:HER • IT0001250932
4.166 EUR
+0.03 (+0.82%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HER. These ratings could make HER a good candidate 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.
- In the past 5 years HER has always been profitable.
- Each year in the past 5 years HER had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of HER (5.12%) is better than 94.44% of its industry peers.
- HER has a better Return On Equity (18.73%) than 88.89% of its industry peers.
- HER has a better Return On Invested Capital (8.42%) than 94.44% 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 5.84%.
- 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
- With a Profit Margin value of 3.44%, HER is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of HER has declined.
- HER's Operating Margin of 5.83% is on the low side compared to the rest of the industry. HER is outperformed by 88.89% 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 61.11% 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
- 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.
- The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
- HER has an Altman-Z score of 2.44. 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.
- Looking at the Altman-Z score, with a value of 2.44, HER belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- 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.
- The Debt to Equity ratio of HER (1.24) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.53
WACC5.49%
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.
- A Quick Ratio of 1.12 indicates that HER should not have too much problems paying its short term obligations.
- HER has a Quick ratio of 1.12. This is amongst the best in 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
- The Earnings Per Share is expected to grow by 3.26% on average over the next years.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 8.33, which indicates a very decent valuation of HER.
- HER's Price/Earnings ratio is rather cheap when compared to the industry. HER is cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. HER is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 12.68, 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 rather cheap valuation: HER is cheaper than 88.89% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. HER is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- 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 | 31.52 | ||
| 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)1.51
EPS Next 2Y4.51%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- HER has a Yearly Dividend Yield of 3.63%.
- Compared to an average industry Dividend Yield of 4.21, HER is paying slightly less dividend.
- HER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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 2Y4.51%
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%.