HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.083 EUR
-0.04 (-0.99%)
HER gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 17 industry peers in the Multi-Utilities industry. HER has only an average score on both its financial health and profitability. HER has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HER was profitable.
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 94.12% of its industry peers.
The Return On Equity of HER (18.73%) is better than 88.24% of its industry peers.
HER has a better Return On Invested Capital (8.42%) than 88.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HER is in line with the industry average of 6.00%.
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's Profit Margin of 3.44% is on the low side compared to the rest of the industry. HER is outperformed by 76.47% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
HER has a Operating Margin of 5.83%. This is amonst the worse of the industry: HER underperforms 88.24% of its industry peers.
HER's Operating Margin has declined in the last couple of years.
HER has a Gross Margin of 43.42%. This is in the better half of the industry: HER outperforms 64.71% of its industry peers.
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.
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 2.44 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
HER has a better Altman-Z score (2.44) than 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.
With a decent Debt to FCF ratio value of 27.04, HER is doing good in the industry, outperforming 64.71% 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's Debt to Equity ratio of 1.24 is fine compared to the rest of the industry. HER outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.55
WACC5.42%
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.
The Current ratio of HER (1.19) is better than 88.24% of its industry peers.
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 has a better Quick ratio (1.12) than 88.24% 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.
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 Y6.78%
EPS Next 2Y4.31%
EPS Next 3Y4.47%
EPS Next 5Y3.26%
Revenue Next Year-8.7%
Revenue Next 2Y-3.61%
Revenue Next 3Y-1.6%
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
Based on the Price/Earnings ratio of 8.17, the valuation of HER can be described as reasonable.
Based on the Price/Earnings ratio, HER is valued cheaper than 82.35% of the companies in the same industry.
HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 12.48, HER is valued correctly.
Based on the Price/Forward Earnings ratio, HER is valued a bit cheaper than 64.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (36.22), we can say HER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HER.
Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.89 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HER may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)1.48
EPS Next 2Y4.31%
EPS Next 3Y4.47%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 4.53, HER is paying slightly less dividend.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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
HER pays out 36.07% of its income as dividend. This is a 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 2Y4.31%
EPS Next 3Y4.47%
BIT:HER (12/3/2025, 2:03:43 PM)
4.083
-0.04 (-0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners21.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.08B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts75.56
Price Target4.37 (7.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)2.39%
PT rev (3m)2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.21%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 12.48 | ||
| P/S | 0.29 | ||
| P/FCF | 30.89 | ||
| P/OCF | 5.23 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.5
EY12.25%
EPS(NY)0.33
Fwd EY8.01%
FCF(TTM)0.13
FCFY3.24%
OCF(TTM)0.78
OCFY19.12%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.2
PEG (5Y)1.48
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
WACC5.42%
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 Y6.78%
EPS Next 2Y4.31%
EPS Next 3Y4.47%
EPS Next 5Y3.26%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%-2.69%
Revenue Next Year-8.7%
Revenue Next 2Y-3.61%
Revenue Next 3Y-1.6%
Revenue Next 5Y-1.84%
EBIT growth 1Y5.53%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year93.34%
EBIT Next 3Y27.46%
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%.