HERA SPA (HER.MI) Stock Fundamental Analysis
BIT:HER - Euronext Milan - IT0001250932 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to HER. HER was compared to 13 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years HER had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HER (4.66%) is better than 92.31% of its industry peers.
HER has a Return On Equity of 19.08%. This is in the better half of the industry: HER outperforms 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 9.01%, HER belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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 6.93%.
The last Return On Invested Capital (9.01%) for HER is above the 3 year average (5.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 19.08% | ||
| ROIC | 9.01% |
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 3.73%. This is in the lower half of the industry: HER underperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
Looking at the Operating Margin, with a value of 6.53%, HER is doing worse than 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of HER has declined.
HER has a Gross Margin of 46.07%. This is in the better half of the industry: HER outperforms 69.23% of its industry peers.
HER's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.53% | ||
| PM (TTM) | 3.73% | ||
| GM | 46.07% |
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.
HER has less shares outstanding than it did 5 years ago.
HER has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.08 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.08, HER belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that HER has dependencies on debt financing.
HER has a better Debt to Equity ratio (1.19) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.08 |
ROIC/WACC1.6
WACC5.64%
2.3 Liquidity
A Current Ratio of 1.05 indicates that HER should not have too much problems paying its short term obligations.
HER has a Current ratio of 1.05. This is comparable to the rest of the industry: HER outperforms 53.85% of its industry peers.
A Quick Ratio of 1.02 indicates that HER should not have too much problems paying its short term obligations.
HER's Quick ratio of 1.02 is fine compared to the rest of the industry. HER outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.21% over the past year.
The Earnings Per Share has been growing slightly by 5.51% on average over the past years.
The Revenue for HER has decreased by -18.80% in the past year. This is quite bad
Measured over the past years, HER shows a quite strong growth in Revenue. The Revenue has been growing by 13.27% on average per year.
EPS 1Y (TTM)6.21%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%47.38%
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%11.41%
3.2 Future
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.01% yearly.
HER is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.23% yearly.
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5YN/A
Revenue Next Year-8.44%
Revenue Next 2Y-3.43%
Revenue Next 3Y-2.56%
Revenue Next 5Y-3.23%
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 8.29, the valuation of HER can be described as reasonable.
HER's Price/Earnings ratio is a bit cheaper when compared to the industry. HER is cheaper than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. HER is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.85 indicates a correct valuation of HER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HER is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.38. HER is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HER is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.56 |
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)1.62
PEG (5Y)1.5
EPS Next 2Y3.09%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.74, HER pays less dividend than the industry average, which is at 5.37. 84.62% of the companies listed in the same industry pay a better dividend than HER!
HER's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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
35.44% 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.
DP35.44%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
BIT:HER (4/25/2025, 7:00:00 PM)
4.062
+0.02 (+0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners22.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.05B
Analysts77.78
Price Target4.18 (2.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP35.44%
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)3.54%
PT rev (3m)5.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)7.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 12.85 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.56 |
EPS(TTM)0.49
EY12.06%
EPS(NY)0.32
Fwd EY7.78%
FCF(TTM)0
FCFYN/A
OCF(TTM)0.57
OCFY14.1%
SpS12.64
BVpS2.47
TBVpS-1.48
PEG (NY)1.62
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 19.08% | ||
| ROCE | 13.49% | ||
| ROIC | 9.01% | ||
| ROICexc | 10.53% | ||
| ROICexgc | 40.75% | ||
| OM | 6.53% | ||
| PM (TTM) | 3.73% | ||
| GM | 46.07% | ||
| FCFM | N/A |
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)22.5%
ROICexgc(5y)21.03%
ROCE(3y)8.03%
ROCE(5y)7.84%
ROICexcg growth 3Y12.18%
ROICexcg growth 5Y12.92%
ROICexc growth 3Y6.55%
ROICexc growth 5Y6.36%
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-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 152.7% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 6.38 | ||
| Cash Conversion | 47.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.08 |
F-Score7
WACC5.64%
ROIC/WACC1.6
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)6.21%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%47.38%
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%11.41%
Revenue Next Year-8.44%
Revenue Next 2Y-3.43%
Revenue Next 3Y-2.56%
Revenue Next 5Y-3.23%
EBIT growth 1Y-18.1%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year94.92%
EBIT Next 3Y27.69%
EBIT Next 5Y19.38%
FCF growth 1Y-100.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.76%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%