HERA SPA (HER.MI) Stock Fundamental Analysis
BIT:HER - Euronext Milan - IT0001250932 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to HER. HER was compared to 13 industry peers in the Multi-Utilities industry. HER has only an average score on both its financial health and profitability. HER has a valuation in line with the averages, 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.
HER had positive earnings in each of the past 5 years.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.62%, HER belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
HER has a Return On Equity of 18.36%. This is in the better half of the industry: HER outperforms 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.50%, HER belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HER is in line with the industry average of 6.44%.
The last Return On Invested Capital (8.50%) for HER is above the 3 year average (5.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 18.36% | ||
| ROIC | 8.5% |
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 (3.59%) is worse than 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 6.19%, HER is doing worse than 84.62% of the companies in the same industry.
HER's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.53%, HER is doing good in the industry, outperforming 69.23% 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 | 6.19% | ||
| PM (TTM) | 3.59% | ||
| GM | 44.53% |
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.
Compared to 1 year ago, HER has about the same amount of shares outstanding.
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 2.16. 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 2.16. This is amongst the best in the industry. HER outperforms 100.00% of its industry peers.
The Debt to FCF ratio of HER is 36.37, which is on the high side as it means it would take HER, 36.37 years of fcf income to pay off all of its debts.
HER has a worse Debt to FCF ratio (36.37) than 69.23% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that HER has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.22, HER is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 36.37 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.55
WACC5.5%
2.3 Liquidity
A Current Ratio of 1.17 indicates that HER should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, HER is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
HER has a Quick Ratio of 1.16. 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 Quick ratio of 1.16. This is amongst the best in the industry. HER outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.58% over the past year.
The Earnings Per Share has been growing slightly by 5.51% on average over the past years.
Looking at the last year, HER shows a decrease in Revenue. The Revenue has decreased by -4.70% 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)16.58%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%6.75%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%31.51%
3.2 Future
The Earnings Per Share is expected to grow by 3.32% on average over the next years.
The Revenue is expected to decrease by -1.72% on average over the next years.
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5Y3.32%
Revenue Next Year-7.12%
Revenue Next 2Y-3.46%
Revenue Next 3Y-4.02%
Revenue Next 5Y-1.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 8.10, the valuation of HER can be described as very 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.
HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 12.41, which indicates a correct valuation of HER.
The rest of the industry has a similar Price/Forward Earnings ratio as HER.
When comparing the Price/Forward Earnings ratio of HER to the average of the S&P500 Index (21.90), we can say HER is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
HER's Enterprise Value to EBITDA ratio is in line with the industry average.
69.23% of the companies in the same industry are cheaper than HER, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.91 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
HER's 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)1.59
PEG (5Y)1.47
EPS Next 2Y3.09%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, HER has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.69, HER pays less dividend than the industry average, which is at 5.12. 84.62% of the companies listed in the same industry pay a better dividend than HER!
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 34.91% 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.
DP34.91%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
BIT:HER (7/4/2025, 9:53:02 AM)
3.968
0 (0%)
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 Cap5.91B
Analysts75.56
Price Target4.3 (8.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP34.91%
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)2.93%
PT rev (3m)6.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 12.41 | ||
| P/S | 0.3 | ||
| P/FCF | 35.91 | ||
| P/OCF | 5.58 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.49
EY12.35%
EPS(NY)0.32
Fwd EY8.06%
FCF(TTM)0.11
FCFY2.78%
OCF(TTM)0.71
OCFY17.93%
SpS13.33
BVpS2.61
TBVpS-1.37
PEG (NY)1.59
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 18.36% | ||
| ROCE | 12.51% | ||
| ROIC | 8.5% | ||
| ROICexc | 10.57% | ||
| ROICexgc | 42.24% | ||
| OM | 6.19% | ||
| PM (TTM) | 3.59% | ||
| GM | 44.53% | ||
| FCFM | 0.83% |
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-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 36.37 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 157.45% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 58.91% | ||
| Profit Quality | 23.1% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.16 |
F-Score6
WACC5.5%
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)16.58%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%6.75%
EPS Next Y5.1%
EPS Next 2Y3.09%
EPS Next 3Y3.01%
EPS Next 5Y3.32%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%31.51%
Revenue Next Year-7.12%
Revenue Next 2Y-3.46%
Revenue Next 3Y-4.02%
Revenue Next 5Y-1.72%
EBIT growth 1Y-7.1%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year96.01%
EBIT Next 3Y27.74%
EBIT Next 5Y20.75%
FCF growth 1Y129.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.15%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%