HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
3.962 EUR
-0.01 (-0.35%)
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 an average financial health and profitability rating. HER is not valued too expensively and it also shows a decent growth rate.
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.
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
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.
Looking at the Return On Equity, with a value of 18.73%, HER belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
HER has a Return On Invested Capital of 8.42%. This is amongst the best in the industry. HER outperforms 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 6.16%.
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
HER has a worse Profit Margin (3.44%) than 70.59% of its industry peers.
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 82.35% of its industry peers.
HER's Operating Margin has declined in the last couple of years.
The Gross Margin of HER (43.42%) is better than 64.71% of its industry peers.
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
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.
The number of shares outstanding for HER has been reduced compared to 5 years ago.
HER has a worse debt/assets ratio than last year.
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's Altman-Z score of 2.42 is amongst the best of 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.
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.
The Debt to Equity ratio of HER (1.24) is better 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
WACC5.37%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HER should not have too much problems paying its short term obligations.
HER's Current ratio of 1.19 is amongst the best of the industry. HER outperforms 94.12% 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's Quick ratio of 1.12 is amongst the best of the industry. HER outperforms 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.
HER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
The Revenue has grown by 16.42% in the past year. This is quite good.
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
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.
HER is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.84% yearly.
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.
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
With a Price/Earnings ratio of 7.92, the valuation of HER can be described as very cheap.
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 26.59.
HER is valuated correctly with a Price/Forward Earnings ratio of 12.10.
64.71% of the companies in the same industry are more expensive than HER, based on the Price/Forward Earnings ratio.
HER is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HER is valued a bit cheaper than 64.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.97 | ||
| EV/EBITDA | 5.62 |
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)1.05
PEG (5Y)1.44
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
HER's Dividend Yield is slightly below the industry average, which is at 4.64.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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.
HER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.07%
EPS Next 2Y4.35%
EPS Next 3Y4.44%
BIT:HER (12/10/2025, 7:00:00 PM)
3.962
-0.01 (-0.35%)
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 Cap5.90B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (13.83%)
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 | 7.92 | ||
| Fwd PE | 12.1 | ||
| P/S | 0.28 | ||
| P/FCF | 29.97 | ||
| P/OCF | 5.07 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.62 |
EPS(TTM)0.5
EY12.62%
EPS(NY)0.33
Fwd EY8.27%
FCF(TTM)0.13
FCFY3.34%
OCF(TTM)0.78
OCFY19.71%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.05
PEG (5Y)1.44
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
WACC5.37%
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%.