HERA SPA (HER.MI) Stock Fundamental Analysis
BIT:HER - Euronext Milan - IT0001250932 - Common Stock - Currency: EUR
HER gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year HER was profitable.
HER had a positive operating cash flow in the past year.
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
HER's Return On Assets of 4.47% is amongst the best of the industry. HER outperforms 92.31% of its industry peers.
HER has a Return On Equity of 17.61%. This is amongst the best in the industry. HER outperforms 84.62% of its industry peers.
HER's Return On Invested Capital of 9.52% is amongst the best of the industry. HER outperforms 92.31% 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 6.72%.
The 3 year average ROIC (5.63%) for HER is below the current ROIC(9.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 17.61% | ||
| ROIC | 9.52% |
ROA(3y)2.26%
ROA(5y)2.65%
ROE(3y)10.26%
ROE(5y)10.95%
ROIC(3y)5.63%
ROIC(5y)5.56%
1.3 Margins
HER has a worse Profit Margin (3.39%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
HER has a worse Operating Margin (6.43%) than 76.92% of its industry peers.
In the last couple of years the Operating Margin of HER has declined.
The Gross Margin of HER (45.32%) is better than 69.23% of its industry peers.
HER's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 3.39% | ||
| GM | 45.32% |
OM growth 3Y-6.91%
OM growth 5Y-5.63%
PM growth 3Y-11.51%
PM growth 5Y-8.4%
GM growth 3Y-11.58%
GM growth 5Y-6.98%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HER has less shares outstanding
Compared to 1 year ago, HER has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.18 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HER (2.18) is better than 92.31% of its industry peers.
HER has a debt to FCF ratio of 31.96. This is a negative value and a sign of low solvency as HER would need 31.96 years to pay back of all of its debts.
HER has a Debt to FCF ratio (31.96) which is in line with its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that HER has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.30, HER is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 31.96 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.8
WACC5.29%
2.3 Liquidity
HER has a Current 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.
With a decent Current ratio value of 1.12, HER is doing good in the industry, outperforming 76.92% of the companies in the same industry.
HER has a Quick Ratio of 1.12. This is a bad value and indicates that HER is not financially healthy enough and could expect problems in meeting its short term obligations.
HER has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.63% over the past year.
HER shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
Looking at the last year, HER shows a very negative growth in Revenue. The Revenue has decreased by -34.92% in the last year.
HER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.42% yearly.
EPS 1Y (TTM)1.63%
EPS 3Y11.36%
EPS 5Y8.83%
EPS Q2Q%35.43%
Revenue 1Y (TTM)-34.92%
Revenue growth 3Y28.15%
Revenue growth 5Y19.42%
Sales Q2Q%-0.26%
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 2.71% on average per year.
The Revenue is expected to decrease by -4.66% on average over the next years.
EPS Next Y13.58%
EPS Next 2Y9.26%
EPS Next 3Y6.67%
EPS Next 5Y2.71%
Revenue Next Year-14.17%
Revenue Next 2Y-11.35%
Revenue Next 3Y-7.15%
Revenue Next 5Y-4.66%
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 8.76, the valuation of HER can be described as reasonable.
HER's Price/Earnings is on the same level as the industry average.
HER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 11.64, the valuation of HER can be described as very reasonable.
61.54% of the companies in the same industry are cheaper than HER, based on the Price/Forward Earnings ratio.
HER's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
HER's Enterprise Value to EBITDA is on the same level as the industry average.
HER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.34 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
HER's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HER may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)0.99
EPS Next 2Y9.26%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 5.81, HER's dividend is way lower than its industry peers. On top of this 92.31% of the companies listed in the same industry pay a better dividend than HER!
Compared to an average S&P500 Dividend Yield of 2.33, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of HER is nicely growing with an annual growth rate of 9.91%!
Dividend Growth(5Y)9.91%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.97% of the earnings are spent on dividend by HER. This is a bit on the high side, but may be sustainable.
The dividend of HER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.97%
EPS Next 2Y9.26%
EPS Next 3Y6.67%
BIT:HER (3/7/2025, 7:00:00 PM)
3.68
+0.1 (+2.91%)
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 Cap5.48B
Analysts80
Price Target4.04 (9.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend0.17
Dividend Growth(5Y)9.91%
DP41.97%
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)0.76%
PT rev (3m)2.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.19%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.3 | ||
| P/FCF | 33.34 | ||
| P/OCF | 5.34 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.42
EY11.41%
EPS(NY)0.32
Fwd EY8.59%
FCF(TTM)0.11
FCFY3%
OCF(TTM)0.69
OCFY18.74%
SpS12.13
BVpS2.34
TBVpS-1.55
PEG (NY)0.65
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 17.61% | ||
| ROCE | 12.62% | ||
| ROIC | 9.52% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 35.18% | ||
| OM | 6.43% | ||
| PM (TTM) | 3.39% | ||
| GM | 45.32% | ||
| FCFM | 0.91% |
ROA(3y)2.26%
ROA(5y)2.65%
ROE(3y)10.26%
ROE(5y)10.95%
ROIC(3y)5.63%
ROIC(5y)5.56%
ROICexc(3y)6.61%
ROICexc(5y)6.38%
ROICexgc(3y)21.96%
ROICexgc(5y)20.52%
ROCE(3y)7.56%
ROCE(5y)7.49%
ROICexcg growth 3Y19.31%
ROICexcg growth 5Y11.93%
ROICexc growth 3Y14.54%
ROICexc growth 5Y5.94%
OM growth 3Y-6.91%
OM growth 5Y-5.63%
PM growth 3Y-11.51%
PM growth 5Y-8.4%
GM growth 3Y-11.58%
GM growth 5Y-6.98%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 31.96 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 154.12% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | 6.52 | ||
| Cash Conversion | 59.65% | ||
| Profit Quality | 26.8% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.18 |
F-Score5
WACC5.29%
ROIC/WACC1.8
Cap/Depr(3y)142.85%
Cap/Depr(5y)132.46%
Cap/Sales(3y)4.86%
Cap/Sales(5y)5.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.63%
EPS 3Y11.36%
EPS 5Y8.83%
EPS Q2Q%35.43%
EPS Next Y13.58%
EPS Next 2Y9.26%
EPS Next 3Y6.67%
EPS Next 5Y2.71%
Revenue 1Y (TTM)-34.92%
Revenue growth 3Y28.15%
Revenue growth 5Y19.42%
Sales Q2Q%-0.26%
Revenue Next Year-14.17%
Revenue Next 2Y-11.35%
Revenue Next 3Y-7.15%
Revenue Next 5Y-4.66%
EBIT growth 1Y-17.15%
EBIT growth 3Y19.29%
EBIT growth 5Y12.7%
EBIT Next Year87.04%
EBIT Next 3Y24.78%
EBIT Next 5Y15.95%
FCF growth 1Y121.7%
FCF growth 3Y25.27%
FCF growth 5Y36.95%
OCF growth 1Y1337.71%
OCF growth 3Y20.83%
OCF growth 5Y20.4%