HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
4.14 EUR
-0.05 (-1.24%)
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 18 industry peers in the Multi-Utilities industry. HER has an average financial health and profitability rating. HER has a decent growth rate and is not valued too expensively.
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.
In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HER (5.12%) is better than 94.44% of its industry peers.
HER has a Return On Equity of 18.73%. This is amongst the best in the industry. HER outperforms 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 8.42%, HER belongs to the best of the industry, outperforming 88.89% 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 5.80%.
The last Return On Invested Capital (8.42%) for HER is above the 3 year average (5.37%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 3.44%, HER is doing worse than 77.78% of the companies in the same industry.
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 88.89% of its industry peers.
In the last couple of years the Operating Margin of HER has declined.
With a decent Gross Margin value of 43.42%, HER is doing good in the industry, outperforming 61.11% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HER is still creating some value.
Compared to 1 year ago, HER has about the same amount of shares outstanding.
HER has less shares outstanding than it did 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 2.44. 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 2.44. This is amongst the best in 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.
Looking at the Debt to FCF ratio, with a value of 27.04, HER is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that HER has dependencies on debt financing.
The Debt to Equity ratio of HER (1.24) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.55
WACC5.44%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HER should not have too much problems paying its short term obligations.
HER has a Current ratio of 1.19. This is amongst the best in the industry. HER outperforms 88.89% 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 94.44% 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.
Measured over the past 5 years, HER shows a small growth in Earnings Per Share. The EPS has been growing by 5.51% on average per year.
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
The Earnings Per Share is expected to grow by 3.26% on average over the next years.
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.
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
HER is valuated reasonably with a Price/Earnings ratio of 8.28.
Based on the Price/Earnings ratio, HER is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
HER is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.64, the valuation of HER can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 72.22% of the companies listed in the same industry.
HER is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HER indicates a somewhat cheap valuation: HER is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.32 | ||
| EV/EBITDA | 5.8 |
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)1.1
PEG (5Y)1.5
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, HER has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.52, HER is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.90, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 2Y4.35%
EPS Next 3Y4.44%
BIT:HER (1/9/2026, 7:00:00 PM)
4.14
-0.05 (-1.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners22.33%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.17B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (8.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)3.27%
PT rev (3m)5.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 12.64 | ||
| P/S | 0.29 | ||
| P/FCF | 31.32 | ||
| P/OCF | 5.3 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)0.5
EY12.08%
EPS(NY)0.33
Fwd EY7.91%
FCF(TTM)0.13
FCFY3.19%
OCF(TTM)0.78
OCFY18.86%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.1
PEG (5Y)1.5
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
WACC5.44%
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 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 for HER 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.
Can you provide the financial health for HER stock?
The financial health rating of HERA SPA (HER.MI) is 6 / 10.
Is the dividend of HERA SPA sustainable?
The dividend rating of HERA SPA (HER.MI) is 5 / 10 and the dividend payout ratio is 36.07%.