HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HER - IT0001250932 - Common Stock
3.992 EUR
+0 (+0.1%)
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. Both the profitability and the financial health of HER get a neutral evaluation. Nothing too spectacular is happening here. HER has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 5.12%, HER belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
HER has a better Return On Equity (18.73%) than 88.89% of its industry peers.
HER's Return On Invested Capital of 8.42% is amongst the best of the industry. HER outperforms 88.89% 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 5.73%.
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
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.
HER's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.83%, HER is doing worse than 88.89% of the companies in the same industry.
HER's Operating Margin has declined in the last couple of years.
The Gross Margin of HER (43.42%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HER has declined.
| 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.
The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HER has less shares outstanding
The debt/assets ratio for HER is higher compared to a year ago.
2.2 Solvency
HER has an Altman-Z score of 2.43. 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 better Altman-Z score (2.43) than 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.
The Debt to FCF ratio of HER (27.04) is better than 72.22% of its industry peers.
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 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.57
WACC5.38%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HER should not have too much problems paying its short term obligations.
The Current ratio of HER (1.19) is better than 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 Quick ratio of 1.12. This is amongst the best in the industry. HER outperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
HER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.73%, which is quite good.
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.
HER shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.42%.
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
The Earnings Per Share is expected to grow by 3.26% on average over the next years.
Based on estimates for the next years, HER will show a decrease in Revenue. The Revenue will decrease by -1.84% on average per year.
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
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
A Price/Earnings ratio of 7.98 indicates a rather cheap valuation of HER.
83.33% of the companies in the same industry are more expensive than HER, based on the Price/Earnings ratio.
HER is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.19, which indicates a correct valuation of HER.
HER's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HER is cheaper than 77.78% of the companies in the same industry.
HER is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
72.22% of the companies in the same industry are more expensive than HER, based on the Enterprise Value to EBITDA ratio.
HER's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HER is cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 5.63 |
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)1.06
PEG (5Y)1.45
EPS Next 2Y4.35%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.49, HER is paying slightly less dividend.
HER's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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
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 (12/23/2025, 7:00:00 PM)
3.992
+0 (+0.1%)
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 Cap5.95B
Revenue(TTM)21.04B
Net Income(TTM)724.50M
Analysts80
Price Target4.51 (12.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)0.71%
EPS NY rev (3m)0.92%
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 | 7.98 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.28 | ||
| P/FCF | 30.2 | ||
| P/OCF | 5.11 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)0.5
EY12.53%
EPS(NY)0.33
Fwd EY8.2%
FCF(TTM)0.13
FCFY3.31%
OCF(TTM)0.78
OCFY19.56%
SpS14.13
BVpS2.6
TBVpS-1.49
PEG (NY)1.06
PEG (5Y)1.45
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 | 2.43 |
F-Score6
WACC5.38%
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%.