HERA SPA (HER.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:HER • IT0001250932
4.214 EUR
+0.05 (+1.15%)
Last: Feb 2, 2026, 03:47 PM
Taking everything into account, HER scores 6 out of 10 in our fundamental rating. HER was compared to 17 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 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.
- In the past 5 years HER has always been profitable.
- In the past 5 years HER always reported a positive cash flow from operatings.
1.2 Ratios
- HER has a better Return On Assets (5.12%) than 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.
- The Return On Invested Capital of HER (8.42%) is better than 94.12% of its industry peers.
- HER had an Average Return On Invested Capital over the past 3 years of 5.37%. This is in line with the industry average of 5.95%.
- 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's Profit Margin of 3.44% is on the low side compared to the rest of the industry. HER is outperformed by 76.47% of its industry peers.
- HER's Profit Margin has declined in the last couple of years.
- HER's Operating Margin of 5.83% is on the low side compared to the rest of the industry. HER is outperformed by 88.24% of its industry peers.
- HER's Operating Margin has declined in the last couple of years.
- HER has a Gross Margin (43.42%) which 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HER is creating some value.
- The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
- HER has less shares outstanding than it did 5 years ago.
- HER has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.44 indicates that HER is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of HER (2.44) is better 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.
- HER has a Debt to FCF ratio of 27.04. This is in the better half of the industry: HER outperforms 70.59% of its industry peers.
- A Debt/Equity ratio of 1.24 is on the high side and indicates that HER has dependencies on debt financing.
- HER has a Debt to Equity ratio of 1.24. This is in the better half of the industry: HER outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 27.04 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.53
WACC5.49%
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 88.24% 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.
- The Quick ratio of HER (1.12) is better than 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
- 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 Y7.79%
EPS Next 2Y4.51%
EPS Next 3Y4.54%
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 8.43.
- HER's Price/Earnings ratio is rather cheap when compared to the industry. HER is cheaper than 88.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, HER is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.83, HER is valued correctly.
- Based on the Price/Forward Earnings ratio, HER is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. HER is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 12.83 |
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 64.71% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.88 | ||
| EV/EBITDA | 5.77 |
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)1.08
PEG (5Y)1.53
EPS Next 2Y4.51%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- HER has a Yearly Dividend Yield of 3.63%.
- Compared to an average industry Dividend Yield of 4.26, HER is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.83, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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 2Y4.51%
EPS Next 3Y4.54%
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 7 / 10 to HERA SPA (HER.MI). This can be considered as Undervalued.
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%.