HERA SPA (HER.MI) Stock Fundamental Analysis
Europe - BIT:HER - IT0001250932 - Common Stock
3.678 EUR
-0.01 (-0.27%)
Overall HER gets a fundamental rating of 6 out of 10. We evaluated HER against 13 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, HER could be worth investigating further for value investing!.
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.
HER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.05%, HER belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
HER has a better Return On Equity (19.06%) than 84.62% of its industry peers.
With an excellent Return On Invested Capital value of 8.49%, HER belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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 6.69%.
The 3 year average ROIC (5.37%) for HER is below the current ROIC(8.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.06% | ||
| ROIC | 8.49% |
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
The Profit Margin of HER (3.43%) is worse than 61.54% of its industry peers.
In the last couple of years the Profit Margin of HER has declined.
HER's Operating Margin of 5.81% is on the low side compared to the rest of the industry. HER is outperformed by 76.92% of its industry peers.
In the last couple of years the Operating Margin of HER has declined.
The Gross Margin of HER (43.17%) is better than 69.23% of its industry peers.
In the last couple of years the Gross Margin of HER has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.81% | ||
| PM (TTM) | 3.43% | ||
| GM | 43.17% |
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.
The number of shares outstanding for HER remains at a similar level compared to 1 year ago.
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 2.36. 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 2.36. This is amongst the best in the industry. HER outperforms 100.00% of its industry peers.
The Debt to FCF ratio of HER is 16.79, which is on the high side as it means it would take HER, 16.79 years of fcf income to pay off all of its debts.
HER's Debt to FCF ratio of 16.79 is fine compared to the rest of the industry. HER outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that HER has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.27, HER is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 16.79 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.6
WACC5.29%
2.3 Liquidity
HER has a Current Ratio of 1.16. 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 Current ratio of 1.16 is amongst the best of the industry. HER outperforms 84.62% of its industry peers.
HER has a Quick Ratio of 1.13. 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 1.13. This is amongst the best in the industry. HER outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.13% over the past year.
The Earnings Per Share has been growing slightly by 5.51% on average over the past years.
The Revenue has grown by 16.77% in the past year. This is quite good.
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)21.13%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%4.73%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%22.57%
3.2 Future
HER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.28% yearly.
The Revenue is expected to decrease by -1.75% on average over the next years.
EPS Next Y7.59%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
EPS Next 5Y3.28%
Revenue Next Year-7.73%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.75%
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
Based on the Price/Earnings ratio of 7.36, the valuation of HER can be described as very cheap.
Based on the Price/Earnings ratio, HER is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
HER is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.13, the valuation of HER can be described as reasonable.
Based on the Price/Forward Earnings ratio, HER is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. HER is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 11.13 |
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 69.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HER is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 5.2 |
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)0.97
PEG (5Y)1.33
EPS Next 2Y4.82%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
HER has a Yearly Dividend Yield of 4.08%, which is a nice return.
With a Dividend Yield of 4.08, HER pays less dividend than the industry average, which is at 5.17. 84.62% of the companies listed in the same industry pay a better dividend than HER!
Compared to an average S&P500 Dividend Yield of 2.38, HER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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
38.25% of the earnings are spent on dividend by HER. This is a low number and sustainable payout ratio.
HER's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.25%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
BIT:HER (9/17/2025, 7:00:00 PM)
3.678
-0.01 (-0.27%)
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 Cap5.48B
Analysts75.56
Price Target4.26 (15.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend0.17
Dividend Growth(5Y)9.46%
DP38.25%
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)-0.95%
PT rev (3m)0.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.36%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 11.13 | ||
| P/S | 0.26 | ||
| P/FCF | 16.62 | ||
| P/OCF | 4.35 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.2 |
EPS(TTM)0.5
EY13.59%
EPS(NY)0.33
Fwd EY8.99%
FCF(TTM)0.22
FCFY6.02%
OCF(TTM)0.85
OCFY22.99%
SpS14.17
BVpS2.55
TBVpS-1.48
PEG (NY)0.97
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.06% | ||
| ROCE | 12.64% | ||
| ROIC | 8.49% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 34.5% | ||
| OM | 5.81% | ||
| PM (TTM) | 3.43% | ||
| GM | 43.17% | ||
| FCFM | 1.56% |
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%
ROICexcg growth 3Y12.09%
ROICexcg 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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 16.79 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 161.02% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 69.79% | ||
| Profit Quality | 45.56% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.36 |
F-Score6
WACC5.29%
ROIC/WACC1.6
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)21.13%
EPS 3Y13.92%
EPS 5Y5.51%
EPS Q2Q%4.73%
EPS Next Y7.59%
EPS Next 2Y4.82%
EPS Next 3Y4.27%
EPS Next 5Y3.28%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y6.89%
Revenue growth 5Y13.27%
Sales Q2Q%22.57%
Revenue Next Year-7.73%
Revenue Next 2Y-3.91%
Revenue Next 3Y-2.2%
Revenue Next 5Y-1.75%
EBIT growth 1Y6.28%
EBIT growth 3Y10.46%
EBIT growth 5Y8.88%
EBIT Next Year96.01%
EBIT Next 3Y27.74%
EBIT Next 5Y20.54%
FCF growth 1Y311.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.43%
OCF growth 3Y-6.56%
OCF growth 5Y3.17%