BIT:ERGRenewable Energy
ERG (BIT:ERG) Stock Grapples With Profit Squeeze And Thin Dividend Cover
ERG stock has been grinding lower in recent weeks, with the shares down about 7% over the past month even before investors digested the latest numbers. The headline from this earnings release is margin pressure. Trailing net profit margin sits at 13.4% compared with 21.9% a year earlier, after a one off €87.7m loss pulled reported profitability down.
For a renewable power producer that relies on cash yield from long lived assets, that squeeze on margins and a dividend that is not well covered...