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ERG

BIT:ERG
Snowflake Description

Established dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERG
BIT
€3B
Market Cap
  1. Home
  2. IT
  3. Utilities
Company description

ERG S.p.A., through its subsidiaries, produces energy through renewable sources in Italy, France, Germany, Poland, Bulgaria, Romania, and the United Kingdom. The last earnings update was 101 days ago. More info.


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ERG Share Price and Events
7 Day Returns
2.2%
BIT:ERG
-1.1%
IT Renewable Energy
0.4%
IT Market
1 Year Returns
4%
BIT:ERG
1.6%
IT Renewable Energy
-8.9%
IT Market
ERG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ERG (ERG) 2.2% -0.6% 8% 4% 55.8% 71.3%
IT Renewable Energy -1.1% -1.8% 8.8% 1.6% 57.8% 5.8%
IT Market 0.4% 3.5% 7.4% -8.9% -7.1% -33.2%
1 Year Return vs Industry and Market
  • ERG outperformed the Renewable Energy industry which returned 1.6% over the past year.
  • ERG outperformed the Market in Italy which returned -8.9% over the past year.
Price Volatility
ERG
Industry
5yr Volatility vs Market

Value

 Is ERG undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ERG to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for ERG.

BIT:ERG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year IT Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:ERG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 7.1%
Renewable Energy Unlevered Beta Simply Wall St/ S&P Global 0.44
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.437 (1 + (1- 24%) (85.13%))
0.72
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (0.8 * 7.07%)
8.59%

Discounted Cash Flow Calculation for BIT:ERG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ERG is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

BIT:ERG DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (EUR, Millions) 234.74 301.14 134.00 275.00 231.00
Source Analyst x3 Analyst x2 Analyst x1 Analyst x1 Est @ -16%, capped from -29.78%
Present Value
Discounted (@ 8.59%)
216.18 255.40 104.66 197.80 153.01
Present value of next 5 years cash flows €927.05
BIT:ERG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= €231.00 × (1 + 2.93%) ÷ (8.59% – 2.93%)
€4,206.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= €4,206.37 ÷ (1 + 8.59%)5
€2,786.26
BIT:ERG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= €927.05 + €2,786.26
€3,713.31
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €3,713.31 / 148.82
€24.95
BIT:ERG Discount to Share Price
Calculation Result
Value per share (EUR) From above. €24.95
Current discount Discount to share price of €17.37
= -1 x (€17.37 - €24.95) / €24.95
30.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ERG is available for.
Intrinsic value
30%
Share price is €17.37 vs Future cash flow value of €24.95
Current Discount Checks
For ERG to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ERG's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ERG's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ERG's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ERG's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:ERG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in EUR €0.74
BIT:ERG Share Price ** BIT (2019-02-22) in EUR €17.37
Italy Renewable Energy Industry PE Ratio Median Figure of 8 Publicly-Listed Renewable Energy Companies 23.37x
Italy Market PE Ratio Median Figure of 238 Publicly-Listed Companies 15.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ERG.

BIT:ERG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:ERG Share Price ÷ EPS (both in EUR)

= 17.37 ÷ 0.74

23.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERG is overvalued based on earnings compared to the IT Renewable Energy industry average.
  • ERG is overvalued based on earnings compared to the Italy market.
Price based on expected Growth
Does ERG's expected growth come at a high price?
Raw Data
BIT:ERG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
5.5%per year
Italy Renewable Energy Industry PEG Ratio Median Figure of 5 Publicly-Listed Renewable Energy Companies 1.51x
Italy Market PEG Ratio Median Figure of 164 Publicly-Listed Companies 1.13x

*Line of best fit is calculated by linear regression .

BIT:ERG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.45x ÷ 5.5%

4.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERG is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ERG's assets?
Raw Data
BIT:ERG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in EUR €12.15
BIT:ERG Share Price * BIT (2019-02-22) in EUR €17.37
Italy Renewable Energy Industry PB Ratio Median Figure of 10 Publicly-Listed Renewable Energy Companies 1.51x
Italy Market PB Ratio Median Figure of 306 Publicly-Listed Companies 1.44x
BIT:ERG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:ERG Share Price ÷ Book Value per Share (both in EUR)

= 17.37 ÷ 12.15

1.43x

* Primary Listing of ERG.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERG is good value based on assets compared to the IT Renewable Energy industry average.
X
Value checks
We assess ERG's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Renewable Energy industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Renewable Energy industry average (and greater than 0)? (1 check)
  5. ERG has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ERG expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ERG expected to grow at an attractive rate?
  • ERG's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • ERG's earnings growth is positive but not above the Italy market average.
  • ERG's revenue growth is positive but not above the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:ERG Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:ERG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 5.5%
BIT:ERG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 0.4%
Italy Renewable Energy Industry Earnings Growth Rate Market Cap Weighted Average 8%
Italy Renewable Energy Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
Italy Market Earnings Growth Rate Market Cap Weighted Average 9.6%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:ERG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:ERG Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,122 145 2
2021-12-31 1,086 126 2
2020-12-31 1,107 403 114 4
2019-12-31 1,087 399 114 5
2018-12-31 1,104 415 113 4
BIT:ERG Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-09-30 1,079 302 111
2018-06-30 1,053 329 110
2018-03-31 1,046 384 109
2017-12-31 1,062 400 107
2017-09-30 1,033 495 93
2017-06-30 1,036 502 97
2017-03-31 1,040 461 104
2016-12-31 1,036 382 97
2016-09-30 995 380 47
2016-06-30 977 230 23
2016-03-31 958 131 31
2015-12-31 929 189 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ERG's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • ERG's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:ERG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from ERG Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:ERG Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.97 0.97 0.97 1.00
2021-12-31 0.89 0.89 0.89 1.00
2020-12-31 0.85 0.94 0.79 3.00
2019-12-31 0.76 0.85 0.57 5.00
2018-12-31 0.75 0.78 0.73 3.00
BIT:ERG Past Financials Data
Date (Data in EUR Millions) EPS *
2018-09-30
2018-06-30 0.74
2018-03-31
2017-12-31 0.72
2017-09-30
2017-06-30 0.66
2017-03-31
2016-12-31 0.67
2016-09-30
2016-06-30 0.16
2016-03-31
2015-12-31 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ERG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ERG's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Italy market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Italy market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ERG has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ERG performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ERG's growth in the last year to its industry (Renewable Energy).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ERG has delivered over 20% year on year earnings growth in the past 5 years.
  • ERG's 1-year earnings growth is less than its 5-year average (19.1% vs 65.7%)
  • ERG's earnings growth has not exceeded the Europe Renewable Energy industry average in the past year (19.1% vs 24.4%).
Earnings and Revenue History
ERG's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ERG Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:ERG Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 1,078.93 111.03 94.25
2018-06-30 1,052.63 110.23 93.55
2018-03-31 1,045.83 109.13 94.15
2017-12-31 1,061.93 107.23 94.75
2017-09-30 1,032.70 93.20 92.72
2017-06-30 1,036.30 96.90 92.12
2017-03-31 1,040.20 103.50 92.92
2016-12-31 1,035.50 96.90 92.32
2016-09-30 995.46 47.23 72.68
2016-06-30 976.86 23.43 72.38
2016-03-31 958.16 31.03 80.68
2015-12-31 928.56 21.13 66.08
2015-09-30 4,722.73 -28.44 33.81
2015-06-30 982.31 17.20 -7.29
2014-12-31 1,016.09 -40.77 0.51
2014-09-30 266.44 -44.67 99.07
2014-06-30 1,831.54 -43.47 99.07
2014-03-31 4,238.88 13.18 87.00
2013-12-31 4,521.86 -52.50 65.57
2013-09-30 3,771.39 -201.23 76.14
2013-06-30 3,965.49 36.97 76.14
2013-03-31 4,333.79 -9.23 76.14
2012-12-31 5,236.49 -15.03 76.14
2012-09-30 8,445.81 147.70 85.00
2012-06-30 8,138.11 -94.11 85.00
2012-03-31 7,788.01 81.00 85.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ERG has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ERG used its assets less efficiently than the IT Renewable Energy industry average last year based on Return on Assets.
  • ERG's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ERG's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Renewable Energy industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ERG has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ERG's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ERG's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ERG is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ERG's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ERG's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ERG Company Filings, last reported 4 months ago.

BIT:ERG Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,819.30 2,200.50 774.50
2018-06-30 1,808.97 2,213.29 666.49
2018-03-31 1,967.90 2,286.20 1,020.90
2017-12-31 1,877.47 2,076.37 813.13
2017-09-30 1,782.50 2,103.70 733.70
2017-06-30 1,752.59 2,039.56 497.15
2017-03-31 1,804.70 2,093.40 629.10
2016-12-31 1,729.10 2,093.16 507.33
2016-09-30 1,611.50 2,190.70 513.70
2016-06-30 1,593.07 2,218.33 360.23
2016-03-31 1,712.70 2,338.90 597.60
2015-12-31 1,676.30 2,311.28 770.56
2015-09-30 1,725.30 470.90
2015-06-30 1,733.91 1,473.32 1,041.58
2014-12-31 1,718.85 1,558.27 1,169.36
2014-09-30 1,806.00 1,609.60 1,222.90
2014-06-30 1,809.00 1,842.75 801.94
2014-03-31 2,080.90 1,937.20 1,192.90
2013-12-31 2,013.56 1,858.06 977.27
2013-09-30 1,979.60 2,037.40 748.30
2013-06-30 1,955.38 2,137.68 904.48
2013-03-31 2,012.80 2,357.80 848.00
2012-12-31 1,971.10 1,549.19 1,036.58
2012-09-30 2,003.70 1,549.40 866.60
2012-06-30 1,753.49 1,603.04 439.13
2012-03-31 1,907.20 1,698.50 620.00
  • ERG's level of debt (121%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (102.8% vs 121% today).
  • Debt is not well covered by operating cash flow (13.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
X
Financial health checks
We assess ERG's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ERG has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ERG's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.32%
Current annual income from ERG dividends. Estimated to be 4.32% next year.
If you bought €2,000 of ERG shares you are expected to receive €86 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ERG's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.04%).
  • ERG's dividend is above the markets top 25% of dividend payers in Italy (4.28%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:ERG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Italy Renewable Energy Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.7%
Italy Market Average Dividend Yield Market Cap Weighted Average of 172 Stocks 4.2%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.1%
Italy Bottom 25% Dividend Yield 25th Percentile 2%
Italy Top 25% Dividend Yield 75th Percentile 4.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:ERG Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.75 2.00
2021-12-31 0.75 2.00
2020-12-31 0.75 5.00
2019-12-31 0.75 6.00
2018-12-31 0.75 6.00
BIT:ERG Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-04-03 0.750 4.198
2018-03-08 0.750 3.925
2017-03-10 0.500 3.703
2016-04-12 0.500 4.851
2016-03-23 0.500 4.247
2015-03-23 0.500 4.206
2015-03-12 0.500 4.316
2014-03-24 0.500 4.787
2014-03-12 0.500 4.441
2013-03-08 0.400 4.888
2012-03-07 0.400 6.852
2011-03-08 0.400 4.476
2010-04-15 0.400 4.009
2009-03-11 0.400 3.979
2009-02-24 0.400 4.340

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ERG's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess ERG's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ERG afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ERG has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ERG's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Luca Bettonte
COMPENSATION €5,819,087
AGE 55
TENURE AS CEO 6.8 years
CEO Bio

Mr. Luca Bettonte serves as the Chief Executive Officer of ERG SpA since April 2012 and has been its Executive Director since December 15, 2009. Mr. Bettonte serves as an Executive Director at ERG Renew SpA. He served as a General Manager of Corporate at ERG SpA since December 15, 2009 and served as its Chief Corporate Officer since December 15, 2005 and also its General Manager. Mr. Bettonte served as the Chief Financial Officer of ERG SpA since November 20, 2007 and was responsible for administration, finance, risk management and investor relations. He served as the Chief Financial Officer of Atlantia SpA (formerly, Autostrade) from October 7, 2003 to November 9, 2007 and also served as its Director of Administration, Finance and Investor Relations until November 9, 2007. He served as a Director of Salini Impregilo S.p.A. from May 3, 2007 to November 21, 2007. He served as a Director of Impregilo SpA from May 03, 2007 to November 21, 2007. Mr. Bettonte is a Certified Public Accountant. He graduated in Business and Economics from Universita' di Bologna.

CEO Compensation
  • Luca's compensation has been consistent with company performance over the past year.
  • Luca's remuneration is higher than average for companies of similar size in Italy.
Management Team Tenure

Average tenure and age of the ERG management team in years:

5.1
Average Tenure
55
Average Age
  • The average tenure for the ERG management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Edoardo Garrone

TITLE
Founder & Executive Chairman
COMPENSATION
€1M
AGE
57

Luca Bettonte

TITLE
CEO & Executive Director
COMPENSATION
€6M
AGE
55
TENURE
6.8 yrs

Alessandro Garrone

TITLE
Executive Deputy Chairman
COMPENSATION
€3M
AGE
55

Paolo Merli

TITLE
Chief Financial Officer
AGE
47
TENURE
4.9 yrs

Pietro Tittoni

TITLE
Chief Operating Officer
AGE
61

Andrea Navarra

TITLE
General Counsel
AGE
42

Lucia Bormida

TITLE
Chief Public Affairs & Communication Officer
AGE
51

Alberto Fusi

TITLE
Chief Human Capital & ICT Officer
AGE
55

Giorgio Coraggioso

TITLE
Managing Director of ERG Services
AGE
53
TENURE
5.1 yrs

Giovanni Scollo

TITLE
Head of Corporate Affairs & Secretary
Board of Directors Tenure

Average tenure and age of the ERG board of directors in years:

3.8
Average Tenure
55
Average Age
  • The tenure for the ERG board of directors is about average.
Board of Directors

Edoardo Garrone

TITLE
Founder & Executive Chairman
COMPENSATION
€1M
AGE
57
TENURE
3.8 yrs

Luca Bettonte

TITLE
CEO & Executive Director
COMPENSATION
€6M
AGE
55
TENURE
3.8 yrs

Giovanni Mondini

TITLE
Deputy Chairman of the Board
COMPENSATION
€364K
AGE
52
TENURE
3.8 yrs

Alessandro Garrone

TITLE
Executive Deputy Chairman
COMPENSATION
€3M
AGE
55
TENURE
3.8 yrs

Riccardo Garrone

TITLE
Honorary Chairman
COMPENSATION
€50K

Mara Anna Caverni

TITLE
Independent Director
COMPENSATION
€90K
AGE
56
TENURE
3.8 yrs

Silvia Merlo

TITLE
Independent Director
COMPENSATION
€60K
AGE
50
TENURE
3.8 yrs

Elena Spagnol

TITLE
Chairman of Board of Statutory Auditors
AGE
50
TENURE
2.8 yrs

Massimo Belcredi

TITLE
Lead Independent Director
COMPENSATION
€115K
AGE
56
TENURE
2.8 yrs

Paolo Lanzoni

TITLE
Independent Director
COMPENSATION
€151K
AGE
65
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess ERG's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ERG has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Did ERG S.p.A.'s (BIT:ERG) 6.1% ROE Fare Against The Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows ERG has a return on equity of 6.1% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Could The ERG S.p.A. (BIT:ERG) Ownership Structure Tell Us Something Useful?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that. … institutions are noticeable on the share registry.

Simply Wall St -

An Intrinsic Calculation For ERG S.p.A. (BIT:ERG) Shows It's 23.39% Undervalued

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

ERG S.p.A. (BIT:ERG): The Yield That Matters The Most

(BIT:ERG) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Free cash flow (FCF) is the amount of cash ERG has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … The two ways to assess whether ERG’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Should We Worry About ERG S.p.A.'s (BIT:ERG) P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how ERG S.p.A.'s (BIT:ERG) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Should Investors Know About ERG SpA's (BIT:ERG) Return On Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in ERG, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

ERG SpA (BIT:ERG): Time For A Financial Health Check

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as ERG SpA (BIT:ERG) with a market-capitalization of €2.4b, rarely draw their attention. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Let’s take a look at ERG’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures.

Simply Wall St -

ERG SpA (BIT:ERG): Will The Growth Last?

In June 2018, ERG SpA (BIT:ERG) released its earnings update. … with earnings expected to grow by 16% in the upcoming year … the higher past 5-year average growth rate of 61%

Simply Wall St -

Is ERG SpA's (BIT:ERG) ROE Of 6.2% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows ERG has a return on equity of 6.2% for the last year. … That means that for every €1 worth of shareholders' equity, it generated €0.062 in profit.

Simply Wall St -

What Should Investors Know About ERG SpA's (BIT:ERG) Return On Capital?

Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently ERG is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Company Info

Map
Description

ERG S.p.A., through its subsidiaries, produces energy through renewable sources in Italy, France, Germany, Poland, Bulgaria, Romania, and the United Kingdom. The company generates electricity through wind, thermoelectric, and hydroelectric power plants, as well as natural gas cogeneration plants. As of December 31, 2017, it had wind farms installed capacity of 1,814 MW; thermoelectric plants installed capacity of 480 MW; and hydroelectric plants installed capacity of 527 MW. The company was founded in 1938 and is headquartered in Genoa, Italy. ERG S.p.A. is a subsidiary of San Quirico S.p.A.

Details
Name: ERG S.p.A.
ERG
Exchange: BIT
Founded: 1938
€2,584,947,816
148,816,800
Website: http://www.erg.eu
Address: ERG S.p.A.
Torre WTC,
Via De Marini, 1,
Genoa,
Genoa, 16149,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT ERG Ordinary Shares Borsa Italiana IT EUR 30. Oct 1997
DB ER9 Ordinary Shares Deutsche Boerse AG DE EUR 30. Oct 1997
LSE 0MHC Ordinary Shares London Stock Exchange GB EUR 30. Oct 1997
BATS-CHIXE ERGM Ordinary Shares BATS 'Chi-X Europe' GB EUR 30. Oct 1997
Number of employees
Current staff
Staff numbers
742
ERG employees.
Industry
Independent Power Producers and Energy Traders
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 20:40
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/11/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.