Executive Summary
Hera S.p.A. provides gas, electricity, water cycle, environmental, and other services in Italy. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has Hera's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HER is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HER's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.1%
HER
-0.3%
IT Integrated Utilities
-2.2%
IT Market
1 Year Return
-23.5%
HER
-7.3%
IT Integrated Utilities
-11.1%
IT Market
Return vs Industry: HER underperformed the Italian Integrated Utilities industry which returned -7.3% over the past year.
Return vs Market: HER underperformed the Italian Market which returned -11.2% over the past year.
Shareholder returns
| HER | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | -0.3% | -2.2% |
| 30 Day | 2.5% | 4.7% | 0.5% |
| 90 Day | 5.4% | 4.1% | 13.3% |
| 1 Year | -21.2%-23.5% | -4.3%-7.3% | -8.3%-11.1% |
| 3 Year | 9.9%0% | 22.5%7.4% | -3.9%-14.0% |
| 5 Year | 39.2%18.4% | 34.6%4.8% | 25.4%-9.3% |
Long-Term Price Volatility Vs. Market
How volatile is Hera's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The Case For Hera S.p.A. (BIT:HER): Could It Be A Nice Addition To Your Dividend Portfolio?2 weeks ago | Simply Wall St
Should You Be Impressed By Hera's (BIT:HER) Returns on Capital?1 month ago | Simply Wall St
We Think Hera (BIT:HER) Is Taking Some Risk With Its DebtValuation
Is Hera undervalued compared to its fair value and its price relative to the market?
11.61x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HER (€3.06) is trading above our estimate of fair value (€1.67)
Significantly Below Fair Value: HER is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HER is good value based on its PE Ratio (11.6x) compared to the XE Integrated Utilities industry average (19.9x).
PE vs Market: HER is good value based on its PE Ratio (11.6x) compared to the Italian market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: HER is poor value based on its PEG Ratio (10.3x)
Price to Book Ratio
PB vs Industry: HER is good value based on its PB Ratio (1.6x) compared to the XE Integrated Utilities industry average (1.7x).
Next Steps
Future Growth
How is Hera forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
1.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HER's forecast earnings growth (1.1% per year) is below the savings rate (1.9%).
Earnings vs Market: HER's earnings (1.1% per year) are forecast to grow slower than the Italian market (21.6% per year).
High Growth Earnings: HER's earnings are forecast to grow, but not significantly.
Revenue vs Market: HER's revenue (2.1% per year) is forecast to grow slower than the Italian market (3.2% per year).
High Growth Revenue: HER's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HER's Return on Equity is forecast to be low in 3 years time (11.5%).
Next Steps
Past Performance
How has Hera performed over the past 5 years?
16.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HER has a large one-off gain of €90.7M impacting its September 30 2020 financial results.
Growing Profit Margin: HER's current net profit margins (5.5%) are higher than last year (4.2%).
Past Earnings Growth Analysis
Earnings Trend: HER's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: HER's earnings growth over the past year (27.3%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: HER earnings growth over the past year (27.3%) exceeded the Integrated Utilities industry 4%.
Return on Equity
High ROE: HER's Return on Equity (13.2%) is considered low.
Next Steps
Financial Health
How is Hera's financial position?
Financial Position Analysis
Short Term Liabilities: HER's short term assets (€3.0B) exceed its short term liabilities (€2.9B).
Long Term Liabilities: HER's short term assets (€3.0B) do not cover its long term liabilities (€4.3B).
Debt to Equity History and Analysis
Debt Level: HER's debt to equity ratio (128.8%) is considered high.
Reducing Debt: HER's debt to equity ratio has reduced from 137.7% to 128.8% over the past 5 years.
Debt Coverage: HER's debt is well covered by operating cash flow (20.6%).
Interest Coverage: HER's interest payments on its debt are well covered by EBIT (7.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Hera current dividend yield, its reliability and sustainability?
3.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HER's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Italian market (1.43%).
High Dividend: HER's dividend (3.27%) is low compared to the top 25% of dividend payers in the Italian market (4.57%).
Stability and Growth of Payments
Stable Dividend: HER's dividends per share have been stable in the past 10 years.
Growing Dividend: HER's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.9%), HER's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HER's dividends in 3 years are forecast to be covered by earnings (53.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.0yrs
Average management tenure
CEO
Stefano Venier (57 yo)
6.75yrs
Tenure
€578,269
Compensation
Mr. Stefano Venier has been Manager of Administration, Finance and Control at Gruppo Hera since 2010. Mr. Venier has been the Chief Executive Officer of Hera S.p.A. since April 28, 2014. Mr. Venier had bee...
CEO Compensation Analysis
Compensation vs Market: Stefano's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD2.36M).
Compensation vs Earnings: Stefano's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & Group President | no data | €557.96k | no data | |
| CEO & Executive Director | 6.75yrs | €578.27k | no data | |
| General Director of Operations | 16yrs | €476.17k | no data | |
| Group Director of Administration | no data | no data | no data | |
| Director of the Technical Services Department | 5yrs | no data | no data | |
| Director of Investor Relations | 11yrs | no data | no data | |
| Group Manager of Legal & Corporate Affairs | 11yrs | no data | no data | |
| Group Director of Personnel & Organisation | 18.17yrs | no data | no data | |
| Chief Executive Officer of Marche Multiservizi S.p.A. | 13yrs | no data | no data | |
| CEO of Heratech S.r.l. & Hera Group Diversity Manager | 1yr | no data | no data | |
| Market Director of Herambiente SPA | 3.67yrs | no data | no data | |
| Group Market Manager & CEO of HERA COMM S.r.l. | 14.5yrs | no data | no data |
11.0yrs
Average Tenure
62.5yo
Average Age
Experienced Management: HER's management team is seasoned and experienced (11 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & Group President | no data | €557.96k | no data | |
| CEO & Executive Director | 6.75yrs | €578.27k | no data | |
| Independent Director | 0.75yr | €41.61k | no data | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Non Executive Director | 6.75yrs | €40.39k | no data | |
| Independent Non Executive Director | 3.75yrs | €60.87k | no data | |
| Independent Non-Executive Director | 3.75yrs | €60.47k | no data | |
| Independent Non Executive Director | 3.75yrs | €40.39k | no data | |
| Chairman of Statutory Auditors | 3.75yrs | no data | no data | |
| Independent Non Executive Director | 3.17yrs | €43.25k | no data | |
| Independent Non Executive Director | 0.75yr | no data | no data | |
| Independent Vice Chairman | 1yr | no data | no data |
3.8yrs
Average Tenure
57yo
Average Age
Experienced Board: HER's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hera S.p.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hera S.p.A.
- Ticker: HER
- Exchange: BIT
- Founded: 2002
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: €4.502b
- Shares outstanding: 1.47b
- Website: https://www.gruppohera.it
Number of Employees
Location
- Hera S.p.A.
- Viale Carlo Berti Pichat nr. 2/4
- Bologna
- Bologna
- 40127
- Italy
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HER | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Jun 2003 |
| HE9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2003 |
| 0NVV | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jun 2003 |
| HERM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jun 2003 |
Biography
Hera S.p.A. provides gas, electricity, water cycle, environmental, and other services in Italy. The company engages in the provision of integrated water services, including the collection, treatment, distr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 20:46 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.