BIT:HER

Stock Analysis Report

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Executive Summary

Hera S.p.A. provides gas, electricity, water cycle, environmental, and other services in Italy. More Details


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

HERIndustryMarket
7 Day1.1%-0.3%-2.2%
30 Day2.5%4.7%0.5%
90 Day5.4%4.1%13.3%
1 Year-21.2%-23.5%-4.3%-7.3%-8.3%-11.1%
3 Year9.9%0%22.5%7.4%-3.9%-14.0%
5 Year39.2%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

Valuation

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

NamePositionTenureCompensationOwnership
Tomaso di Vignano
Executive Chairman & Group Presidentno data€557.96kno data
Stefano Venier
CEO & Executive Director6.75yrs€578.27kno data
Roberto Barilli
General Director of Operations16yrs€476.17kno data
Luca Moroni
Group Director of Administrationno datano datano data
Franco Sami
Director of the Technical Services Department5yrsno datano data
Jens Hansen
Director of Investor Relations11yrsno datano data
Mila Fabbri
Group Manager of Legal & Corporate Affairs11yrsno datano data
Giancarlo Campri
Group Director of Personnel & Organisation18.17yrsno datano data
Mauro Tiviroli
Chief Executive Officer of Marche Multiservizi S.p.A.13yrsno datano data
Susanna Zucchelli
CEO of Heratech S.r.l. & Hera Group Diversity Manager1yrno datano data
Andrea Ramonda
Market Director of Herambiente SPA3.67yrsno datano data
Cristian Fabbri
Group Market Manager & CEO of HERA COMM S.r.l.14.5yrsno datano 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

NamePositionTenureCompensationOwnership
Tomaso di Vignano
Executive Chairman & Group Presidentno data€557.96kno data
Stefano Venier
CEO & Executive Director6.75yrs€578.27kno data
Bruno Tani
Independent Director0.75yr€41.61kno data
Monica Mondardini
Independent Director0.75yrno datano data
Danilo Manfredi
Independent Non Executive Director6.75yrs€40.39kno data
Erwin Paul Rauhe
Independent Non Executive Director3.75yrs€60.87kno data
Federica Seganti
Independent Non-Executive Director3.75yrs€60.47kno data
Marina Vignola
Independent Non Executive Director3.75yrs€40.39kno data
Myriam Amato
Chairman of Statutory Auditors3.75yrsno datano data
Alessandro Melcarne
Independent Non Executive Director3.17yrs€43.25kno data
Fabio Bacchilega
Independent Non Executive Director0.75yrno datano data
Gabriele Giacobazzi
Independent Vice Chairman1yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HERBIT (Borsa Italiana)YesOrdinary SharesITEURJun 2003
HE9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2003
0NVVLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2003
HERMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 20:46
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.