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HERA S.p.A.
(HER)
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Rating:62Neutral
Price Target:
€4.00
▲(2.04% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by mid-range financial performance: improving operating profitability and modest growth are offset by elevated/rising leverage and uneven free cash flow. Valuation is a key support with a moderate P/E and a ~4.15% dividend yield, while technical signals are broadly neutral with only mild positive momentum.
Positive Factors
Regulated and diversified utility model
Hera's mix of regulated water and network tariffs plus long-term municipal waste contracts creates predictable revenue streams and lower demand cyclicality. This infrastructure-backed model supports durable cash flow visibility and investment recovery over the medium term.
Negative Factors
Elevated and rising leverage
Debt levels and a rising debt-to-equity ratio reduce financial flexibility and heighten sensitivity to interest rates and refinancing risk. For a capital-intensive utility, higher leverage constrains discretionary investment and can pressure credit metrics over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated and diversified utility model
Hera's mix of regulated water and network tariffs plus long-term municipal waste contracts creates predictable revenue streams and lower demand cyclicality. This infrastructure-backed model supports durable cash flow visibility and investment recovery over the medium term.
Read all positive factors
HERA S.p.A. (HER) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€5.63B
Dividend Yield4.16%
Average Volume (3M)2.57M
Price to Earnings (P/E)12.0
Beta (1Y)0.43
Revenue Growth-11.37%
EPS Growth-8.54%
CountryIT
Employees11,209
SectorGeneral
Sector StrengthN/A
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.32
Shares Outstanding1,489,538,700
10 Day Avg. Volume2,419,885
30 Day Avg. Volume2,569,058
Financial Highlights & Ratios
PEG Ratio-2.14
Price to Book (P/B)1.44
Price to Sales (P/S)0.45
P/FCF Ratio29.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€4.70Price Target Upside19.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)€12.83B
HERA S.p.A. Business Overview & Revenue Model
Company Description
Hera S.p.A., an Italian multi-utility company founded in Bologna in 2002, delivers a comprehensive suite of essential services across the nation. Its core operations encompass energy, water, and waste management. In the energy sector, Hera handles...
How the Company Makes Money
HERA S.p.A. generates revenue through a mix of regulated utility tariffs, contracted service fees, and competitive market sales across its main business lines:
1) Integrated Water Service (regulated)
- Revenue is primarily earned from tariffs cha...
HERA S.p.A. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.53B | 12.96B | 13.06B | 15.41B | 19.87B | 10.56B |
| Gross Profit | 2.32B | 4.23B | 5.37B | 4.47B | 1.33B | 1.48B |
| EBITDA | 1.69B | 1.26B | 1.46B | 1.36B | 1.01B | 1.02B |
| Net Income | 470.50M | 464.30M | 494.50M | 441.40M | 255.20M | 333.50M |
Balance Sheet | ||||||
| Total Assets | 15.12B | 14.13B | 15.06B | 15.08B | 17.12B | 14.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 876.20M | 1.36B | 1.40B | 1.98B | 932.50M |
| Total Debt | 5.83B | 5.02B | 4.79B | 4.73B | 5.68B | 3.35B |
| Total Liabilities | 10.75B | 9.73B | 11.07B | 11.33B | 13.47B | 10.61B |
| Stockholders Equity | 4.07B | 4.08B | 3.68B | 3.44B | 3.40B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 307.40M | 196.90M | -7.30M | 756.90M | -673.80M | 456.70M |
| Operating Cash Flow | 1.27B | 1.22B | 853.00M | 1.57B | 35.70M | 1.05B |
| Investing Cash Flow | -1.23B | -1.08B | -804.60M | -857.40M | -758.40M | -662.60M |
| Financing Cash Flow | -39.50M | -610.70M | -65.60M | -1.32B | 1.78B | -484.30M |
HERA S.p.A. Technical Analysis
Positive
3.92
Price Trends
3.76
Positive
3.78
Positive
3.86
Negative
Market Momentum
0.02
Positive
52.38
Neutral
65.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:HER, the sentiment is Positive. The current price of 3.92 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 3.76, and above the 200-day MA of 3.86, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:HER.
HERA S.p.A. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | €3.23B | 10.85 | 8.86% | 5.36% | -8.15% | -2.68% | |
62 Neutral | €5.63B | 12.04 | 11.63% | 4.08% | -11.37% | -8.54% | |
61 Neutral | €4.50B | 6.34 | 18.08% | 4.41% | -20.70% | 83.10% | |
60 Neutral | €100.01B | 24.30 | 12.65% | 3.71% | -0.14% | -26.76% | |
56 Neutral | €7.18B | 10.53 | 12.19% | 4.42% | 13.73% | -15.80% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IT:HER
HERA S.p.A.
3.85
0.35
10.12%
IT:A2A
A2A SpA
2.28
0.24
11.64%
IT:ACE
ACEA SPA
21.04
2.53
13.66%
IT:EDNR
Edison Spa
1.92
-0.20
-9.46%
IT:ENEL
Enel S.p.A.
9.72
2.17
28.74%
IT:IRE
Iren S.p.A.
2.51
0.11
4.46%
HERA S.p.A. Corporate Events
Hera Publishes Half-Year Financial Report for 30 June 2026
Aug 4, 2026
Hera S.p.A. has released its Half-Year Financial Report as of 30 June 2026, making the document publicly available at its registered office in Bologna and through digital channels, including the corporate website and the 1Info authorized storage m...
Intesa San Paolo Boosts Exposure to HERA With June Share Purchases
Jul 2, 2026
Italian banking group Intesa San Paolo has reported a series of transactions in HERA S.p.A. shares on the Italian MTA market during June 2026, acquiring a total of 2,475,000 shares across multiple trading days. The purchases, executed at average p...
Hera S.p.A. Publishes Documentation for €500 Million European Green Bond
Jun 9, 2026
Hera S.p.A. has executed and published documentation for a new European Green Bond issuance totaling 500 million euro, with a six-year term maturing in 2032. The bond deed of execution, dated 27 May 2026, is now accessible to the public at the com...
HERA Discloses Significant May 2026 Share Transactions by Intesa San Paolo
Jun 3, 2026
HERA S.p.A. disclosed a series of equity transactions involving its listed shares, identified by ISIN IT0001250932, carried out in May 2026 on the Italian MI MTA market. The transactions were executed by Intesa San Paolo S.p.A., which acted in ano...
Gruppo Hera Raises €500 Million with Oversubscribed European Green Bond
May 26, 2026
Gruppo Hera has issued its first European Green Bond for €500 million under its EMTN programme, a senior unsecured six-year note with a 3.50% coupon that drew about €3.6 billion in orders, nearly seven times the offer, largely from int...
Gruppo Hera Publishes Minutes of April 2026 Shareholders Meeting
May 26, 2026
Gruppo Hera has announced that the minutes of its shareholders meeting held on 29 April 2026 are now available for consultation by investors and the public. The documents can be accessed at the company’s registered office, on the Hera Group&...
Gruppo Hera Posts Resilient Q1 2026 Results and Ramps Up Investments in Water and Waste
May 13, 2026
Gruppo Hera reported resilient first-quarter 2026 results despite a volatile macroeconomic and energy backdrop, with EBITDA edging up 0.2% to €418.9 million and net profit attributable to shareholders rising 0.6% to €154.6 million. Rev...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.