HERA S.p.A. (HER) AI Stock Analysis

• Market Cap: €5.47B
• Dividend Yield: 3.99%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.59
• Revenue Growth: 16.50%
• EPS Growth: 24.03%
• Country: IT
• Employees: 9,832
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.16
• Shares Outstanding: 1,489,538,700
• 10 Day Avg. Volume: 2,932,493
• 30 Day Avg. Volume: 2,351,465
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €4.20
• Price Target Upside: 11.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: €4.00 ▲(6.38% Upside)

HERA S.p.A. receives a strong score due to its solid financial performance and attractive valuation. The company's stable profitability and effective cost management are significant strengths. While technical indicators suggest a neutral trend, the stock's undervaluation and high dividend yield enhance its attractiveness.

HERA S.p.A. Business Overview & Revenue Model

Company Description

Hera S.p.A., a multi-utility company, engages in the waste management, water services, and energy businesses in Italy. It engages in the sale and distribution of methane and natural gas, as well as in the district heating and heating management business; generation, distribution, and sale of electricity; aqueduct, purification, and sewage services related to water; waste collection, treatment, recycling, and disposal services; and provision of public lighting, telecommunications, and other services. The company's water services include activities related to water collection, drinking water treatment, and distribution for civil and industrial applications, as well as sewerage and sewage treatment activities; and environmental services comprise sweeping, waste collection, transport, and recovery and disposal. It manages water services in 227 municipalities and serves a catchment area of approximately 3.6 million inhabitants with a water network of 35.080 kilometers; and provides gas with a network covering approximately 19,953 kilometers. The company was founded in 2002 and is headquartered in Bologna, Italy.

How the Company Makes Money

HERA generates revenue through several key streams, primarily from the sale and distribution of electricity and natural gas, which contributes a significant portion of its income. The company also earns revenue from water supply and wastewater management services, as well as from waste collection, treatment, and disposal services. Additionally, HERA engages in energy efficiency and renewable energy projects, which further enhance its revenue base. Strategic partnerships with local governments and municipalities enable HERA to secure long-term contracts for public utility services, providing a stable income source. The company also invests in technological innovations to optimize operations and reduce costs, thereby improving its profit margins.

HERA S.p.A. Financial Statement Overview

Summary

HERA S.p.A. demonstrates solid financial performance with stable profitability and effective cost management. The company has shown resilience in revenue growth and improved cash flow generation. While leverage is moderate, maintaining a balanced capital structure is crucial for future stability.

Income Statement

HERA S.p.A. shows a stable gross profit margin of around 41% in TTM, indicating efficient cost management. The net profit margin has slightly decreased to 3.5% in TTM, reflecting some pressure on profitability. Revenue growth is modest at 1.5% in TTM, recovering from previous declines. EBIT and EBITDA margins are stable, suggesting consistent operational performance.

Balance Sheet

The debt-to-equity ratio is 1.39 in TTM, indicating moderate leverage. Return on equity is healthy at 13.6%, showing effective use of equity. The equity ratio is stable, reflecting a balanced capital structure. However, the company should monitor its debt levels to maintain financial stability.

Cash Flow

Operating cash flow is strong, with a significant increase in TTM. Free cash flow has improved dramatically, showing a positive growth rate. The operating cash flow to net income ratio is 0.27, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio is lower, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.31B	13.06B	15.41B	19.87B	10.56B	7.08B
Gross Profit	5.89B	5.37B	4.47B	1.33B	1.48B	1.29B
EBITDA	1.47B	1.46B	1.36B	1.01B	1.02B	971.70M
Net Income	505.40M	494.50M	441.40M	255.20M	333.50M	302.70M
Balance Sheet
Total Assets	14.32B	15.06B	15.08B	17.12B	14.03B	11.03B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.36B	1.40B	1.98B	932.50M	1.14B
Total Debt	5.26B	4.79B	4.73B	5.68B	3.35B	3.72B
Total Liabilities	10.22B	11.07B	11.33B	13.47B	10.61B	7.88B
Stockholders Equity	3.80B	3.68B	3.44B	3.40B	3.20B	2.96B
Cash Flow
Free Cash Flow	329.70M	-7.30M	756.90M	-673.80M	456.70M	385.00M
Operating Cash Flow	1.26B	853.00M	1.57B	35.70M	1.05B	891.40M
Investing Cash Flow	-978.40M	-804.60M	-857.40M	-758.40M	-662.60M	-518.60M
Financing Cash Flow	190.20M	-65.60M	-1.32B	1.78B	-484.30M	250.30M

HERA S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.76 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.74, and above the 200-day MA of 3.73, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRE	71 Outperform	3.32B	10.71	9.21%	4.96%	13.50%	19.36%
A2A	69 Neutral	6.82B	8.18	15.87%	4.60%	2.73%	6.02%
HER	68 Neutral	€5.47B	10.73	13.98%	3.99%	16.50%	24.03%
ERG	67 Neutral	3.13B	22.32	―	4.78%	-3.04%	-39.96%
ENEL	64 Neutral	80.99B	12.83	18.28%	5.55%	-8.26%	24.33%
ACE	63 Neutral	4.17B	10.60	15.28%	4.84%	-15.52%	19.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

HERA S.p.A. Corporate Events

Hera Group Reports Strong First Half 2025 Results

Hera Group reported positive results for the first half of 2025, with net profit and investments growing in line with its Industrial Plan. The company achieved an 18.7% increase in revenues, driven by higher energy commodity prices, and a 20.2% rise in operating investments, particularly in the water and environmental sectors. Despite a slight decrease in EBITDA due to the absence of non-recurring opportunities from the previous year, Hera maintained financial stability with reduced net debt and improved profitability indicators. These results underscore the company’s resilience and capacity for sustainable growth, even amid complex market conditions.

The most recent analyst rating on (IT:HER) stock is a Buy with a EUR3.90 price target. To see the full list of analyst forecasts on HERA S.p.A. stock, see the IT:HER Stock Forecast page.

Con.Ami Replaces Municipality of Dozza in Hera S.p.A. Voting Syndicate

The Municipality of Dozza transferred its entire shareholding in Hera S.p.A. to Con.Ami, resulting in Con.Ami replacing the Municipality of Dozza as a participant in the Voting Syndicate Agreement. This change does not affect the total number of voting rights, but the number of participants in the Agreement has decreased to 110.

The most recent analyst rating on (IT:HER) stock is a Buy with a EUR3.90 price target. To see the full list of analyst forecasts on HERA S.p.A. stock, see the IT:HER Stock Forecast page.

Hera Group Completes Acquisition of Aliplast, Solidifying Leadership in Recycled Plastics

Herambiente S.p.A., a subsidiary of Hera Group, has completed its acquisition of Aliplast S.p.A., securing full ownership by purchasing the remaining 20% stake from Rogroup S.r.l. This acquisition finalizes a process that began in 2017, and it positions Hera Group as a significant player in the recycled plastic market, with Aliplast achieving a turnover of 150 million euros in 2024. The acquisition supports Hera’s strategic growth in the recycled plastic sector, particularly in the high-end market segments like food and health & beauty, and includes ongoing investments in innovative recovery plants and production expansions.

The most recent analyst rating on (IT:HER) stock is a Buy with a EUR3.90 price target. To see the full list of analyst forecasts on HERA S.p.A. stock, see the IT:HER Stock Forecast page.