Company DescriptionERG S.p.A., through its subsidiaries, produces energy through renewable sources in Italy, France, Germany, Poland, Bulgaria, and Romania. The company generates electricity through wind, solar, hydroelectric, and thermoelectric power plants, as well as natural gas cogeneration plants. As of December 31, 2021, it had wind farms installed capacity of 2,198 MW; solar plants installed capacity of 220 MW; hydroelectric plants installed capacity of 527 MW; and thermoelectric plants installed capacity of 480 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.

How the Company Makes Money

Erg SPA Financial Statement Overview

Summary

Erg SPA maintains stable profitability and operational efficiency but faces challenges with declining revenues and fluctuating cash flows. The balance sheet reflects prudent financial management with moderate leverage. Overall, the company shows resilience but needs to address revenue growth to improve financial health.

Income Statement

Positive

Erg SPA shows a stable gross profit margin, indicating efficient cost management. However, the net profit margin has been decreasing due to rising expenses, and revenue has declined over the last few years. Despite this, the EBIT and EBITDA margins are relatively healthy, suggesting robust operational performance.

Balance Sheet

Positive

The company's debt-to-equity ratio is moderate, reflecting balanced leverage. The equity ratio indicates a strong asset base, but there has been a decline in total assets over time. Return on equity has been fluctuating, indicating variability in generating returns for shareholders.

Cash Flow

Positive

The operating cash flow is strong relative to net income, which signifies good cash-generating ability. However, free cash flow growth has been inconsistent, with significant fluctuations in capital expenditures affecting long-term cash sustainability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
738.06M	740.94M	713.84M	1.04B	973.70M
	Gross Profit
550.06M	575.81M	408.41M	480.99M	511.45M
	EBIT
271.00M	304.18M	251.32M	162.80M	123.42M
	EBITDA
534.00M	568.48M	462.82M	375.92M	389.69M
	Net Income Common Stockholders
175.00M	178.67M	378.94M	81.90M	107.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	709.26M	392.81M	1.44B	740.41M
	Total Assets
6.32B	5.20B	5.33B	6.00B	4.53B
	Total Debt
3.09B	2.34B	2.28B	3.54B	2.22B
	Net Debt
2.48B	1.87B	1.89B	2.68B	1.57B
	Total Liabilities
4.09B	3.06B	3.28B	4.44B	2.76B
	Stockholders Equity
2.15B	2.13B	2.05B	1.56B	1.76B
Cash Flow		Free Cash Flow
250.24M	576.75M	82.30M	-242.15M	298.96M
	Operating Cash Flow
484.17M	882.52M	429.78M	30.59M	410.74M
	Investing Cash Flow
-707.13M	-316.54M	758.84M	-727.27M	-167.65M
	Financing Cash Flow
356.35M	-491.22M	-1.67B	901.46M	-241.05M

Erg SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0MHC		€2.80B	14.63	8.74%	5.36%	―	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
0P3O		€943.04M	9.78	27.86%	3.48%	―	―
0NVV		€6.37B	12.45	13.57%	3.21%	―	―

* Industrials Sector Average

Performance Comparison

GB:0MHC

Erg SPA

18.72

-5.14

-21.54%

GB:0P3O

Alerion CleanPower

17.50

-0.88

-4.79%

GB:0NVV

HERA S.p.A.

4.35

1.07

32.62%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.