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

• Market Cap: €5.95B
• Dividend Yield: 3.69%
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.69
• Revenue Growth: 10.92%
• EPS Growth: 29.39%
• Country: IT
• Employees: 9,832
• Sector: Industrials
• Sector Strength: 87
• Industry: Diversified Utilities
• EPS (TTM): 0.11
• Shares Outstanding: 1,489,538,700
• 10 Day Avg. Volume: 3,718,012
• 30 Day Avg. Volume: 2,813,037
• PEG Ratio: 0.57
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -809.21
• 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: €4.35
• Price Target Upside: 6.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: €4.50 ▲(10.57%Upside)

HERA S.p.A.'s overall stock score is primarily supported by its valuation, which indicates potential undervaluation and provides a decent dividend yield. Despite this, financial performance is weighed down by inconsistent profitability and cash flow challenges. Technical analysis moderately supports the stock, though momentum remains weak.

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 S.p.A. generates revenue through its diversified operations across the energy, water, and environmental sectors. In the energy sector, the company earns money by distributing and selling electricity and gas to residential and commercial customers. The water sector contributes to revenue through the management and distribution of water, wastewater treatment, and related services. The environmental sector is a significant revenue stream, where HERA provides waste collection, recycling, and disposal services. The company also benefits from public-private partnerships and government contracts, which enhance its service offerings and market reach. Additionally, HERA invests in technological innovation and sustainable practices, which help optimize operational efficiency and drive growth.

HERA S.p.A. Financial Statement Overview

Summary

HERA S.p.A. shows mixed financial performance with strengths in operational efficiency and stable leverage. However, there are challenges due to fluctuating revenue and profitability, as well as inconsistent cash flow generation.

Income Statement

HERA S.p.A. has demonstrated variable revenue growth with significant fluctuations, including a notable decline in the most recent year. The gross profit margin has generally improved, indicating operational efficiency. However, net profit margins have been inconsistent, reflecting volatility in profitability. EBIT and EBITDA margins have shown stability, supporting the company's core operational strength.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. Stockholders' equity has steadily increased, enhancing financial stability. However, the equity ratio remains moderate, suggesting reliance on liabilities to finance assets. Overall, the balance sheet reflects a stable but not overly conservative financial position.

Cash Flow

HERA S.p.A. has experienced significant volatility in free cash flow, with recent negative figures indicating potential cash management challenges. Operating cash flow remains positive but shows fluctuations. The company has demonstrated resilience in generating cash relative to net income, though growth in free cash flow is inconsistent.

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

HERA S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4.07 is below the 20-day moving average (MA) of 4.12, above the 50-day MA of 4.06, and above the 200-day MA of 3.61, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 20.73 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
HER	66 Neutral	€5.95B	11.63	13.57%	3.69%	10.92%	29.39%
Sector *	58 Neutral	$1.33B	4.26	-2.93%	8.38%	3.41%	-51.76%
0N54		€7.15B	8.64	16.17%	3.81%	―	―
0NRE		€81.91B	11.55	25.20%	5.33%	―	―
0MUN		€3.34B	11.83	8.81%	4.95%	―	―
0NQP		€16.98B	13.49	16.18%	6.84%	―	―
I10		€7.27B	12.95	20.21%	5.31%	―	―

HERA S.p.A. Corporate Events

HERA S.p.A. Publishes Shareholders Meeting Documents

HERA S.p.A. has made available the minutes from its Shareholders Meeting held on April 30, 2025, along with the updated Articles of Association. These documents can be accessed at the company’s headquarters, on their website, and through the authorized storage mechanism 1INFO, following their registration with the Bologna Companies Register.

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 Achieves Strong Q1 2025 Financial Results

Hera Group reported strong financial results for the first quarter of 2025, with a significant increase in revenues and net profit. The company’s strategic focus on sustainability and innovation contributed to its financial stability, allowing it to reduce net financial debt and improve its financial flexibility, positioning it well for future growth opportunities.

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 S.p.A. Approves 2024 Financial Report and Dividend Distribution

Hera S.p.A. announced the approval of its Annual Financial Report for 2024 and a dividend distribution of 15 cents per share, with payments beginning on June 25, 2025. The minutes from the Shareholders’ Meeting will be publicly accessible, reflecting transparency and compliance with legal requirements.

HERA S.p.A. Calls for Shareholder Assembly to Discuss Key Strategic Matters

HERA S.p.A. has announced an Extraordinary and Ordinary Assembly for shareholders to discuss key agenda items, including amendments to the Articles of Association, financial statements, profit allocation, and remuneration policies. This assembly is crucial for stakeholders as it addresses financial and operational strategies, potentially impacting the company’s future direction and shareholder value.