HERA S.p.A. (IT:HER)
:HER
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HERA S.p.A.
(HER)
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Rating:58Neutral
Price Target:
€4.00
▼(-2.20% Downside)
Action:Reiterated
Date:05/15/26
The score is anchored by mixed financial performance (declining revenue and margin/cash-conversion concerns, partly offset by improved operating profitability and a rebound in free cash flow). Weak technical momentum is a meaningful drag, while the low P/E and ~3.9% dividend yield provide valuation support.
Positive Factors
Diversified multi-utility platform
HERA's integrated footprint across waste, energy retail and regulated water/gas creates durable revenue diversity. Scale across adjacent services enables cross-selling, operational synergies and circular-economy opportunities that support margin resilience and long-term cash generation.
Negative Factors
Declining revenue trend
A persistent top-line decline reduces earnings growth optionality and increases reliance on margin improvements or cost cuts to sustain profits. Over several quarters this limits the company's ability to organically fund expansion or to generate stronger cash returns to investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified multi-utility platform
HERA's integrated footprint across waste, energy retail and regulated water/gas creates durable revenue diversity. Scale across adjacent services enables cross-selling, operational synergies and circular-economy opportunities that support margin resilience and long-term cash generation.
Read all positive factors
HERA S.p.A. (HER) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€5.69B
Dividend Yield3.76%
Average Volume (3M)2.57M
Price to Earnings (P/E)9.5
Beta (1Y)0.49
Revenue Growth-13.76%
EPS Growth-9.67%
CountryIT
Employees9,832
SectorGeneral
Sector StrengthN/A
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.31
Shares Outstanding1,489,538,700
10 Day Avg. Volume2,419,885
30 Day Avg. Volume2,569,058
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)1.44
Price to Sales (P/S)0.46
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 Upside14.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)€12.84B
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 bu...
How the Company Makes Money
HERA makes money through a combination of regulated utility revenues and market-based (competitive) revenues. (1) Regulated networks and utilities: it earns revenues from operating regulated infrastructure and public-service concessions, primarily...
HERA S.p.A. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.01B | 12.81B | 13.06B | 15.41B | 19.87B | 10.56B |
| Gross Profit | 3.27B | 733.30M | 5.37B | 4.47B | 1.33B | 1.48B |
| EBITDA | 1.60B | 1.54B | 1.46B | 1.36B | 1.01B | 1.02B |
| Net Income | 465.20M | 464.30M | 494.50M | 441.40M | 255.20M | 333.50M |
Balance Sheet | ||||||
| Total Assets | 15.34B | 14.13B | 15.06B | 15.08B | 17.12B | 14.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 876.20M | 1.36B | 1.40B | 1.98B | 932.50M |
| Total Debt | 5.52B | 5.02B | 4.79B | 4.73B | 5.68B | 3.35B |
| Total Liabilities | 10.76B | 9.73B | 11.07B | 11.33B | 13.47B | 10.61B |
| Stockholders Equity | 4.25B | 4.08B | 3.68B | 3.44B | 3.40B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 421.10M | 196.90M | -7.30M | 756.90M | -673.80M | 456.70M |
| Operating Cash Flow | 1.33B | 1.22B | 853.00M | 1.57B | 35.70M | 1.05B |
| Investing Cash Flow | -1.20B | -1.08B | -804.60M | -857.40M | -758.40M | -662.60M |
| Financing Cash Flow | -742.80M | -610.70M | -65.60M | -1.32B | 1.78B | -484.30M |
HERA S.p.A. Technical Analysis
Negative
4.09
Price Trends
4.01
Negative
4.10
Negative
3.98
Negative
Market Momentum
-0.06
Positive
43.62
Neutral
57.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:HER, the sentiment is Negative. The current price of 4.09 is above the 20-day moving average (MA) of 3.94, above the 50-day MA of 4.01, and above the 200-day MA of 3.98, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | €3.50B | 6.17 | 9.06% | 5.06% | -5.65% | 4.14% | |
62 Neutral | €7.15B | 8.80 | 13.08% | 4.37% | 9.30% | -14.17% | |
62 Neutral | €99.13B | 13.03 | 23.22% | 5.05% | -3.07% | -42.04% | |
60 Neutral | €4.95B | 10.72 | 14.57% | 4.33% | -43.87% | 42.07% | |
58 Neutral | €5.69B | 9.49 | 13.30% | 3.76% | -13.76% | -9.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | €3.47B | -63.38 | 5.96% | 4.61% | 0.75% | -65.10% |
* General Sector Average
IT:HER
HERA S.p.A.
3.91
-0.27
-6.50%
IT:A2A
A2A SpA
2.28
0.10
4.69%
IT:ACE
ACEA SPA
23.08
2.38
11.51%
IT:ENEL
Enel S.p.A.
9.70
2.02
26.36%
IT:ERG
Erg SPA
22.94
5.85
34.26%
IT:IRE
Iren S.p.A.
2.71
0.17
6.77%
HERA S.p.A. Corporate Events
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...
Hera Shareholders Approve 2025 Accounts and €0.16 Dividend
Apr 30, 2026
Hera S.p.A.’s shareholders approved the 2025 Annual Financial Report and endorsed the Board of Directors’ proposal to distribute a dividend of €0.16 per share, confirming the group’s ongoing commitment to shareholder remune...
Hera Approves 2025 Results, Lifts Dividend and Renews Board
Apr 29, 2026
Hera’s shareholders approved the 2025 financial statements, confirming the group’s solid financial position and its strategy of sustainable growth. EBITDA reached €1,537.2 million, slightly below 2024 due to non-recurring items l...
Hera Publishes Minority Lists for Board and Auditor Appointments Ahead of April Meeting
Apr 8, 2026
Hera S.p.A. has published the minority shareholder lists of candidates for its Board of Directors and Board of Statutory Auditors ahead of the shareholders’ meeting scheduled for 29 April 2026. The lists, submitted within the required deadli...
Hera Publishes 2025 Financial Statements and Governance Reports
Apr 7, 2026
Hera S.p.A. has made its draft separate and consolidated financial statements for the year ended 31 December 2025 publicly available, together with the reports from the Board of Statutory Auditors and the external audit firm. These documents can b...
Hera Discloses Share Exchange with Intesa San Paolo for Sostelia Acquisition
Apr 1, 2026
HERA S.p.A. disclosed a transaction involving its own listed shares with Intesa San Paolo S.p.A. as the counterparty. According to the notice, Intesa San Paolo sold 156,358 HERA shares on 16 March 2026 at an average weighted price of €4.1573...
Hera Publishes Documentation Ahead of April 2026 Shareholders’ Meeting
Mar 27, 2026
Hera S.p.A. has made available the documentation for its Ordinary Shareholders’ Meeting scheduled for 29 April 2026, publishing materials at its registered office, through the authorised storage mechanism 1INFO, and on the Hera Group website...
Gruppo Hera Lifts Profit, Record Investments and Dividend as It Expands in Waste and Water
Mar 25, 2026
Gruppo Hera closed 2025 with net profit attributable to shareholders up 3.9% on a like-for-like basis and investments rising nearly 20% to a record €1.03 billion, even as revenue and EBITDA edged slightly lower. The company highlighted stron...
Gruppo Hera Publishes Majority Lists for New Board and Auditors
Mar 24, 2026
Gruppo Hera has published the majority lists of candidates for its Board of Directors and Board of Statutory Auditors, submitted by shareholders ahead of the shareholders’ meeting scheduled for 29 April 2026. The documentation is available a...
Gruppo Hera Buys Gruppo Sostelia, Becomes Italy’s Top Water Treatment Player
Mar 16, 2026
Gruppo Hera has completed the acquisition of 100% of Gruppo Sostelia, a group of water treatment companies led by STA Società Trattamento Acque and rooted across northern Italy, for an enterprise value of €138 million. The deal consolid...
Hera Public Shareholders Back Continuity at the Top Ahead of 2026–2029 Term
Mar 4, 2026
Hera S.p.A.’s public shareholders’ syndicate committee, chaired by the Mayor of Modena, has approved its proposed slate of candidates for the company’s Board of Directors and Board of Statutory Auditors, to be voted on at the sha...
Hera Publishes Board Reports Ahead of 29 April 2026 Shareholders’ Meeting
Mar 3, 2026
Hera S.p.A. has made available to the public the documentation for its Ordinary Shareholders’ Meeting scheduled for 29 April 2026 in Bologna. The materials include the Board of Directors’ explanatory reports on item 5 and on items 6 to...
HERA Reports Intesa San Paolo Purchase of 100,000 Shares on MTA
Mar 2, 2026
HERA S.p.A. disclosed a transaction in its own listed shares involving Intesa San Paolo S.p.A. as the counterparty. The filing reports that on 13 February 2026 Intesa San Paolo purchased 100,000 HERA shares on the Italian MTA market at an average ...
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.