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

• Market Cap: €5.40B
• Dividend Yield: 4.06%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.63
• Revenue Growth: 16.50%
• EPS Growth: 23.92%
• Country: IT
• Employees: 9,832
• Sector: Utilities
• Sector Strength: 86
• Industry: Diversified Utilities
• EPS (TTM): 0.16
• Shares Outstanding: 1,489,538,700
• 10 Day Avg. Volume: 3,230,027
• 30 Day Avg. Volume: 2,660,948
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 17.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: €4.00 ▲(8.40% Upside)

HERA S.p.A. has a solid overall score driven by strong financial performance and attractive valuation metrics. However, technical analysis indicates bearish momentum, suggesting caution in the short term.

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 various streams corresponding to its core sectors. In the environmental sector, it earns income from waste management services, including collection, treatment, and recycling activities. In the water sector, revenue is derived from the distribution and sale of water, as well as from wastewater treatment services. In the energy sector, HERA makes money through the distribution and sale of electricity and gas. Additionally, the company benefits from significant partnerships and collaborations that enhance its service offerings and market reach, contributing to its earnings.

HERA S.p.A. Financial Statement Overview

Summary

HERA S.p.A. demonstrates financial stability and operational efficiency with strong profitability margins and cash flow management. However, inconsistent revenue trends and potential cash flow volatility present areas for improvement.

Income Statement

HERA S.p.A. shows stable performance with a strong Gross Profit Margin of 33.5% and a healthy Net Profit Margin of 3.6% for TTM. However, the Revenue Growth Rate has been inconsistent, with a decline in recent years. The EBIT and EBITDA Margins are solid, indicating operational efficiency.

Balance Sheet

The company's Balance Sheet is robust, with a low Debt-to-Equity Ratio of 0.02 in TTM, showcasing strong financial stability. The Return on Equity is decent at 13%, but the Equity Ratio of 25.2% suggests some reliance on liabilities.

Cash Flow

The Cash Flow Statement reflects a positive Free Cash Flow Growth Rate with improved Free Cash Flow. The Operating Cash Flow to Net Income Ratio is strong at 2.1, highlighting effective cash generation relative to income. However, historical fluctuations in free cash flow indicate potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.09B	13.06B	15.41B	19.87B	10.56B	7.08B
Gross Profit	4.72B	5.37B	4.47B	1.33B	1.48B	1.29B
EBITDA	1.50B	1.46B	1.36B	1.01B	1.02B	971.70M
Net Income	505.10M	494.50M	441.40M	255.20M	333.50M	302.70M
Balance Sheet
Total Assets	15.41B	15.06B	15.08B	17.12B	14.03B	11.03B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.36B	1.40B	1.98B	932.50M	1.14B
Total Debt	77.10M	4.79B	4.73B	5.68B	3.35B	3.72B
Total Liabilities	11.21B	11.07B	11.33B	13.47B	10.61B	7.88B
Stockholders Equity	3.88B	3.68B	3.44B	3.40B	3.20B	2.96B
Cash Flow
Free Cash Flow	164.60M	-7.30M	756.90M	-673.80M	456.70M	385.00M
Operating Cash Flow	1.06B	853.00M	1.57B	35.70M	1.05B	891.40M
Investing Cash Flow	-916.20M	-804.60M	-857.40M	-758.40M	-662.60M	-518.60M
Financing Cash Flow	484.30M	-65.60M	-1.32B	1.78B	-484.30M	250.30M

HERA S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 3.69 is below the 20-day moving average (MA) of 3.85, below the 50-day MA of 3.98, and above the 200-day MA of 3.68, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 27.53 is Positive, neither overbought nor oversold. The STOCH value of 14.07 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.68B	17.88	6.87%	3.50%	6.30%	4.49%
HER	67 Neutral	€5.40B	10.58	13.98%	4.06%	16.50%	23.92%
0N54	―	€6.68B	8.08	16.17%	―	―	―
0MHD	―	€4.15B	10.74	14.47%	―	―	―
0NRE	―	€79.04B	12.54	20.53%	―	―	―
0MHC	―	€2.85B	20.40	6.61%	―	―	―
0MUN	―	€3.24B	10.58	9.99%	―	―	―

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.

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.