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

• Market Cap: €5.74B
• Dividend Yield: 3.82%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.69
• Revenue Growth: 10.92%
• EPS Growth: 29.39%
• Country: IT
• Employees: 9,832
• Sector: Industrials
• Sector Strength: 91
• Industry: Diversified Utilities
• EPS (TTM): 0.11
• Shares Outstanding: 1,489,538,700
• 10 Day Avg. Volume: 2,272,612
• 30 Day Avg. Volume: 2,855,835
• PEG Ratio: 3.98
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.92
• 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: 10.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: €4.50 ▲(14.50%Upside)

HERA S.p.A.'s stock is supported by strong financial stability and a fair valuation, making it an attractive option for income-seeking investors. However, the technical indicators suggest caution due to weak momentum and oversold conditions. Improving revenue growth and maintaining cash flow stability could enhance future performance.

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. 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: Neutral
• Last Price: 3.93
• 50DMA: Negative
• 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 Neutral. The current price of 3.93 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.06, and above the 200-day MA of 3.64, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
ENEL	76 Outperform	€79.87B	11.30	25.20%	4.75%	-7.85%	63.65%
IRE	70 Neutral	€3.25B	11.62	8.81%	5.06%	9.09%	16.49%
ACE	69 Neutral	€4.14B	12.08	13.68%	4.82%	-2.19%	14.21%
HER	68 Neutral	€5.74B	11.22	13.57%	3.82%	10.92%	29.39%
ERG	67 Neutral	€2.77B	14.40	8.74%	5.40%	-0.39%	6.12%
A2A	67 Neutral	€6.81B	8.23	16.17%	4.62%	2.73%	6.02%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%

HERA S.p.A. Corporate Events

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.

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.