ScoreWhy is ERG SpA ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.80%
- Poor long term growth as Net Sales has grown by an annual rate of -2.80% over the last 5 years
- The company is Net-Debt Free
2
Negative results in Dec 25
- ROCE(HY) Lowest at 4.46%
- NET PROFIT(Q) Lowest at EUR 46.21 MM
- RAW MATERIAL COST(Y) Grown by 14.51% (YoY)
3
With ROE of 6.74%, it has a Very Expensive valuation with a 1.78 Price to Book Value
- Over the past year, while the stock has generated a return of 16.02%, its profits have fallen by -20%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 16.02% in the last 1 year, much lower than market (Italy FTSE MIB) returns of 27.29%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
No Data Found
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.80%
EBIT Growth (5y)
8.51%
EBIT to Interest (avg)
3.78
Debt to EBITDA (avg)
4.17
Net Debt to Equity (avg)
0.84
Sales to Capital Employed (avg)
0.16
Tax Ratio
26.37%
Dividend Payout Ratio
223.81%
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
5.85%
ROE (avg)
6.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
1.78
EV to EBIT
26.79
EV to EBITDA
11.41
EV to Capital Employed
1.40
EV to Sales
7.29
PEG Ratio
NA
Dividend Yield
42.55%
ROCE (Latest)
5.23%
ROE (Latest)
6.74%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 3.48 times
-10What is not working for the Company
ROCE(HY)
Lowest at 4.46%
NET PROFIT(Q)
Lowest at EUR 46.21 MM
RAW MATERIAL COST(Y)
Grown by 14.51% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 14.36 times
OPERATING PROFIT(Q)
Lowest at EUR 223.92 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 61.98 %
PRE-TAX PROFIT(Q)
Lowest at EUR 74.02 MM
EPS(Q)
Lowest at EUR -0.09
Here's what is working for ERG SpA
Debtors Turnover Ratio
Highest at 3.48 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for ERG SpA
Net Profit
Lowest at EUR 46.21 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very negative
Net Profit (EUR MM)
Operating Profit
Lowest at EUR 223.92 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (EUR MM)
Operating Profit Margin
Lowest at 61.98 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at EUR 74.02 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (EUR MM)
EPS
Lowest at EUR -0.09
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (EUR)
Inventory Turnover Ratio
Lowest at 14.36 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 14.51% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at EUR 1.39 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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