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 -6.30% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Flat results in Jun 25
- INTEREST(HY) At EUR 54.01 MM has Grown at 58.89%
- RAW MATERIAL COST(Y) Grown by 10.39% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 108.06 %
3
With ROE of 8.17%, it has a Very Expensive valuation with a 1.64 Price to Book Value
- Over the past year, while the stock has generated a return of 6.20%, its profits have fallen by -15%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 6.20% in the last 1 year, much lower than market (Italy FTSE MIB) returns of 25.83%
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)
-6.30%
EBIT Growth (5y)
7.05%
EBIT to Interest (avg)
3.62
Debt to EBITDA (avg)
4.05
Net Debt to Equity (avg)
0.84
Sales to Capital Employed (avg)
0.17
Tax Ratio
24.20%
Dividend Payout Ratio
78.16%
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
5.80%
ROE (avg)
6.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
1.64
EV to EBIT
22.42
EV to EBITDA
10.52
EV to Capital Employed
1.33
EV to Sales
7.17
PEG Ratio
NA
Dividend Yield
45.17%
ROCE (Latest)
5.92%
ROE (Latest)
8.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at EUR 1,034.27 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.36%
-6What is not working for the Company
INTEREST(HY)
At EUR 54.01 MM has Grown at 58.89%
RAW MATERIAL COST(Y)
Grown by 10.39% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 108.06 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 14.58%
Here's what is working for ERG SpA
Operating Cash Flow
Highest at EUR 1,034.27 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (EUR MM)
Debtors Turnover Ratio
Highest at 3.36%
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
Interest
At EUR 54.01 MM has Grown at 58.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (EUR MM)
Debt-Equity Ratio
Highest at 108.06 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 14.58%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 10.39% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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