0.00%
2.20%
-0.39%
7.48%
12.25%
-4.95%
-13.97%
AI Spotlight on HER
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.
Market Data
| Last Price | 3.54 |
| Change Percentage | 0.00% |
| Open | 3.54 |
| Previous Close | 3.54 |
| Market Cap ( Millions) | 5096 |
| Volume | 2132581 |
| Year High | 3.73 |
| Year Low | 3.02 |
| M A 50 | 3.45 |
| M A 200 | 3.44 |
Financial Ratios
| FCF Yield | 3.23% |
| Dividend Yield | 3.96% |
| ROE | 12.15% |
| Debt / Equity | 2.20% |
| Net Debt / EBIDTA | -47.23% |
| Price To Book | 1.46 |
| Price Earnings Ratio | 12.07 |
| Price To FCF | 31.0 |
| Price To sales | 0.42 |
| EV / EBITDA | 2.61 |
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Gas
Expected Growth : 0.8 %
What the company do ?
Gas from Hera S.p.A. is a leading Italian gas distributor, providing natural gas to households, businesses, and industries.
Why we expect these perspectives ?
Hera S.p.A.'s 0.8% growth in Gas segment is driven by increasing demand for clean energy, government incentives for renewable energy sources, and strategic investments in infrastructure development, particularly in the Italian market. Additionally, the company's focus on energy efficiency and cost reduction initiatives has contributed to the growth.
Segment n°2 -> Power Electric
Expected Growth : 1.2 %
What the company do ?
Power Electric from Hera S.p.A. is a segment that provides electricity distribution and sales services to residential, commercial, and industrial customers in Italy.
Why we expect these perspectives ?
Power Electric from Hera S.p.A. growth driven by increasing demand for renewable energy, government incentives for sustainable infrastructure, and strategic acquisitions expanding market share. Additionally, investments in grid modernization and electrification of transportation contribute to the 1.2% growth rate.
Segment n°3 -> Waste Management
Expected Growth : 0.9 %
What the company do ?
Hera S.p.A.'s Waste Management segment collects, treats, and disposes of waste, offering integrated services for municipalities and companies in Italy.
Why we expect these perspectives ?
Hera S.p.A.'s Waste Management segment growth of 0.9% is driven by increasing waste volumes, regulatory support for waste-to-energy and recycling, and cost savings from operational efficiencies. Additionally, investments in digitalization and process optimization contribute to margin expansion, while a growing focus on circular economy and sustainability supports long-term growth prospects.
Segment n°4 -> Water Cycle
Expected Growth : 1.1 %
What the company do ?
The water cycle, also known as the hydrologic cycle, is the continuous process by which water is circulated between the Earth and the atmosphere, involving evaporation, condensation, and precipitation.
Why we expect these perspectives ?
Hera S.p.A.'s Water Cycle segment growth of 1.1% is driven by increasing water demand, efficient network management, and investments in infrastructure development. Additionally, the company's focus on water conservation and leak detection, as well as its efforts to reduce energy consumption, contribute to the segment's growth.
Segment n°5 -> Other Services
Expected Growth : 0.7 %
What the company do ?
Hera S.p.A.'s Other Services include energy efficiency, public lighting, and telecommunications, providing innovative solutions for citizens and businesses.
Why we expect these perspectives ?
Hera S.p.A.'s Other Services segment growth of 0.7% is driven by increasing demand for energy efficiency solutions, expansion of public lighting services, and investments in digitalization and innovation, offsetting declining revenues from traditional services.
Hera S.P.A. Products
| Product Range | What is it ? |
|---|---|
| Water Distribution | Hera S.p.A. provides water distribution services, managing the entire water cycle, from production to distribution, ensuring a continuous and efficient supply of water to households and businesses. |
| Waste Management | Hera S.p.A. offers waste management services, including collection, transportation, and disposal of waste, promoting a sustainable and environmentally friendly approach. |
| Energy Distribution | Hera S.p.A. distributes energy, including electricity and gas, to households and businesses, ensuring a reliable and efficient supply. |
| Public Lighting | Hera S.p.A. provides public lighting services, designing, installing, and maintaining public lighting systems, ensuring safety and energy efficiency. |
| Heat Management | Hera S.p.A. offers heat management services, providing heating and cooling solutions to households and businesses, promoting energy efficiency and sustainability. |
Hera S.p.A.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Hera S.p.A. is medium due to the presence of alternative energy sources such as solar and wind power.
Bargaining Power Of Customers
The bargaining power of customers for Hera S.p.A. is low due to the lack of alternative energy providers in the region.
Bargaining Power Of Suppliers
The bargaining power of suppliers for Hera S.p.A. is medium due to the presence of multiple suppliers of energy sources.
Threat Of New Entrants
The threat of new entrants for Hera S.p.A. is high due to the increasing trend of renewable energy and the ease of entry into the market.
Intensity Of Rivalry
The intensity of rivalry for Hera S.p.A. is high due to the presence of multiple energy providers in the region, leading to intense competition.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 57.59% |
| Debt Cost | 4.61% |
| Equity Weight | 42.41% |
| Equity Cost | 7.92% |
| WACC | 6.01% |
| Leverage | 135.78% |
Hera S.p.A. : Quality Control
Hera S.p.A. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| IRE.MI | Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes … |
| A2A.MI | A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, waste … |
| ACE.MI | ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy. The company operates through Environment, Commercial and Trading, Water, Energy Infrastructure, Engineering and Services, and Abroad segments. … |
| EVN.VI | EVN AG provides energy and environmental services for private and business customers, as well as municipalities in Austria, Bulgaria, Croatia, Germany, and Albania. The company operates through Energy, Generation, Networks, … |
| EDP.LS | EDP - Energias de Portugal, S.A. engages in the production, transmission, distribution, and commercialization of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Brazil, North … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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A2A
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ACEA
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Iren
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Hera
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EVN
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