ERG ERG.MI
ERG is an Italian utility focused on renewable energy (wind, solar, and hydroelectric), generating revenue by selling electricity and managing generation assets. ERG shows acceptable financial health (score 7.51) but with high debt (ND/EBITDA 4.13) and weak quality (ROE 4.06, ROIC 5.22); its valuation is demanding (P/E 39.68) and the dividend is over-distributed (payout 176.68%), limiting its appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
ERG is an Italian utility focused on renewable energy (wind, solar, and hydroelectric), generating revenue by selling electricity and managing generation assets. ERG shows acceptable financial health (score 7.51) but with high debt (ND/EBITDA 4.13) and weak quality (ROE 4.06, ROIC 5.22); its valuation is demanding (P/E 39.68) and the dividend is over-distributed (payout 176.68%), limiting its appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 4.8 |
| Valuation | 4.8 |
| Dividend | 3.9 |
| Momentum | 5.3 |
| Risk & Context | 4.9 |
OVERALL SCORE: 5.2/10
Context and risks
Italy presents weak institutional governance and limited minority protection, adding regulatory and political intervention risk in the energy sector. Additionally, high debt (ND/EBITDA 4.13) and a high P/E (39.68) make ERG vulnerable to rising rates, although its renewable business has regulated revenues.
News considered in the analysis
- ERG SpA (FRA:ER9) (Q2 2026) Earnings Call Highlights: Solid H1 Results and Strategic PPA Signal ... — Resultados sólidos y señal estratégica de PPA, refuerzan la visibilidad de ingresos futuros, aunque ya parcialmente reflejado en el precio.
- ERG SpA (STU:ER9) Q1 2026 Earnings Call Highlights: Strong EBITDA Growth Amid Market Challenges — Crecimiento de EBITDA en un entorno difícil, positivo pero ya conocido por el mercado.
- EXCLUSIVE: Pandora Ranked Most Sustainable Consumer Brand — Noticia sobre otra empresa, sin impacto en ERG.
- ERG SpA (FRA:ER9) Q3 2025 Earnings Call Highlights: Strong EBITDA Growth Amid Strategic Investments — Resultados antiguos, ya descontados por el mercado.
- A Closer Look at ERG (BIT:ERG) Valuation Following Recent Share Price Surge — Análisis de valoración sin información nueva relevante.
Verdict: Hold; wait for debt reduction or a sustainable payout before considering entry.
Main risk: High leverage (ND/EBITDA 4.13) combined with a 176.68% payout makes the dividend dependent on debt, vulnerable to rising rates and a potential cut.
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