Hera HER.MI
ItalyUtilities · Utilities - DiversifiedBorsa Italiana · EUR
4.54 EUR (+32.4%)
5 analysts
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Hera is a diversified Italian utility operating in the energy, water, and waste management sectors, providing integrated services to households and businesses in central-northern Italy.
Listed on Borsa Italiana · Symbol HER.MI · BIT: HER · Currency EUR
Key points
from its scores- ✓Attractive dividend8.2
- ✓Strong growth7.4
- ✕Little competitive advantage2.8
- ✕Poor share-price trend3.2
- ✕Unfavourable risk and backdrop4.4
AI analysis
bottom line, main risk, context and newsAttractive valuation and solid dividend, but high leverage and Italy's jurisdictional risk limit upside potential.
Hera presents acceptable financial health (score 6.68) with high leverage (Net Debt/EBITDA of 3.17) and a low operating margin (4.75%), but its valuation is attractive (P/E 10.72, EV/EBITDA 6.95) and it offers a solid dividend (net yield 4.15%). Revenue growth of 21.7% is notable, although the quality of its moat is weak (score 2.84).
High leverage (Net Debt/EBITDA of 3.17) combined with the ECB's rate hike cycle and Italy's weak governance, which may affect minority shareholder protection.
Context and risks
Hera operates in Italy, a country with weak institutional governance and limited minority shareholder protection, adding relevant jurisdictional risk. Furthermore, its high leverage (Net Debt/EBITDA of 3.17) exposes it to a rising interest rate environment in Europe, making refinancing more expensive and pressuring its balance sheet.
Is Hera stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 43% below the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.7 | 19.1 | −44% |
| EV / EBITDA | 7.0 | 12.2 | −43% |
| Price / book | 1.2 | 1.9 | −36% |
| Price / sales | 0.4 | 2.6 | −85% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.7 out of 10 (median for Utilities: 4.8).
Average analyst target: 4.54 EUR, +32.4% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.1 (sector 5.8), Growth 7.4 (sector 5.8).
Classic formulas with standard assumptions (3.8% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 10.7
- Forward P/E
- 10.3
- EV / EBITDA
- 7.0
- Price / book
- 1.2
- Price / sales
- 0.4
- PEG
- 2.53
- Market cap
- 5.1B EUR
- Enterprise value
- 9.8B EUR
Profitability
- ROE
- 12.1%
- ROA
- 3.5%
- ROIC (approx.)
- 6.1%
- Gross margin
- 18.3%
- Operating margin
- 4.8%
- Net margin
- 3.7%
- Free cash flow
- 16.4M EUR
- FCF yield
- 0.3%
- Cash conversion
- 1%
Solvency
- Total debt
- 5.8B EUR
- Net debt
- 4.5B EUR
- Cash
- 1.4B EUR
- EBITDA
- 1.4B EUR
- Net debt / EBITDA
- 3.17
- Debt / equity
- 133.32
- Current ratio
- 1.13
- Quick ratio
- 0.96
Growth
- Revenue growth
- +21.7%
- Earnings growth
- +8.5%
- EPS (TTM)
- 0.32 EUR
- EPS (forward)
- 0.33 EUR
Dividend
- Dividend yield
- 4.7%
- Payout
- 50.0%
Risk and market
- Beta
- 0.83
- Analyst consensus
- Buy (5)
- Target price
- 4.54 EUR
- 52-week range
- 3.43 – 4.45
Recent news
All HER.MI news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Hera
Is Hera stock cheap or expensive?
On P/E and EV / EBITDA, it trades 43% below the Utilities median on average. Valuation score: 6.7 out of 10 (median for Utilities: 4.8). Average analyst target: 4.54 EUR, +32.4% versus the price. This is not investment advice.
What score does Hera get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,247 of 2,130 (better than 39% of the companies analysed). Its strongest category is Dividend (8.2) and its weakest, Quality / Moat (2.8). Analysis of 08/10/2026.
What is Hera's P/E ratio?
Its P/E is 10.7: the share price equals 10.7 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 10.3.
How much is Hera worth on the stock market?
Its market capitalisation is 5.1B EUR and its enterprise value, debt included, is 9.8B EUR.
How much debt does Hera have?
Its net debt (debt minus cash) is 4.5B EUR. That is 3.17 times its EBITDA; the Utilities median is 5.33.
Does Hera pay a dividend?
Yes: its dividend yield is 4.66% and it pays out 50% of its earnings.
How has Hera stock performed over the last year?
It has fallen 8.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 3.43 and 4.45 EUR. Past performance does not guarantee future results.
What do analysts think of Hera?
5 analysts cover it; their average recommendation is “Buy” and their average target is 4.54 EUR (+32.4% versus the price). It is an estimate, not market data.