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HER:MILHera S.p.A. Analysis

Data as of 2026-03-14 - not real-time

€4.07

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Hera S.p.A. trades at a clear discount to its sector peers, offering an attractive dividend yield that exceeds typical utility payouts. The stock shows a bullish price trend with the short‑term moving average comfortably above the longer‑term average, while momentum indicators are mixed, suggesting limited upside in the near term but a solid foundation for longer horizons.
Fundamentally, the company delivers modest profitability and generates positive cash flow, supporting its dividend and indicating financial resilience despite recent revenue contraction. Low beta underscores limited market sensitivity, though the 30‑day volatility is higher than typical for utilities, reflecting some price swing potential.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price is above short‑term support but below near‑term resistance
  • MACD shows bearish momentum despite overall bullish trend
  • strong dividend yield provides downside protection

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • valuation discount relative to industry PE
  • sustainable dividend payout with solid cash flow
  • low beta indicating defensive profile in a volatile market

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • stable regulated utility business with diversified services
  • consistent free cash flow supporting dividend continuity
  • undervalued price offering margin of safety for patient investors

Key Metrics & Analysis

Financial Health

Revenue Growth-6.40%
Profit Margin3.64%
P/E Ratio11.6
ROE13.77%
ROA3.71%
Debt/Equity127.47
P/B Ratio1.5
Op. Cash Flow€1.2B
Free Cash Flow€109.1M
Industry P/E23.3

Technical Analysis

TrendBullish
RSI41.4
Support€3.97
Resistance€4.45
MA 20€4.23
MA 50€4.19
MA 200€4.00
MACDBearish
VolumeIncreasing
Fear & Greed Index72.88

Valuation

Target Price€4.52
Upside/Downside10.95%
GradeUndervalued
TypeValue
Dividend Yield3.68%

Risk Assessment

Beta0.19
Volatility25.15%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.