Hera S.p.A. — Cyborg Score 7/10

Solid
Utilities & Multi-Utility Companies

Strategic Profile

As an Italian energy and utilities holding company, Hera combines public-service companies into a single multi-utility entity. The company's revenue is diversified across gas sales (42.2%), electricity sales (35.9%), waste collection and treatment (12.8%), and water cycle management (8.4%).

Cyborg Score Rationale

Hera offers a strong dividend yield of 4.37% in 2024 with a payout ratio of 43.72%, demonstrating stable cash generation. The company has an EBITDA of 1.41B EUR with a healthy 9.90% margin. However, the company's geographic concentration in Italy and exposure to regulated utility margins present structural headwinds.

Top Insights

  • Diversified revenue model reduces single-sector dependency with five business segments minimizing cyclical risk
  • Stock has demonstrated 16.41% growth over the past year as of February 2026
  • Listed on FTSE MIB since March 2019, included in Italy's 40 largest stocks by capitalization
  • Company operates with 10,240 employees as of January 2026, providing essential services across northern Italy

Named Competitors

  • A2A — Italian multi-utility with energy and environmental services
  • ACEA — Italian utility company with water and waste services
  • Italgas — Gas distribution and infrastructure operator in Italy
  • Terna — Italian electricity transmission network operator

Recent Developments

  • (February 2026) Stock trading at 1.15% weekly gain with analyst price target range of €4.10-€4.70
  • (January 2026) 10,240 employees across operations; EBITDA margin stable at 9.90%
  • (2024) Gas sales represent 11.3 billion m³ sold; electricity sales reached 16,249.2 GWh

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