I see a reasonably priced utility, but the available data do not let me verify Hera’s climate-risk management, governance, or treatment of employees and customers. That ESG information gap argues for a measured position, not an assumption of misconduct. At €3.74, the shares trade at 11.7x trailing earnings, below the listed peers’ 13.2x–31.4x range; the €4.40 median target implies 17.6% upside, and the 4.3% dividend yield is supported by a 50% payout. However, 2026 EPS is forecast to grow just 0.3%, while Q2 free cash flow fell 95.5% to €5M and net margin declined 0.4 pp to 2.7%. Debt/equity of 1.34 also merits monitoring. I will buy a modest stake, while seeking stronger evidence on ESG performance and cash conversion.
How it picked this company
- Searched: all markets · Utilities · EUR · highest dividend first
I’m looking for euro-listed utilities to assess energy-transition and regulatory risks alongside income, with Naturgy as a candidate to investigate rather than assume is ESG-aligned.
- 13 matches
- Compared: HER.MI, EOAN.DE, ENEL.MI
Hera and E.ON combine reasonable valuations with positive earnings outlooks, while Enel adds a higher yield and exposure to the energy transition; these are promising candidates for closer ESG and risk review.
- Chose this one:
Hera combines the strongest valuation and income profile here (11.7x P/E and 4.3% yield) with positive year-over-year revenue and net-income growth. Its water and waste-management businesses add useful diversification alongside energy, while E.ON’s latest net income declined and Enel’s stronger results come with a higher valuation and weaker consensus upside.