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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Hera SpA's Interest Coverage for the quarter that ended in Jun. 2026 was 4.96.
Hera SpA's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.46.
As of today, Hera SpA's Altman Z-Score is 1.42.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Hera SpA has the Financial Strength Rank of 5.
Hera SpA Financial Strength Related Terms
HRASF vs SRE: Financial Strength Comparison
For the Utilities - Diversified subindustry, Hera SpA's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hera SpA Financial Strength vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hera SpA's Financial Strength distribution charts can be found below:
* The bar in red indicates where Hera SpA's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Hera SpA has a Z-score of 1.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.42 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hera SpA (HRASF) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hera SpA and its competitors. This is near median its historical median of 5.00. Over the past decade, Hera SpA's Financial Strength has ranged from 2.00 to 8.00.
Is Hera SpA's Financial Strength too high?
Hera SpA's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 8.00. Overall, Hera SpA has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Hera SpA's Financial Strength compare to SRE?
Hera SpA's Financial Strength of 5 can be compared against companies in the Utilities - Regulated industry. Historically, Hera SpA's own Financial Strength has ranged from 2.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Utilities - Regulated company?
A good Financial Strength depends on the Utilities - Regulated industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hera SpA and its competitors. Hera SpA's current Financial Strength is 5, which is near median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hera SpA stock overvalued right now?
Hera SpA (HRASF) has a current Financial Strength of 5. The stock's GF Value™ is $3.58, compared to a current price of $4.10 — trading 14.5% above its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. Hera SpA's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Hera SpA (HRASF), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hera SpA (HRASF) Overvalued in 2026?
Based on GuruFocus' analysis, Hera SpA stock appears to be overvalued.
The current stock price of $4.10 is trading 14.5% above its estimated GF Value™ of $3.58.
Key valuation signals for HRASF:
Financial Strength: 5 (near median its 10-year median of 5.00)
GF Value™: $3.58 vs. price of $4.10 (14.5% above fair value)
No single metric tells the full story. See the HRASF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hera SpA is an Italian coalescence of municipally owned companies that manages the supply of energy, water and environmental services, as well as public lighting and telecommunications to citizens and businesses. The company operates mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.
71GF Score
Get the complete analysis for HRASF
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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