ERG SpAMIL:ERG -1.09%78 Return-on-Tangible-Equity is 43.01% as of Mar. 2026, which is 139% above its 10-year median of 17.99. GuruFocus rates MIL:ERG with a GF Score™ of 78/100 and a GF Value™ of €24.40 (Fairly Valued). The stock has 7 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, ERG SpA ranks better than 74.41% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ERG SpA's annualized net income for the quarter that ended in Mar. 2026 was €244.0 Mil. ERG SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €567.3 Mil. Therefore, ERG SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 43.01%.
The historical rank and industry rank for ERG SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:ERG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.04 Med: 17.99 Max: 61.64
Current: 13
During the past 13 years, ERG SpA's highest Return-on-Tangible-Equity was 61.64%. The lowest was 4.04%. And the median was 17.99%.
MIL:ERG's Return-on-Tangible-Equity is ranked better than 74.41% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.69
vs MIL:ERG: 13.00
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ERG SpA Return-on-Tangible-Equity Related Terms
ERG SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ERG SpA's Return-on-Tangible-Equity can be seen below:
* 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.
For the Utilities - Renewable subindustry, ERG SpA's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
ERG SpA Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, ERG SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ERG SpA's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 43.01% mean?
ERG SpA (MIL:ERG) has a Return-on-Tangible-Equity of 43.01% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ERG SpA and its competitors. This is 139% above median its historical median of 17.99. Over the past decade, ERG SpA's Return-on-Tangible-Equity has ranged from 4.04 to 61.64. According to the industry distribution chart, ERG SpA ranks #109 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 25.6%.
Is ERG SpA's Return-on-Tangible-Equity too high?
ERG SpA's current Return-on-Tangible-Equity of 43.01% is 139% above median its 10-year median of 17.99. Over the past 10 years, this metric has ranged from a low of 4.04 to a high of 61.64. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.69. ERG SpA's value of 43.01% is 817.1% above this industry median. Based on the distribution chart, ERG SpA ranks #109 out of 426 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, ERG SpA has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ERG SpA's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, ERG SpA ranks #109 out of 426 companies for Return-on-Tangible-Equity. This puts ERG SpA in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.69. ERG SpA's value of 43.01% is 817.1% above this benchmark. Historically, ERG SpA's own Return-on-Tangible-Equity has ranged from 4.04 to 61.64 over the past decade. While the company's 10-year median is 17.99 vs. the industry median of 4.69, ERG SpA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.69, based on 426 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ERG SpA's current Return-on-Tangible-Equity of 43.01% is 817.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ERG SpA and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERG SpA's current Return-on-Tangible-Equity is 43.01%, which is 139% above median its own 10-year median of 17.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERG SpA stock overvalued right now?
Based on GuruFocus' analysis, ERG SpA (MIL:ERG) is currently considered Fairly Valued. The stock's GF Value™ is €24.40, compared to a current price of €23.66 — trading 3% below its estimated fair value. The current Return-on-Tangible-Equity is 43.01%, which is 139% above median its 10-year median of 17.99 and 817.1% above the Utilities - Independent Power Producers industry median of 4.69. ERG SpA's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ERG SpA (MIL:ERG), the current Return-on-Tangible-Equity is 43.01% as of Mar. 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 ERG SpA (MIL:ERG) Overvalued in 2026?
Based on GuruFocus' analysis, ERG SpA stock appears to be undervalued.
The current stock price of €23.66 is trading 3% below its estimated GF Value™ of €24.40.
GuruFocus considers ERG SpA to be Fairly Valued.
Key valuation signals for MIL:ERG:
Return-on-Tangible-Equity: 43.01% (139% above median its 10-year median of 17.99)
GF Value™: €24.40 vs. price of €23.66 (3% below fair value)
Industry Position: 817.1% above the Utilities - Independent Power Producers median (#109 of 426)
No single metric tells the full story. See the MIL:ERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ERG SpA produces electricity from clean, renewable, and sustainable sources. Its energy comes from the combination of natural resources such as wind and sun. The company produces wind power, and electricity as a hydroelectric operator to markets across Europe. Electricity is also generated from natural gas operations located in Italy. ERG's wind power production is handled by subsidiary ENG Renew which focuses on developing, building, and operating wind assets. Hydropower and natural gas operations are split off into ERG Power Generation. The company's hydro assets include plants, dams, reservoirs, and a pumping station. Electricity from the plant is either fed into Italy's national grid or used to power other industrial plants.
78GF Score
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