ERG SpAMIL:ERG +1.40%76 ROE % is 12.13% as of Mar. 2026, which is 53% above its 10-year median of 7.93. GuruFocus rates MIL:ERG with a GF Score™ of 76/100 and a GF Value™ of €24.37 (Fairly Valued). The stock has 5 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, ERG SpA ranks worse than 51.73% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ERG SpA's annualized net income for the quarter that ended in Mar. 2026 was €244.0 Mil. ERG SpA's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €2,011.6 Mil. Therefore, ERG SpA's annualized ROE % for the quarter that ended in Mar. 2026 was 12.13%.
The historical rank and industry rank for ERG SpA's ROE % or its related term are showing as below:
MIL:ERG'
s ROE % Range Over the Past 10 Years
Min: 1.75 Med: 7.93 Max: 21.03
Current: 3.49
During the past 13 years, ERG SpA's highest ROE % was 21.03%. The lowest was 1.75%. And the median was 7.93%.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
ERG SpA ROE % Related Terms
ERG SpA ROE % Historical Data
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The historical data trend for ERG SpA's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, ERG SpA's ROE % distribution charts can be found below:
* The bar in red indicates where ERG SpA's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
ERG SpA (MIL:ERG) has a ROE % of 12.13% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ERG SpA and its competitors. This is 53% above median its historical median of 7.93. Over the past decade, ERG SpA's ROE % has ranged from 1.75 to 21.03. According to the industry distribution chart, ERG SpA ranks #224 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 51.7%.
Is ERG SpA's ROE % too high?
ERG SpA's current ROE % of 12.13% is 53% above median its 10-year median of 7.93. Over the past 10 years, this metric has ranged from a low of 1.75 to a high of 21.03. The Utilities - Independent Power Producers industry median ROE % is 3.80. ERG SpA's value of 12.13% is 219.2% above this industry median. Based on the distribution chart, ERG SpA ranks #224 out of 433 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, ERG SpA has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ERG SpA's ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, ERG SpA ranks #224 out of 433 companies for ROE %. This places ERG SpA in the lower half of its industry. The industry median ROE % is 3.80. ERG SpA's value of 12.13% is 219.2% above this benchmark. Historically, ERG SpA's own ROE % has ranged from 1.75 to 21.03 over the past decade. While the company's 10-year median is 7.93 vs. the industry median of 3.80, 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 ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ERG SpA's current ROE % of 12.13% is 219.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ERG SpA and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERG SpA's current ROE % is 12.13%, which is 53% above median its own 10-year median of 7.93. 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 €24.37, compared to a current price of €23.22 — trading 4.7% below its estimated fair value. The current ROE % is 12.13%, which is 53% above median its 10-year median of 7.93 and 219.2% above the Utilities - Independent Power Producers industry median of 3.80. ERG SpA's overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For ERG SpA (MIL:ERG), the current ROE % is 12.13% 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 €23.22 is trading 4.7% below its estimated GF Value™ of €24.37.
GuruFocus considers ERG SpA to be Fairly Valued.
Key valuation signals for MIL:ERG:
ROE %: 12.13% (53% above median its 10-year median of 7.93)
GF Value™: €24.37 vs. price of €23.22 (4.7% below fair value)
Industry Position: 219.2% above the Utilities - Independent Power Producers median (#224 of 433)
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.
76GF Score
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