ERG SpAMIL:ERG +1.62%76 3-Year ROIIC % is 8.05 as of Dec. 2025, which is 36% below its 10-year median of 12.52. GuruFocus rates MIL:ERG with a GF Score™ of 76/100 and a GF Value™ of €24.41 (Fairly Valued). The stock has 7 warning signs investors should review. Among 393 Utilities - Independent Power Producers companies, ERG SpA ranks better than 68.19% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
ERG SpA's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 8.05%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for ERG SpA's 3-Year ROIIC % or its related term are showing as below:
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
ERG SpA 3-Year ROIIC % Related Terms
ERG SpA 3-Year ROIIC % Historical Data
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The historical data trend for ERG SpA's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, ERG SpA's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where ERG SpA's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
ERG SpA (MIL:ERG) has a 3-Year ROIIC % of 8.05 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on ERG SpA and its competitors. This is 36% below median its historical median of 12.52. According to the industry distribution chart, ERG SpA ranks #125 out of 393 companies in the Utilities - Independent Power Producers industry, placing it in the top 31.8%.
Is ERG SpA's 3-Year ROIIC % too high?
ERG SpA's current 3-Year ROIIC % of 8.05 is 36% below median its 10-year median of 12.52. The Utilities - Independent Power Producers industry median 3-Year ROIIC % is 1.37. ERG SpA's value of 8.05 is 487.6% above this industry median. Based on the distribution chart, ERG SpA ranks #125 out of 393 companies in the Utilities - Independent Power Producers industry, which is above 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 3-Year ROIIC % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, ERG SpA ranks #125 out of 393 companies for 3-Year ROIIC %. This puts ERG SpA in the upper half of its industry. The industry median 3-Year ROIIC % is 1.37. ERG SpA's value of 8.05 is 487.6% above this benchmark. While the company's 10-year median is 12.52 vs. the industry median of 1.37, 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 3-Year ROIIC % for an Utilities - Independent Power Producers company?
The median 3-Year ROIIC % among Utilities - Independent Power Producers companies is 1.37, based on 393 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ERG SpA's current 3-Year ROIIC % of 8.05 is 487.6% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on ERG SpA and its competitors. For the Utilities - Independent Power Producers industry, the median 3-Year ROIIC % is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERG SpA's current 3-Year ROIIC % is 8.05, which is 36% below median its own 10-year median of 12.52. 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 €24.41, compared to a current price of €23.88 — trading 2.2% below its estimated fair value. The current 3-Year ROIIC % is 8.05, which is 36% below median its 10-year median of 12.52 and 487.6% above the Utilities - Independent Power Producers industry median of 1.37. ERG SpA's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For ERG SpA (MIL:ERG), the current 3-Year ROIIC % is 8.05 as of Dec. 2025. 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 €23.88 is trading 2.2% below its estimated GF Value™ of €24.41.
GuruFocus considers ERG SpA to be Fairly Valued.
Key valuation signals for MIL:ERG:
3-Year ROIIC %: 8.05 (36% below median its 10-year median of 12.52)
GF Value™: €24.41 vs. price of €23.88 (2.2% below fair value)
Industry Position: 487.6% above the Utilities - Independent Power Producers median (#125 of 393)
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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