IBERDROLA SA (1IBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1IBE - ES0144580Y14 - Common Stock
18.325 EUR
-0.25 (-1.35%)
Overall 1IBE gets a fundamental rating of 4 out of 10. We evaluated 1IBE against 29 industry peers in the Electric Utilities industry. 1IBE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1IBE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1IBE had positive earnings in the past year.
- In the past year 1IBE had a positive cash flow from operations.
- 1IBE had positive earnings in each of the past 5 years.
- In the past 5 years 1IBE always reported a positive cash flow from operatings.
1.2 Ratios
- 1IBE has a Return On Assets (3.20%) which is in line with its industry peers.
- The Return On Equity of 1IBE (11.05%) is comparable to the rest of the industry.
- With a Return On Invested Capital value of 4.86%, 1IBE perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1IBE is in line with the industry average of 6.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 11.05% | ||
| ROIC | 4.86% |
ROA(3y)3.21%
ROA(5y)3.07%
ROE(3y)11.2%
ROE(5y)10.68%
ROIC(3y)5.56%
ROIC(5y)5.04%
1.3 Margins
- 1IBE has a Profit Margin (11.24%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of 1IBE has grown nicely.
- With a Operating Margin value of 18.59%, 1IBE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1IBE has grown nicely.
- 1IBE has a worse Gross Margin (47.23%) than 61.54% of its industry peers.
- In the last couple of years the Gross Margin of 1IBE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.59% | ||
| PM (TTM) | 11.24% | ||
| GM | 47.23% |
OM growth 3Y10.24%
OM growth 5Y9.44%
PM growth 3Y8.09%
PM growth 5Y6.06%
GM growth 3Y6.77%
GM growth 5Y3.58%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1IBE is destroying value.
- Compared to 1 year ago, 1IBE has less shares outstanding
- The number of shares outstanding for 1IBE has been reduced compared to 5 years ago.
- 1IBE has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that 1IBE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.42, 1IBE is in line with its industry, outperforming 57.69% of the companies in the same industry.
- The Debt to FCF ratio of 1IBE is 12.67, which is on the high side as it means it would take 1IBE, 12.67 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1IBE (12.67) is better than 73.08% of its industry peers.
- 1IBE has a Debt/Equity ratio of 1.00. This is a neutral value indicating 1IBE is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1IBE (1.00) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.74
WACC6.53%
2.3 Liquidity
- 1IBE has a Current Ratio of 0.75. This is a bad value and indicates that 1IBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of 1IBE (0.75) is worse than 80.77% of its industry peers.
- A Quick Ratio of 0.65 indicates that 1IBE may have some problems paying its short term obligations.
- The Quick ratio of 1IBE (0.65) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- 1IBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.58%.
- The Earnings Per Share has been growing by 13.83% on average over the past years. This is quite good.
- 1IBE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
- 1IBE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.19% yearly.
EPS 1Y (TTM)-19.58%
EPS 3Y19.14%
EPS 5Y13.83%
EPS Q2Q%13.73%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%6.11%
3.2 Future
- 1IBE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.61% yearly.
- The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y14.35%
EPS Next 2Y8.46%
EPS Next 3Y7.92%
EPS Next 5Y7.61%
Revenue Next Year-1.41%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.54%
Revenue Next 5Y3.87%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.20, the valuation of 1IBE can be described as rather expensive.
- 1IBE's Price/Earnings ratio is a bit more expensive when compared to the industry. 1IBE is more expensive than 76.92% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1IBE is valued at the same level.
- 1IBE is valuated rather expensively with a Price/Forward Earnings ratio of 18.66.
- 69.23% of the companies in the same industry are cheaper than 1IBE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1IBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
- 1IBE's Enterprise Value to EBITDA is on the same level as the industry average.
- 1IBE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1IBE is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.29 | ||
| EV/EBITDA | 11.08 |
4.3 Compensation for Growth
- 1IBE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.62
PEG (5Y)1.68
EPS Next 2Y8.46%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.91%, 1IBE has a reasonable but not impressive dividend return.
- 1IBE's Dividend Yield is comparable with the industry average which is at 3.10.
- Compared to an average S&P500 Dividend Yield of 1.81, 1IBE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- The dividend of 1IBE is nicely growing with an annual growth rate of 33.47%!
Dividend Growth(5Y)33.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 23.53% of the earnings are spent on dividend by 1IBE. This is a low number and sustainable payout ratio.
- 1IBE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.53%
EPS Next 2Y8.46%
EPS Next 3Y7.92%
IBERDROLA SA / 1IBE.MI FAQ
What is the ChartMill fundamental rating of IBERDROLA SA (1IBE.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1IBE.MI.
Can you provide the valuation status for IBERDROLA SA?
ChartMill assigns a valuation rating of 2 / 10 to IBERDROLA SA (1IBE.MI). This can be considered as Overvalued.
What is the profitability of 1IBE stock?
IBERDROLA SA (1IBE.MI) has a profitability rating of 5 / 10.
What are the PE and PB ratios of IBERDROLA SA (1IBE.MI) stock?
The Price/Earnings (PE) ratio for IBERDROLA SA (1IBE.MI) is 23.2 and the Price/Book (PB) ratio is 2.68.
What is the expected EPS growth for IBERDROLA SA (1IBE.MI) stock?
The Earnings per Share (EPS) of IBERDROLA SA (1IBE.MI) is expected to grow by 14.35% in the next year.