IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
FRA:IBE1 - Deutsche Boerse Ag - ES0144580Y14 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to IBE1. IBE1 was compared to 15 industry peers in the Electric Utilities industry. IBE1 has a medium profitability rating, but doesn't score so well on its financial health evaluation. IBE1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IBE1 had positive earnings in the past year.
In the past year IBE1 had a positive cash flow from operations.
Each year in the past 5 years IBE1 has been profitable.
IBE1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IBE1 has a Return On Assets of 3.55%. This is comparable to the rest of the industry: IBE1 outperforms 46.67% of its industry peers.
The Return On Equity of IBE1 (11.91%) is worse than 60.00% of its industry peers.
IBE1's Return On Invested Capital of 5.55% is in line compared to the rest of the industry. IBE1 outperforms 46.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IBE1 is below the industry average of 9.27%.
The last Return On Invested Capital (5.55%) for IBE1 is above the 3 year average (5.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 11.91% | ||
| ROIC | 5.55% |
ROA(3y)3.18%
ROA(5y)3.05%
ROE(3y)11.2%
ROE(5y)10.68%
ROIC(3y)5.5%
ROIC(5y)5%
1.3 Margins
The Profit Margin of IBE1 (12.54%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of IBE1 has grown nicely.
IBE1's Operating Margin of 21.75% is fine compared to the rest of the industry. IBE1 outperforms 73.33% of its industry peers.
IBE1's Operating Margin has improved in the last couple of years.
IBE1 has a Gross Margin (46.19%) which is in line with its industry peers.
IBE1's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.75% | ||
| PM (TTM) | 12.54% | ||
| GM | 46.19% |
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
IBE1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IBE1 has less shares outstanding
The number of shares outstanding for IBE1 has been reduced compared to 5 years ago.
The debt/assets ratio for IBE1 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that IBE1 is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IBE1 (1.37) is comparable to the rest of the industry.
The Debt to FCF ratio of IBE1 is 16.14, which is on the high side as it means it would take IBE1, 16.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IBE1 (16.14) is better than 73.33% of its industry peers.
IBE1 has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
IBE1 has a better Debt to Equity ratio (1.01) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.86
WACC6.43%
2.3 Liquidity
A Current Ratio of 0.69 indicates that IBE1 may have some problems paying its short term obligations.
IBE1 has a Current ratio of 0.69. This is amonst the worse of the industry: IBE1 underperforms 80.00% of its industry peers.
IBE1 has a Quick Ratio of 0.69. This is a bad value and indicates that IBE1 is not financially healthy enough and could expect problems in meeting its short term obligations.
IBE1 has a worse Quick ratio (0.58) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.66% over the past year.
IBE1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.43% yearly.
Looking at the last year, IBE1 shows a decrease in Revenue. The Revenue has decreased by -9.32% in the last year.
Measured over the past years, IBE1 shows a small growth in Revenue. The Revenue has been growing by 4.19% on average per year.
EPS 1Y (TTM)74.66%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%178.77%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%-5.8%
3.2 Future
Based on estimates for the next years, IBE1 will show a small growth in Earnings Per Share. The EPS will grow by 4.36% on average per year.
Based on estimates for the next years, IBE1 will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.36%
Revenue Next Year3.08%
Revenue Next 2Y3.24%
Revenue Next 3Y3.19%
Revenue Next 5Y2.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.21, which indicates a very decent valuation of IBE1.
Compared to the rest of the industry, the Price/Earnings ratio of IBE1 indicates a rather cheap valuation: IBE1 is cheaper than 86.67% of the companies listed in the same industry.
IBE1's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
The Price/Forward Earnings ratio is 16.12, which indicates a correct valuation of IBE1.
IBE1's Price/Forward Earnings ratio is in line with the industry average.
IBE1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
IBE1's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as IBE1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.72 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IBE1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.89
EPS Next 2Y8.44%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, IBE1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.44, IBE1 is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, IBE1 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of IBE1 grows each year by 32.04%, which is quite nice.
Dividend Growth(5Y)32.04%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
20.78% of the earnings are spent on dividend by IBE1. This is a low number and sustainable payout ratio.
IBE1's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.78%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
FRA:IBE1 (5/5/2025, 7:00:00 PM)
15.83
+0.12 (+0.76%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners44.16%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap101.95B
Analysts70.32
Price Target14.92 (-5.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend0.18
Dividend Growth(5Y)32.04%
DP20.78%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.45%
Min EPS beat(2)-80.16%
Max EPS beat(2)29.26%
EPS beat(4)3
Avg EPS beat(4)11.1%
Min EPS beat(4)-80.16%
Max EPS beat(4)75.88%
EPS beat(8)7
Avg EPS beat(8)12.58%
EPS beat(12)9
Avg EPS beat(12)11.89%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-19.11%
Min Revenue beat(2)-24.89%
Max Revenue beat(2)-13.33%
Revenue beat(4)1
Avg Revenue beat(4)-11.25%
Min Revenue beat(4)-24.89%
Max Revenue beat(4)1.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.78%
PT rev (3m)3.95%
EPS NQ rev (1m)-40.65%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.78%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 16.12 | ||
| P/S | 2.28 | ||
| P/FCF | 28.72 | ||
| P/OCF | 8.55 | ||
| P/B | 2.16 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.55
EY9.79%
EPS(NY)0.98
Fwd EY6.2%
FCF(TTM)0.55
FCFY3.48%
OCF(TTM)1.85
OCFY11.7%
SpS6.95
BVpS7.32
TBVpS4.17
PEG (NY)0.89
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 11.91% | ||
| ROCE | 7.59% | ||
| ROIC | 5.55% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 6.89% | ||
| OM | 21.75% | ||
| PM (TTM) | 12.54% | ||
| GM | 46.19% | ||
| FCFM | 7.93% |
ROA(3y)3.18%
ROA(5y)3.05%
ROE(3y)11.2%
ROE(5y)10.68%
ROIC(3y)5.5%
ROIC(5y)5%
ROICexc(3y)5.76%
ROICexc(5y)5.23%
ROICexgc(3y)6.89%
ROICexgc(5y)6.28%
ROCE(3y)7.53%
ROCE(5y)6.84%
ROICexcg growth 3Y11.25%
ROICexcg growth 5Y8.32%
ROICexc growth 3Y11.81%
ROICexc growth 5Y9.34%
OM growth 3Y10.24%
OM growth 5Y9.44%
PM growth 3Y8.09%
PM growth 5Y6.06%
GM growth 3Y6.77%
GM growth 5Y3.58%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 16.14 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 112.99% | ||
| Cap/Sales | 18.72% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 69.57% | ||
| Profit Quality | 63.26% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.37 |
F-Score6
WACC6.43%
ROIC/WACC0.86
Cap/Depr(3y)124.06%
Cap/Depr(5y)126.79%
Cap/Sales(3y)15.76%
Cap/Sales(5y)16.52%
Profit Quality(3y)78.69%
Profit Quality(5y)67.15%
High Growth Momentum
Growth
EPS 1Y (TTM)74.66%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%178.77%
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.36%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%-5.8%
Revenue Next Year3.08%
Revenue Next 2Y3.24%
Revenue Next 3Y3.19%
Revenue Next 5Y2.3%
EBIT growth 1Y8.43%
EBIT growth 3Y15.29%
EBIT growth 5Y14.03%
EBIT Next Year61.99%
EBIT Next 3Y22.03%
EBIT Next 5Y13.18%
FCF growth 1Y-16.53%
FCF growth 3Y44.04%
FCF growth 5Y21.6%
OCF growth 1Y-1.69%
OCF growth 3Y13.73%
OCF growth 5Y11.52%