IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
FRA:IBE1 - Deutsche Boerse Ag - ES0144580Y14 - Common Stock - Currency: EUR
IBE1 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 industry peers in the Electric Utilities industry. IBE1 scores excellent on profitability, but there are concerns on its financial health. IBE1 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IBE1 was profitable.
In the past year IBE1 had a positive cash flow from operations.
IBE1 had positive earnings in each of the past 5 years.
IBE1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.55%, IBE1 is in line with its industry, outperforming 43.75% of the companies in the same industry.
IBE1 has a Return On Equity (11.91%) which is in line with its industry peers.
IBE1 has a Return On Invested Capital (5.55%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IBE1 is below the industry average of 8.82%.
The 3 year average ROIC (5.50%) for IBE1 is below the current ROIC(5.55%), indicating increased profibility in the last year.
| 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
IBE1 has a Profit Margin of 12.54%. This is amongst the best in the industry. IBE1 outperforms 81.25% of its industry peers.
IBE1's Profit Margin has improved in the last couple of years.
The Operating Margin of IBE1 (21.75%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of IBE1 has grown nicely.
Looking at the Gross Margin, with a value of 46.19%, IBE1 is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of IBE1 has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IBE1 is destroying value.
Compared to 1 year ago, IBE1 has less shares outstanding
IBE1 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IBE1 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that IBE1 is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.36, IBE1 perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
IBE1 has a Debt to FCF ratio of 16.14. This is in the better half of the industry: IBE1 outperforms 68.75% 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 Debt to Equity ratio of 1.01. This is in the better half of the industry: IBE1 outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.89
WACC6.27%
2.3 Liquidity
A Current Ratio of 0.69 indicates that IBE1 may have some problems paying its short term obligations.
The Current ratio of IBE1 (0.69) is worse than 81.25% of its industry peers.
A Quick Ratio of 0.58 indicates that IBE1 may have some problems paying its short term obligations.
IBE1 has a Quick ratio of 0.58. This is amonst the worse of the industry: IBE1 underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
IBE1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.49%.
Measured over the past years, IBE1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.43% on average per year.
Looking at the last year, IBE1 shows a decrease in Revenue. The Revenue has decreased by -3.50% in the last year.
IBE1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.19% yearly.
EPS 1Y (TTM)-16.49%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%-22.89%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%1.47%
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 4.62% on average per year.
IBE1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.44% yearly.
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.62%
Revenue Next Year2.34%
Revenue Next 2Y2.34%
Revenue Next 3Y2.82%
Revenue Next 5Y2.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 21.28 indicates a rather expensive valuation of IBE1.
62.50% of the companies in the same industry are cheaper than IBE1, based on the Price/Earnings ratio.
IBE1 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.04 indicates a correct valuation of IBE1.
The rest of the industry has a similar Price/Forward Earnings ratio as IBE1.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, IBE1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
IBE1's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, IBE1 is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.39 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IBE1 does not grow enough to justify the current Price/Earnings ratio.
IBE1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)1.86
EPS Next 2Y8.44%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
IBE1 has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
IBE1's Dividend Yield is comparable with the industry average which is at 4.20.
IBE1's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of IBE1 is nicely growing with an annual growth rate of 32.04%!
Dividend Growth(5Y)32.04%
Div Incr Years7
Div Non Decr Years7
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 (7/21/2025, 7:00:00 PM)
15.75
+0.13 (+0.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners40.24%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap100.80B
Analysts70.32
Price Target15.77 (0.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.18
Dividend Growth(5Y)32.04%
DP20.78%
Div Incr Years7
Div Non Decr Years7
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)0.53%
PT rev (3m)6.38%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 16.04 | ||
| P/S | 2.25 | ||
| P/FCF | 28.39 | ||
| P/OCF | 8.45 | ||
| P/B | 2.14 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)0.74
EY4.7%
EPS(NY)0.98
Fwd EY6.23%
FCF(TTM)0.55
FCFY3.52%
OCF(TTM)1.86
OCFY11.83%
SpS6.99
BVpS7.36
TBVpS4.2
PEG (NY)1.85
PEG (5Y)1.86
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 | 1.36 |
F-Score6
WACC6.27%
ROIC/WACC0.89
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)-16.49%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%-22.89%
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.62%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%1.47%
Revenue Next Year2.34%
Revenue Next 2Y2.34%
Revenue Next 3Y2.82%
Revenue Next 5Y2.44%
EBIT growth 1Y8.43%
EBIT growth 3Y15.29%
EBIT growth 5Y14.03%
EBIT Next Year63.34%
EBIT Next 3Y22.03%
EBIT Next 5Y13.38%
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%