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 17 industry peers in the Electric Utilities industry. While IBE1 is still in line with the averages on profitability rating, there are concerns on its financial health. IBE1 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IBE1 was profitable.
IBE1 had a positive operating cash flow in the past year.
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 47.06% of the companies in the same industry.
IBE1 has a Return On Equity (11.91%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.55%, IBE1 perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IBE1 is below the industry average of 8.47%.
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
With a decent Profit Margin value of 12.54%, IBE1 is doing good in the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Profit Margin of IBE1 has grown nicely.
With a decent Operating Margin value of 21.75%, IBE1 is doing good in the industry, outperforming 70.59% of the companies in the same industry.
IBE1's Operating Margin has improved in the last couple of years.
The Gross Margin of IBE1 (46.19%) is comparable to the rest of the 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
IBE1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
IBE1 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IBE1 has less shares outstanding
Compared to 1 year ago, IBE1 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that IBE1 is in the distress zone and has some risk of bankruptcy.
IBE1 has a better Altman-Z score (1.38) than 70.59% of its industry peers.
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 64.71% 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.
The Debt to Equity ratio of IBE1 (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.87
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.69 indicates that IBE1 may have some problems paying its short term obligations.
With a Current ratio value of 0.69, IBE1 is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
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 82.35% 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 for IBE1 have decreased strongly by -16.49% in the last year.
The Earnings Per Share has been growing by 11.43% on average over the past years. This is quite good.
The Revenue has decreased by -3.50% in the past 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)-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
The Earnings Per Share is expected to grow by 4.36% on average over the next years.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.36%
Revenue Next Year2.34%
Revenue Next 2Y2.34%
Revenue Next 3Y2.82%
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
A Price/Earnings ratio of 21.89 indicates a rather expensive valuation of IBE1.
Based on the Price/Earnings ratio, IBE1 is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of IBE1 to the average of the S&P500 Index (26.25), we can say IBE1 is valued inline with the index average.
IBE1 is valuated correctly with a Price/Forward Earnings ratio of 16.50.
IBE1's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, IBE1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBE1 is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, IBE1 is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.38 | ||
| EV/EBITDA | 8.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IBE1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)1.91
EPS Next 2Y8.44%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
IBE1 has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
IBE1's Dividend Yield is comparable with the industry average which is at 4.27.
IBE1's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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
IBE1 pays out 20.78% of its income as dividend. This is a 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 (5/30/2025, 7:00:00 PM)
16.195
+0.09 (+0.53%)
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 Cap104.30B
Analysts70.32
Price Target15.28 (-5.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)3.09%
PT rev (3m)6.4%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 16.5 | ||
| P/S | 2.33 | ||
| P/FCF | 29.38 | ||
| P/OCF | 8.75 | ||
| P/B | 2.21 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)0.74
EY4.57%
EPS(NY)0.98
Fwd EY6.06%
FCF(TTM)0.55
FCFY3.4%
OCF(TTM)1.85
OCFY11.43%
SpS6.95
BVpS7.32
TBVpS4.17
PEG (NY)1.9
PEG (5Y)1.91
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 | 1.38 |
F-Score6
WACC6.35%
ROIC/WACC0.87
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 5Y4.36%
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 5Y2.3%
EBIT growth 1Y8.43%
EBIT growth 3Y15.29%
EBIT growth 5Y14.03%
EBIT Next Year63.34%
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%