IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
FRA:IBE1 - Deutsche Boerse Ag - ES0144580Y14 - Common Stock - Currency: EUR
Taking everything into account, IBE1 scores 4 out of 10 in our fundamental rating. 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
IBE1 had positive earnings in the past year.
IBE1 had a positive operating cash flow in the past year.
In the past 5 years IBE1 has always been profitable.
Each year in the past 5 years IBE1 had a positive operating cash flow.
1.2 Ratios
IBE1 has a Return On Assets (3.55%) which is comparable to the rest of the industry.
IBE1 has a Return On Equity (11.91%) which is in line with its industry peers.
IBE1 has a Return On Invested Capital of 5.55%. This is comparable to the rest of the industry: IBE1 outperforms 52.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IBE1 is below the industry average of 8.41%.
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
IBE1's Profit Margin of 12.54% is fine compared to the rest of the industry. IBE1 outperforms 76.47% of its industry peers.
IBE1's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 21.75%, IBE1 is doing good in the industry, outperforming 76.47% of the companies in the same industry.
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.
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.
The number of shares outstanding for IBE1 has been reduced compared to 1 year ago.
IBE1 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IBE1 is higher compared to a year ago.
2.2 Solvency
IBE1 has an Altman-Z score of 1.38. This is a bad value and indicates that IBE1 is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.38, IBE1 perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
IBE1 has a debt to FCF ratio of 16.14. This is a negative value and a sign of low solvency as IBE1 would need 16.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.14, IBE1 is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that IBE1 has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, IBE1 is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.88
WACC6.34%
2.3 Liquidity
IBE1 has a Current 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.
Looking at the Current ratio, with a value of 0.69, IBE1 is doing worse than 76.47% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that IBE1 may have some problems paying its short term obligations.
IBE1 has a worse Quick ratio (0.58) than 76.47% 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.
IBE1 shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
The Revenue has been growing slightly by 4.19% on average over the past years.
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 4.99% on average over the next years.
IBE1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.99%
Revenue Next Year2.34%
Revenue Next 2Y2.34%
Revenue Next 3Y2.82%
Revenue Next 5Y2.8%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.89, which indicates a rather expensive current valuation of IBE1.
IBE1's Price/Earnings ratio is a bit more expensive when compared to the industry. IBE1 is more expensive than 64.71% of the companies in the same industry.
IBE1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
IBE1 is valuated correctly with a Price/Forward Earnings ratio of 16.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBE1 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.03. IBE1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
IBE1's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBE1 indicates a somewhat cheap valuation: IBE1 is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.39 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IBE1 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 3.17%.
Compared to an average industry Dividend Yield of 4.49, IBE1 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, IBE1 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
IBE1 pays out 20.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of IBE1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.78%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
FRA:IBE1 (6/19/2025, 7:00:00 PM)
16.2
0 (0%)
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 Cap104.34B
Analysts70.32
Price Target15.77 (-2.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)3.19%
PT rev (3m)8.77%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-41.85%
EPS NY rev (1m)0%
EPS NY rev (3m)3.53%
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 | 21.89 | ||
| Fwd PE | 16.5 | ||
| P/S | 2.33 | ||
| P/FCF | 29.39 | ||
| P/OCF | 8.75 | ||
| P/B | 2.21 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 8.82 |
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
WACC6.34%
ROIC/WACC0.88
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 5Y4.99%
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 5Y2.8%
EBIT growth 1Y8.43%
EBIT growth 3Y15.29%
EBIT growth 5Y14.03%
EBIT Next Year63.34%
EBIT Next 3Y22.03%
EBIT Next 5Y13.78%
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%