IBERDROLA SA (1IBE.MI) Stock Fundamental Analysis
BIT:1IBE - Euronext Milan - ES0144580Y14 - Common Stock - Currency: EUR
Overall 1IBE gets a fundamental rating of 4 out of 10. We evaluated 1IBE against 17 industry peers in the Electric Utilities industry. While 1IBE has a great profitability rating, there are quite some concerns on its financial health. 1IBE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1IBE was profitable.
In the past year 1IBE had a positive cash flow from operations.
1IBE had positive earnings in each of the past 5 years.
1IBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1IBE's Return On Assets of 3.55% is in line compared to the rest of the industry. 1IBE outperforms 47.06% of its industry peers.
The Return On Equity of 1IBE (11.91%) is comparable to the rest of the industry.
1IBE has a Return On Invested Capital of 5.55%. This is comparable to the rest of the industry: 1IBE outperforms 47.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1IBE is below the industry average of 9.46%.
The last Return On Invested Capital (5.55%) for 1IBE 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 an excellent Profit Margin value of 12.54%, 1IBE belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
1IBE's Profit Margin has improved in the last couple of years.
1IBE has a better Operating Margin (21.75%) than 82.35% of its industry peers.
1IBE's Operating Margin has improved in the last couple of years.
The Gross Margin of 1IBE (46.19%) is comparable to the rest of the industry.
1IBE'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
1IBE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1IBE has been reduced compared to 1 year ago.
Compared to 5 years ago, 1IBE has less shares outstanding
Compared to 1 year ago, 1IBE has a worse debt to assets ratio.
2.2 Solvency
1IBE has an Altman-Z score of 1.34. This is a bad value and indicates that 1IBE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1IBE (1.34) is comparable to the rest of the industry.
1IBE has a debt to FCF ratio of 16.14. This is a negative value and a sign of low solvency as 1IBE would need 16.14 years to pay back of all of its debts.
The Debt to FCF ratio of 1IBE (16.14) is better than 70.59% of its industry peers.
1IBE has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.01, 1IBE is doing good in 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 | 1.34 |
ROIC/WACC0.87
WACC6.39%
2.3 Liquidity
A Current Ratio of 0.69 indicates that 1IBE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, 1IBE is doing worse than 76.47% of the companies in the same industry.
1IBE has a Quick Ratio of 0.69. This is a bad value and indicates that 1IBE is not financially healthy enough and could expect problems in meeting its short term obligations.
1IBE has a Quick ratio of 0.58. This is in the lower half of the industry: 1IBE underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
1IBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.99%, which is quite good.
Measured over the past years, 1IBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.43% on average per year.
The Revenue has decreased by -9.32% in the past year.
1IBE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.19% yearly.
EPS 1Y (TTM)17.99%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%-88.43%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%-4.28%
3.2 Future
The Earnings Per Share is expected to grow by 4.36% on average over the next years.
Based on estimates for the next years, 1IBE will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y10.65%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y4.36%
Revenue Next Year4.22%
Revenue Next 2Y4.01%
Revenue Next 3Y4.52%
Revenue Next 5Y2.3%
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
With a Price/Earnings ratio of 18.30, 1IBE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1IBE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.79. 1IBE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.44 indicates a correct valuation of 1IBE.
1IBE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1IBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
1IBE'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 1IBE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1IBE may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)1.6
EPS Next 2Y7.76%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
1IBE has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
1IBE's Dividend Yield is comparable with the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.51, 1IBE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of 1IBE is nicely growing with an annual growth rate of 32.04%!
Dividend Growth(5Y)32.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1IBE pays out 20.78% of its income as dividend. This is a sustainable payout ratio.
1IBE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.78%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
BIT:1IBE (4/15/2025, 7:00:00 PM)
15.19
+0.27 (+1.81%)
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 Cap97.83B
Analysts70.32
Price Target14.82 (-2.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.18
Dividend Growth(5Y)32.04%
DP20.78%
Div Incr Years0
Div Non Decr Years0
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)2.62%
PT rev (3m)3.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.73%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 16.44 | ||
| P/S | 2.19 | ||
| P/FCF | 27.56 | ||
| P/OCF | 8.2 | ||
| P/B | 2.08 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)0.83
EY5.46%
EPS(NY)0.92
Fwd EY6.08%
FCF(TTM)0.55
FCFY3.63%
OCF(TTM)1.85
OCFY12.19%
SpS6.95
BVpS7.32
TBVpS4.17
PEG (NY)1.72
PEG (5Y)1.6
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 | 1.34 |
F-Score6
WACC6.39%
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)17.99%
EPS 3Y15.45%
EPS 5Y11.43%
EPS Q2Q%-88.43%
EPS Next Y10.65%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y4.36%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%-4.28%
Revenue Next Year4.22%
Revenue Next 2Y4.01%
Revenue Next 3Y4.52%
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%