IBERDROLA SA (1IBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1IBE - ES0144580Y14 - Common Stock
18.625 EUR
+0.3 (+1.64%)
Overall 1IBE gets a fundamental rating of 4 out of 10. We evaluated 1IBE against 29 industry peers in the Electric Utilities industry. 1IBE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1IBE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1IBE had positive earnings in the past year.
- In the past year 1IBE had a positive cash flow from operations.
- In the past 5 years 1IBE has always been profitable.
- Each year in the past 5 years 1IBE had a positive operating cash flow.
1.2 Ratios
- 1IBE has a Return On Assets of 3.20%. This is comparable to the rest of the industry: 1IBE outperforms 58.62% of its industry peers.
- 1IBE has a Return On Equity (11.05%) which is in line with its industry peers.
- 1IBE's Return On Invested Capital of 4.86% is in line compared to the rest of the industry. 1IBE outperforms 58.62% of its industry peers.
- 1IBE had an Average Return On Invested Capital over the past 3 years of 5.56%. This is in line with the industry average of 6.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 11.05% | ||
| ROIC | 4.86% |
ROA(3y)3.21%
ROA(5y)3.07%
ROE(3y)11.2%
ROE(5y)10.68%
ROIC(3y)5.56%
ROIC(5y)5.04%
1.3 Margins
- Looking at the Profit Margin, with a value of 11.24%, 1IBE is in line with its industry, outperforming 55.17% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1IBE has grown nicely.
- Looking at the Operating Margin, with a value of 18.59%, 1IBE is in line with its industry, outperforming 55.17% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1IBE has grown nicely.
- 1IBE has a Gross Margin of 47.23%. This is comparable to the rest of the industry: 1IBE outperforms 41.38% of its industry peers.
- In the last couple of years the Gross Margin of 1IBE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.59% | ||
| PM (TTM) | 11.24% | ||
| GM | 47.23% |
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 1IBE is destroying value.
- The number of shares outstanding for 1IBE has been reduced compared to 1 year ago.
- 1IBE has less shares outstanding than it did 5 years ago.
- 1IBE has a worse debt/assets ratio than last year.
2.2 Solvency
- 1IBE has an Altman-Z score of 1.43. This is a bad value and indicates that 1IBE is not financially healthy and even has some risk of bankruptcy.
- 1IBE has a Altman-Z score (1.43) which is comparable to the rest of the industry.
- 1IBE has a debt to FCF ratio of 12.67. This is a negative value and a sign of low solvency as 1IBE would need 12.67 years to pay back of all of its debts.
- 1IBE has a better Debt to FCF ratio (12.67) than 82.76% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that 1IBE is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.00, 1IBE is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.74
WACC6.55%
2.3 Liquidity
- 1IBE has a Current Ratio of 0.75. This is a bad value and indicates that 1IBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.75, 1IBE is doing worse than 75.86% of the companies in the same industry.
- 1IBE has a Quick Ratio of 0.75. This is a bad value and indicates that 1IBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1IBE (0.65) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- 1IBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.58%.
- The Earnings Per Share has been growing by 13.83% on average over the past years. This is quite good.
- 1IBE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
- 1IBE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.19% yearly.
EPS 1Y (TTM)-19.58%
EPS 3Y19.14%
EPS 5Y13.83%
EPS Q2Q%13.73%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y4.58%
Revenue growth 5Y4.19%
Sales Q2Q%6.11%
3.2 Future
- 1IBE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.61% yearly.
- 1IBE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y14.35%
EPS Next 2Y8.46%
EPS Next 3Y7.92%
EPS Next 5Y7.61%
Revenue Next Year-1.41%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.54%
Revenue Next 5Y3.87%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1IBE is valuated rather expensively with a Price/Earnings ratio of 23.58.
- 72.41% of the companies in the same industry are cheaper than 1IBE, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 1IBE to the average of the S&P500 Index (27.25), we can say 1IBE is valued inline with the index average.
- A Price/Forward Earnings ratio of 18.96 indicates a rather expensive valuation of 1IBE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1IBE indicates a slightly more expensive valuation: 1IBE is more expensive than 62.07% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1IBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1IBE is on the same level as its industry peers.
- 75.86% of the companies in the same industry are more expensive than 1IBE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1IBE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)1.7
EPS Next 2Y8.46%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- 1IBE has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.10, 1IBE is paying slightly less dividend.
- 1IBE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- The dividend of 1IBE is nicely growing with an annual growth rate of 33.47%!
Dividend Growth(5Y)33.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 23.53% of the earnings are spent on dividend by 1IBE. This is a low number and sustainable payout ratio.
- The dividend of 1IBE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.53%
EPS Next 2Y8.46%
EPS Next 3Y7.92%
IBERDROLA SA / 1IBE.MI FAQ
What is the ChartMill fundamental rating of IBERDROLA SA (1IBE.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1IBE.MI.
Can you provide the valuation status for IBERDROLA SA?
ChartMill assigns a valuation rating of 2 / 10 to IBERDROLA SA (1IBE.MI). This can be considered as Overvalued.
What is the profitability of 1IBE stock?
IBERDROLA SA (1IBE.MI) has a profitability rating of 5 / 10.
What are the PE and PB ratios of IBERDROLA SA (1IBE.MI) stock?
The Price/Earnings (PE) ratio for IBERDROLA SA (1IBE.MI) is 23.58 and the Price/Book (PB) ratio is 2.73.
What is the expected EPS growth for IBERDROLA SA (1IBE.MI) stock?
The Earnings per Share (EPS) of IBERDROLA SA (1IBE.MI) is expected to grow by 14.35% in the next year.