IBERDROLA SA (1IBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1IBE - ES0144580Y14 - Common Stock
18.805 EUR
+0.18 (+0.97%)
1IBE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Electric Utilities industry. There are concerns on the financial health of 1IBE while its profitability can be described as average. 1IBE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1IBE was profitable.
- 1IBE had a positive operating cash flow in the past year.
- Each year in the past 5 years 1IBE has been profitable.
- Each year in the past 5 years 1IBE had a positive operating cash flow.
1.2 Ratios
- 1IBE's Return On Assets of 3.20% is in line compared to the rest of the industry. 1IBE outperforms 58.62% of its industry peers.
- 1IBE has a Return On Equity of 11.05%. This is comparable to the rest of the industry: 1IBE outperforms 58.62% of its industry peers.
- The Return On Invested Capital of 1IBE (4.86%) is comparable to the rest of the industry.
- 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.
- 1IBE's Profit Margin has improved in the last couple of years.
- 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.
- 1IBE's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 47.23%, 1IBE is in line with its industry, outperforming 41.38% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1IBE is destroying value.
- Compared to 1 year ago, 1IBE has less shares outstanding
- Compared to 5 years ago, 1IBE has less shares outstanding
- 1IBE has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that 1IBE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.43, 1IBE is in line with its industry, outperforming 58.62% of the companies in the same industry.
- The Debt to FCF ratio of 1IBE is 12.67, which is on the high side as it means it would take 1IBE, 12.67 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 12.67, 1IBE belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- A Debt/Equity ratio of 1.00 indicates that 1IBE is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1IBE (1.00) is better than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.74
WACC6.56%
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.
- 1IBE has a Current ratio of 0.75. This is in the lower half of the industry: 1IBE underperforms 75.86% of its industry peers.
- A Quick Ratio of 0.65 indicates that 1IBE may have some problems paying its short term obligations.
- With a Quick ratio value of 0.65, 1IBE is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The earnings per share for 1IBE have decreased strongly by -19.58% in the last year.
- The Earnings Per Share has been growing by 13.83% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 0.50% in the past year.
- Measured over the past years, 1IBE shows a small growth in Revenue. The Revenue has been growing by 4.19% on average per year.
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
- The Earnings Per Share is expected to grow by 7.61% on average over the next years.
- 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 23.80.
- 1IBE's Price/Earnings ratio is a bit more expensive when compared to the industry. 1IBE is more expensive than 72.41% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, 1IBE is valued at the same level.
- The Price/Forward Earnings ratio is 19.15, which indicates a rather expensive current 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.
- 1IBE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 19.15 |
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.
- 1IBE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1IBE is cheaper than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 11.28 |
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)1.66
PEG (5Y)1.72
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
- On average, the dividend of 1IBE grows each year by 33.47%, which is quite nice.
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 3 / 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 6 / 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 23.8 and the Price/Book (PB) ratio is 2.75.
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.