IBERDROLA SA (1IBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1IBE - ES0144580Y14 - Common Stock
18.625 EUR
+0.3 (+1.64%)
Taking everything into account, 1IBE scores 4 out of 10 in our fundamental rating. 1IBE was compared to 29 industry peers in the Electric Utilities industry. While 1IBE is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year 1IBE had a positive cash flow from operations.
- In the past 5 years 1IBE has always been profitable.
- In the past 5 years 1IBE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1IBE (3.20%) is comparable to the rest of the industry.
- 1IBE has a Return On Equity (11.05%) which is in line with its industry peers.
- 1IBE has a Return On Invested Capital (4.86%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1IBE 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
- With a Profit Margin value of 11.24%, 1IBE perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
- 1IBE's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 18.59%, 1IBE perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
- 1IBE's Operating Margin has improved in the last couple of years.
- 1IBE has a Gross Margin (47.23%) which is in line with 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1IBE is destroying value.
- 1IBE has less shares outstanding than it did 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's Altman-Z score of 1.43 is in line compared to the rest of the industry. 1IBE outperforms 58.62% of its industry peers.
- 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.
- With a Current ratio value of 0.75, 1IBE is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
- 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.
- 1IBE has a Quick ratio of 0.65. This is in the lower half of the industry: 1IBE underperforms 72.41% of its industry peers.
| 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.
- Measured over the past years, 1IBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.83% on average per year.
- The Revenue has been growing slightly by 0.50% 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)-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.
- The Revenue is expected to grow by 3.87% on average over the next years.
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
- 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.58, which indicates a rather expensive current valuation of 1IBE.
- Compared to the rest of the industry, the Price/Earnings ratio of 1IBE indicates a slightly more expensive valuation: 1IBE is more expensive than 72.41% of the companies listed in the same industry.
- 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.
- Based on the Price/Forward Earnings ratio of 18.96, the valuation of 1IBE can be described as rather expensive.
- 1IBE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1IBE is more expensive than 62.07% of the companies 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
- 1IBE's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, 1IBE is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
| 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.
- The decent profitability rating of 1IBE 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
- With a Yearly Dividend Yield of 2.91%, 1IBE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.10, 1IBE is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 1IBE pays a better dividend.
| 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
- 1IBE pays out 23.53% of its income as dividend. This is a 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.