IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
FRA:IBE1 - Deutsche Boerse Ag - ES0144580Y14 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to IBE1. IBE1 was compared to 17 industry peers in the Electric Utilities industry. There are concerns on the financial health of IBE1 while its profitability can be described as average. IBE1 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
IBE1 had positive earnings in the past year.
In the past year IBE1 had a positive cash flow from operations.
IBE1 had positive earnings in each of the past 5 years.
In the past 5 years IBE1 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.55%, IBE1 is in line with its industry, outperforming 41.18% of the companies in the same industry.
The Return On Equity of IBE1 (11.91%) is worse than 64.71% of its industry peers.
IBE1 has a Return On Invested Capital of 5.55%. This is comparable to the rest of the industry: IBE1 outperforms 41.18% of its industry peers.
IBE1 had an Average Return On Invested Capital over the past 3 years of 5.50%. This is below the industry average of 9.46%.
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
With a decent Profit Margin value of 12.54%, IBE1 is doing good in the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Profit Margin of IBE1 has grown nicely.
Looking at the Operating Margin, with a value of 21.75%, IBE1 is in the better half of 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.
IBE1'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IBE1 is destroying value.
IBE1 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IBE1 has been reduced compared to 5 years ago.
IBE1 has a worse debt/assets ratio than last year.
2.2 Solvency
IBE1 has an Altman-Z score of 1.34. This is a bad value and indicates that IBE1 is not financially healthy and even has some risk of bankruptcy.
IBE1 has a Altman-Z score (1.34) which is in line with its industry peers.
The Debt to FCF ratio of IBE1 is 16.14, which is on the high side as it means it would take IBE1, 16.14 years of fcf income to pay off all of its debts.
IBE1 has a Debt to FCF ratio of 16.14. This is in the better half of the industry: IBE1 outperforms 64.71% of its industry peers.
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 64.71% 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
WACC6.41%
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 82.35% of the companies in the same industry.
IBE1 has a Quick 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.
IBE1 has a worse Quick ratio (0.58) than 82.35% 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 has grown by an nice 17.99% over the past year.
The Earnings Per Share has been growing by 11.43% on average over the past years. This is quite good.
Looking at the last year, IBE1 shows a decrease in Revenue. The Revenue has decreased by -9.32% in the last year.
Measured over the past years, IBE1 shows a small growth in Revenue. The Revenue has been growing by 4.19% on average per year.
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
IBE1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.36% yearly.
IBE1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
EPS Next 5Y4.36%
Revenue Next Year4.22%
Revenue Next 2Y4.01%
Revenue Next 3Y4.52%
Revenue Next 5Y2.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.77, which indicates a rather expensive current valuation of IBE1.
64.71% of the companies in the same industry are cheaper than IBE1, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.79, IBE1 is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.73, the valuation of IBE1 can be described as correct.
IBE1's Price/Forward Earnings ratio is in line with the industry average.
IBE1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
IBE1's Enterprise Value to EBITDA is on the same level as the industry average.
IBE1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.26 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
IBE1's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IBE1 may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)1.64
EPS Next 2Y8.44%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
IBE1 has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.51, IBE1 is paying slightly less dividend.
IBE1's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 Years6
Div Non Decr Years6
5.3 Sustainability
20.78% of the earnings are spent on dividend by IBE1. This is a low number and 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 (4/25/2025, 7:00:00 PM)
15.575
+0.33 (+2.16%)
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 Cap100.31B
Analysts70.32
Price Target14.83 (-4.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.18
Dividend Growth(5Y)32.04%
DP20.78%
Div Incr Years6
Div Non Decr Years6
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)2.25%
PT rev (3m)3.92%
EPS NQ rev (1m)-40.65%
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.53%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.73 | ||
| P/S | 2.24 | ||
| P/FCF | 28.26 | ||
| P/OCF | 8.41 | ||
| P/B | 2.13 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)0.83
EY5.33%
EPS(NY)0.93
Fwd EY5.98%
FCF(TTM)0.55
FCFY3.54%
OCF(TTM)1.85
OCFY11.89%
SpS6.95
BVpS7.32
TBVpS4.17
PEG (NY)1.63
PEG (5Y)1.64
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
WACC6.41%
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 Y11.52%
EPS Next 2Y8.44%
EPS Next 3Y8.09%
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%