IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IBE1 - ES0144580Y14 - Common Stock
18.185 EUR
-0.18 (-0.95%)
Taking everything into account, IBE1 scores 4 out of 10 in our fundamental rating. IBE1 was compared to 26 industry peers in the Electric Utilities industry. While IBE1 is still in line with the averages on profitability rating, there are concerns on its financial health. IBE1 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year IBE1 was profitable.
- IBE1 had a positive operating cash flow in the past year.
- Each year in the past 5 years IBE1 has been profitable.
- In the past 5 years IBE1 always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.20%, IBE1 perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- With a Return On Equity value of 11.05%, IBE1 perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- IBE1 has a Return On Invested Capital (4.86%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for IBE1 is in line with the industry average of 6.56%.
| 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
- IBE1 has a Profit Margin (11.24%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of IBE1 has grown nicely.
- Looking at the Operating Margin, with a value of 18.59%, IBE1 is in line with its industry, outperforming 53.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of IBE1 has grown nicely.
- IBE1 has a Gross Margin (47.23%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of IBE1 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 IBE1 is destroying value.
- Compared to 1 year ago, IBE1 has less shares outstanding
- IBE1 has less shares outstanding than it did 5 years ago.
- IBE1 has a worse debt/assets ratio than last year.
2.2 Solvency
- IBE1 has an Altman-Z score of 1.42. 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 (1.42) which is comparable to the rest of the industry.
- The Debt to FCF ratio of IBE1 is 12.67, which is on the high side as it means it would take IBE1, 12.67 years of fcf income to pay off all of its debts.
- IBE1 has a better Debt to FCF ratio (12.67) than 76.92% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that IBE1 is somewhat dependend on debt financing.
- IBE1 has a Debt to Equity ratio of 1.00. This is in the better half of the industry: IBE1 outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.75
WACC6.52%
2.3 Liquidity
- IBE1 has a Current Ratio of 0.75. 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 Current ratio (0.75) than 76.92% of its industry peers.
- IBE1 has a Quick Ratio of 0.75. 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's Quick ratio of 0.65 is on the low side compared to the rest of the industry. IBE1 is outperformed by 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- IBE1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.58%.
- IBE1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.83% yearly.
- The Revenue has been growing slightly by 0.50% in the past year.
- IBE1 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
- Based on estimates for the next years, IBE1 will show a small growth in Earnings Per Share. The EPS will grow by 7.61% on average per year.
- The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y15.93%
EPS Next 2Y8.99%
EPS Next 3Y8.25%
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
- A Price/Earnings ratio of 23.02 indicates a rather expensive valuation of IBE1.
- Based on the Price/Earnings ratio, IBE1 is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IBE1 is valued at the same level.
- A Price/Forward Earnings ratio of 18.34 indicates a rather expensive valuation of IBE1.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IBE1 indicates a slightly more expensive valuation: IBE1 is more expensive than 61.54% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. IBE1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBE1 indicates a somewhat cheap valuation: IBE1 is cheaper than 61.54% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, IBE1 is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.08 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- IBE1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)1.66
EPS Next 2Y8.99%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
- No dividends for IBE1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
IBERDROLA SA / IBE1.DE FAQ
What is the ChartMill fundamental rating of IBERDROLA SA (IBE1.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to IBE1.DE.
Can you provide the valuation status for IBERDROLA SA?
ChartMill assigns a valuation rating of 3 / 10 to IBERDROLA SA (IBE1.DE). This can be considered as Overvalued.
What is the profitability of IBE1 stock?
IBERDROLA SA (IBE1.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of IBERDROLA SA (IBE1.DE) stock?
The Price/Earnings (PE) ratio for IBERDROLA SA (IBE1.DE) is 23.02 and the Price/Book (PB) ratio is 2.66.
How financially healthy is IBERDROLA SA?
The financial health rating of IBERDROLA SA (IBE1.DE) is 3 / 10.