IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IBE1 - ES0144580Y14 - Common Stock
18.945 EUR
+0.18 (+0.93%)
We assign a fundamental rating of 4 out of 10 to IBE1. IBE1 was compared to 29 industry peers in the Electric Utilities industry. IBE1 has a medium profitability rating, but doesn't score so well on its financial health evaluation. IBE1 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- IBE1 had positive earnings in the past year.
- IBE1 had a positive operating cash flow in the past year.
- In the past 5 years IBE1 has always been profitable.
- Each year in the past 5 years IBE1 had a positive operating cash flow.
1.2 Ratios
- IBE1 has a Return On Assets of 3.20%. This is comparable to the rest of the industry: IBE1 outperforms 55.17% of its industry peers.
- IBE1 has a Return On Equity (11.05%) which is comparable to the rest of the industry.
- The Return On Invested Capital of IBE1 (4.86%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for IBE1 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
- IBE1 has a Profit Margin (11.24%) which is in line with its industry peers.
- IBE1's Profit Margin has improved in the last couple of years.
- The Operating Margin of IBE1 (18.59%) is comparable to the rest of the industry.
- IBE1's Operating Margin has improved in the last couple of years.
- The Gross Margin of IBE1 (47.23%) is worse than 62.07% of its industry peers.
- IBE1's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for IBE1 has been reduced compared to 1 year ago.
- 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 1.44. 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 of 1.44. This is in the better half of the industry: IBE1 outperforms 62.07% of its industry peers.
- 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's Debt to FCF ratio of 12.67 is fine compared to the rest of the industry. IBE1 outperforms 79.31% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that IBE1 is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.00, IBE1 is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.74
WACC6.56%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that IBE1 may have some problems paying its short term obligations.
- The Current ratio of IBE1 (0.75) is worse than 79.31% 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 has a worse Quick ratio (0.65) than 75.86% 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.
- Looking at the last year, IBE1 shows a small growth in Revenue. The Revenue has grown by 0.50% in the last year.
- The Revenue has been growing slightly by 4.19% on average over the past years.
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.
- Based on estimates for the next years, IBE1 will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
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
- A Price/Earnings ratio of 23.98 indicates a rather expensive valuation of IBE1.
- Based on the Price/Earnings ratio, IBE1 is valued a bit more expensive than 75.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, IBE1 is valued at the same level.
- IBE1 is valuated rather expensively with a Price/Forward Earnings ratio of 19.29.
- IBE1's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IBE1 is more expensive than 65.52% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. IBE1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IBE1.
- 72.41% of the companies in the same industry are more expensive than IBE1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.21 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)1.73
EPS Next 2Y8.46%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.91%, IBE1 has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.10, IBE1 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, IBE1 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- On average, the dividend of IBE1 grows each year by 33.47%, which is quite nice.
Dividend Growth(5Y)33.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 23.53% of the earnings are spent on dividend by IBE1. This is a low number and sustainable payout ratio.
- IBE1's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.53%
EPS Next 2Y8.46%
EPS Next 3Y7.92%
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 2 / 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 5 / 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 23.98 and the Price/Book (PB) ratio is 2.77.
How financially healthy is IBERDROLA SA?
The financial health rating of IBERDROLA SA (IBE1.DE) is 3 / 10.