IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:IBE1 • ES0144580Y14
19.05 EUR
+0.21 (+1.14%)
Last: Jan 30, 2026, 07:00 PM
Overall IBE1 gets a fundamental rating of 4 out of 10. We evaluated IBE1 against 29 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 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.
- 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
- Looking at the Return On Assets, with a value of 3.20%, IBE1 is in line with its industry, outperforming 55.17% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 11.05%, IBE1 is in line with its industry, outperforming 51.72% of the companies in the same industry.
- IBE1's Return On Invested Capital of 4.86% is in line compared to the rest of the industry. IBE1 outperforms 55.17% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IBE1 is in line with the industry average of 6.33%.
| 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 of 11.24%. This is comparable to the rest of the industry: IBE1 outperforms 48.28% of its industry peers.
- IBE1's Profit Margin has improved in the last couple of years.
- IBE1's Operating Margin of 18.59% is in line compared to the rest of the industry. IBE1 outperforms 48.28% of its industry peers.
- In the last couple of years the Operating Margin of IBE1 has grown nicely.
- IBE1's Gross Margin of 47.23% is on the low side compared to the rest of the industry. IBE1 is outperformed by 65.52% 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.
- Compared to 5 years ago, IBE1 has less shares outstanding
- The debt/assets ratio for IBE1 is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.44, we must say that IBE1 is in the distress zone and 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.
- IBE1 has a debt to FCF ratio of 12.67. This is a negative value and a sign of low solvency as IBE1 would need 12.67 years to pay back of all of its debts.
- The Debt to FCF ratio of IBE1 (12.67) is better than 79.31% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that IBE1 is somewhat dependend on debt financing.
- IBE1 has a better Debt to Equity ratio (1.00) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.74
WACC6.57%
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 82.76% of its industry peers.
- A Quick Ratio of 0.65 indicates that IBE1 may have some problems paying its short term obligations.
- With a Quick ratio value of 0.65, IBE1 is not doing good in the industry: 75.86% 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 IBE1 have decreased strongly by -19.58% in the last year.
- IBE1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.83% yearly.
- IBE1 shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
- 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)-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
- 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 24.11, which indicates a rather expensive current valuation of IBE1.
- 79.31% of the companies in the same industry are cheaper than IBE1, based on the Price/Earnings ratio.
- IBE1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.40, IBE1 is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, IBE1 is valued a bit more expensive than 68.97% of the companies in the same industry.
- IBE1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBE1 is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, IBE1 is valued a bit cheaper than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.37 | ||
| EV/EBITDA | 11.39 |
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)1.68
PEG (5Y)1.74
EPS Next 2Y8.46%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- IBE1 has a Yearly Dividend Yield of 2.84%.
- Compared to an average industry Dividend Yield of 3.06, IBE1 has a dividend in line with its industry peers.
- IBE1's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- The dividend of IBE1 is nicely growing with an annual growth rate of 33.47%!
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.
- The dividend of IBE1 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 / 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 24.11 and the Price/Book (PB) ratio is 2.79.
How financially healthy is IBERDROLA SA?
The financial health rating of IBERDROLA SA (IBE1.DE) is 3 / 10.