IBERDROLA SA (IBE1.DE) Stock Fundamental Analysis
FRA:IBE1 - Deutsche Boerse Ag - ES0144580Y14 - Common Stock - Currency: EUR
IBE1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Electric Utilities industry. While IBE1 has a great profitability rating, there are quite some concerns on its financial health. IBE1 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years IBE1 has been profitable.
IBE1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IBE1 has a Return On Assets (4.17%) which is comparable to the rest of the industry.
IBE1 has a Return On Equity of 13.75%. This is comparable to the rest of the industry: IBE1 outperforms 50.00% of its industry peers.
With a Return On Invested Capital value of 6.94%, IBE1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IBE1 is below the industry average of 8.70%.
The 3 year average ROIC (5.14%) for IBE1 is below the current ROIC(6.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 13.75% | ||
| ROIC | 6.94% |
ROA(3y)2.92%
ROA(5y)2.9%
ROE(3y)10.43%
ROE(5y)10.11%
ROIC(3y)5.14%
ROIC(5y)4.79%
1.3 Margins
With an excellent Profit Margin value of 14.04%, IBE1 belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
IBE1's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.89%, IBE1 belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
IBE1's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 44.52%, IBE1 perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Gross Margin of IBE1 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.89% | ||
| PM (TTM) | 14.04% | ||
| GM | 44.52% |
OM growth 3Y2.74%
OM growth 5Y3.19%
PM growth 3Y-3.68%
PM growth 5Y2.53%
GM growth 3Y-1%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IBE1 is still creating some value.
IBE1 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IBE1 has less shares outstanding
IBE1 has a worse debt/assets ratio than last year.
2.2 Solvency
IBE1 has an Altman-Z score of 1.39. This is a bad value and indicates that IBE1 is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.39, IBE1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
IBE1 has a debt to FCF ratio of 18.49. This is a negative value and a sign of low solvency as IBE1 would need 18.49 years to pay back of all of its debts.
IBE1 has a better Debt to FCF ratio (18.49) than 75.00% of its industry peers.
IBE1 has a Debt/Equity ratio of 0.81. This is a neutral value indicating IBE1 is somewhat dependend on debt financing.
IBE1 has a better Debt to Equity ratio (0.81) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 18.49 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.07
WACC6.49%
2.3 Liquidity
IBE1 has a Current Ratio of 0.76. 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 0.76, IBE1 is doing worse than 75.00% of the companies in the same industry.
IBE1 has a Quick Ratio of 0.76. 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
IBE1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.22%, which is quite impressive.
The Earnings Per Share has been growing by 11.64% on average over the past years. This is quite good.
Looking at the last year, IBE1 shows a very negative growth in Revenue. The Revenue has decreased by -14.99% in the last year.
IBE1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.
EPS 1Y (TTM)38.22%
EPS 3Y13.85%
EPS 5Y11.64%
EPS Q2Q%31.25%
Revenue 1Y (TTM)-14.99%
Revenue growth 3Y14.18%
Revenue growth 5Y7.06%
Sales Q2Q%-4.12%
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 6.91% on average per year.
The Revenue is expected to grow by 0.96% on average over the next years.
EPS Next Y21.21%
EPS Next 2Y12.73%
EPS Next 3Y10.24%
EPS Next 5Y6.91%
Revenue Next Year-11.32%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.37%
Revenue Next 5Y0.96%
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
Based on the Price/Earnings ratio of 13.72, the valuation of IBE1 can be described as correct.
IBE1's Price/Earnings ratio is a bit cheaper when compared to the industry. IBE1 is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, IBE1 is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of IBE1 can be described as correct.
IBE1's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IBE1 is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, IBE1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
IBE1's Enterprise Value to EBITDA is on the same level as the industry average.
68.75% 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 | 31.39 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IBE1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)1.18
EPS Next 2Y12.73%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
IBE1 has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.71, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
On average, the dividend of IBE1 grows each year by 50.09%, which is quite nice.
Dividend Growth(5Y)50.09%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
IBE1 pays out 17.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of IBE1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.78%
EPS Next 2Y12.73%
EPS Next 3Y10.24%
FRA:IBE1 (3/7/2025, 7:00:00 PM)
13.58
+0.23 (+1.76%)
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 Cap87.46B
Analysts70.97
Price Target14.5 (6.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend0.15
Dividend Growth(5Y)50.09%
DP17.78%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.66%
Min EPS beat(2)19.45%
Max EPS beat(2)75.88%
EPS beat(4)4
Avg EPS beat(4)28.09%
Min EPS beat(4)8.24%
Max EPS beat(4)75.88%
EPS beat(8)7
Avg EPS beat(8)21.29%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-13.61%
Min Revenue beat(4)-37.59%
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)1.04%
PT rev (3m)2.26%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-4.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 15.1 | ||
| P/S | 1.91 | ||
| P/FCF | 31.39 | ||
| P/OCF | 7.23 | ||
| P/B | 1.87 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)0.99
EY7.29%
EPS(NY)0.9
Fwd EY6.62%
FCF(TTM)0.43
FCFY3.19%
OCF(TTM)1.88
OCFY13.82%
SpS7.1
BVpS7.24
TBVpS4.1
PEG (NY)0.65
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 13.75% | ||
| ROCE | 8.75% | ||
| ROIC | 6.94% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 8.88% | ||
| OM | 23.89% | ||
| PM (TTM) | 14.04% | ||
| GM | 44.52% | ||
| FCFM | 6.1% |
ROA(3y)2.92%
ROA(5y)2.9%
ROE(3y)10.43%
ROE(5y)10.11%
ROIC(3y)5.14%
ROIC(5y)4.79%
ROICexc(3y)5.39%
ROICexc(5y)5%
ROICexgc(3y)6.48%
ROICexgc(5y)6.06%
ROCE(3y)6.68%
ROCE(5y)6.22%
ROICexcg growth 3Y10.97%
ROICexcg growth 5Y3.49%
ROICexc growth 3Y11.36%
ROICexc growth 5Y4.97%
OM growth 3Y2.74%
OM growth 5Y3.19%
PM growth 3Y-3.68%
PM growth 5Y2.53%
GM growth 3Y-1%
GM growth 5Y1.52%
F-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 18.49 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 158.57% | ||
| Cap/Sales | 20.35% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 72.01% | ||
| Profit Quality | 43.42% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.39 |
F-Score7
WACC6.49%
ROIC/WACC1.07
Cap/Depr(3y)131.72%
Cap/Depr(5y)128.84%
Cap/Sales(3y)15.41%
Cap/Sales(5y)15.84%
Profit Quality(3y)67.8%
Profit Quality(5y)62.34%
High Growth Momentum
Growth
EPS 1Y (TTM)38.22%
EPS 3Y13.85%
EPS 5Y11.64%
EPS Q2Q%31.25%
EPS Next Y21.21%
EPS Next 2Y12.73%
EPS Next 3Y10.24%
EPS Next 5Y6.91%
Revenue 1Y (TTM)-14.99%
Revenue growth 3Y14.18%
Revenue growth 5Y7.06%
Sales Q2Q%-4.12%
Revenue Next Year-11.32%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.37%
Revenue Next 5Y0.96%
EBIT growth 1Y21.71%
EBIT growth 3Y17.31%
EBIT growth 5Y10.48%
EBIT Next Year74.23%
EBIT Next 3Y23.32%
EBIT Next 5Y14.98%
FCF growth 1Y30.37%
FCF growth 3Y19.44%
FCF growth 5Y28.06%
OCF growth 1Y33.59%
OCF growth 3Y13.27%
OCF growth 5Y9.84%