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Iberdrola
(BME:IBE)
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Rating:62Neutral
Price Target:
€22.50
▲(13.64% Upside)
Action:Reiterated
Date:03/04/26
The score is driven primarily by solid and improving profitability, but is held back by multi-year revenue declines, a sharp 2025 free-cash-flow deterioration, and a debt-heavy capital structure. Technicals are moderately constructive but not strong, and valuation is fair-to-slightly expensive with a modest (~3%) dividend yield.
Positive Factors
Improving profitability
Sustained margin expansion and rising net income indicate stronger operational efficiency and pricing power across Iberdrola’s businesses. Higher margins improve return on invested capital, support reinvestment in renewables and grid upgrades, and provide a buffer against commodity volatility over the medium term.
Negative Factors
Multi‑year revenue decline
Persistent top‑line contraction weakens growth momentum and may reflect structural or market pressures on sales volumes or merchant generation. Even with improving margins, declining revenue limits scale benefits, reduces organic funding for capex, and heightens dependence on external financing for expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Sustained margin expansion and rising net income indicate stronger operational efficiency and pricing power across Iberdrola’s businesses. Higher margins improve return on invested capital, support reinvestment in renewables and grid upgrades, and provide a buffer against commodity volatility over the medium term.
Read all positive factors
Iberdrola (IBE) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€137.99B
Dividend Yield2.92%
Average Volume (3M)9.15M
Price to Earnings (P/E)22.7
Beta (1Y)0.43
Revenue Growth-0.50%
EPS Growth19.02%
CountryES
Employees45,339
SectorGeneral
Sector StrengthN/A
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.93
Shares Outstanding6,575,000,000
10 Day Avg. Volume9,262,991
30 Day Avg. Volume9,152,873
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)2.46
Price to Sales (P/S)2.80
P/FCF Ratio103.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€19.90Price Target Upside0.51% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)1.01
Revenue Forecast (FY)€45.69B
Iberdrola Business Overview & Revenue Model
Company Description
Headquartered in Bilbao, Spain, Iberdrola, S.A. is a long-standing energy company, established in 1840. It is actively involved in the entire electricity value chain, encompassing power generation, transmission, distribution, and retail supply, bo...
How the Company Makes Money
Iberdrola makes money primarily through a combination of regulated network revenues and market-based electricity generation and supply activities, complemented by other energy-related services.
1) Regulated electricity networks (transmission and ...
Iberdrola Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.70B | 44.08B | 44.74B | 49.34B | 53.95B | 39.11B |
| Gross Profit | 13.88B | 24.05B | 23.88B | 23.30B | 20.20B | 17.06B |
| EBITDA | 17.76B | 15.39B | 14.56B | 13.92B | 12.77B | 11.80B |
| Net Income | 5.99B | 6.29B | 5.61B | 4.80B | 4.34B | 3.88B |
Balance Sheet | ||||||
| Total Assets | 165.03B | 160.76B | 158.29B | 150.03B | 154.67B | 141.75B |
| Cash, Cash Equivalents and Short-Term Investments | 7.02B | 6.35B | 4.57B | 5.47B | 7.47B | 8.40B |
| Total Debt | 60.44B | 59.79B | 57.73B | 61.65B | 50.42B | 44.27B |
| Total Liabilities | 102.06B | 97.34B | 97.24B | 89.74B | 96.55B | 85.63B |
| Stockholders Equity | 49.68B | 50.07B | 47.13B | 43.11B | 41.12B | 40.48B |
Cash Flow | ||||||
| Free Cash Flow | 1.70B | 1.19B | 3.72B | 4.41B | 3.66B | 1.19B |
| Operating Cash Flow | 3.12B | 8.80B | 11.93B | 12.13B | 10.44B | 8.11B |
| Investing Cash Flow | -3.29B | -11.77B | -8.40B | -9.07B | -10.15B | -9.49B |
| Financing Cash Flow | 1.73B | 2.80B | -2.27B | -2.35B | 151.00M | 1.87B |
Iberdrola Technical Analysis
Positive
19.80
Price Trends
20.05
Positive
19.75
Positive
18.69
Positive
Market Momentum
0.30
Positive
62.74
Neutral
23.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IBE, the sentiment is Positive. The current price of 19.8 is below the 20-day moving average (MA) of 21.01, below the 50-day MA of 20.05, and above the 200-day MA of 18.69, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 23.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:IBE.
Iberdrola Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €27.85B | 13.95 | 23.65% | 6.66% | 0.98% | 9.89% | |
69 Neutral | €40.68B | 17.87 | 27.50% | 4.32% | -1.55% | 9.15% | |
68 Neutral | €26.66B | 10.89 | 10.51% | 6.18% | -0.48% | 124.35% | |
62 Neutral | €137.99B | 22.74 | 11.79% | 2.92% | -0.50% | 19.02% | |
60 Neutral | €13.74B | 16.93 | 14.59% | 2.87% | 5.45% | 90.20% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | €2.46B | 13.54 | 19.85% | ― | 36.20% | 42.26% |
* General Sector Average
ES:IBE
Iberdrola
21.15
5.97
39.31%
ES:ANA
Acciona
249.60
96.42
62.95%
ES:ELE
Endesa SA
39.84
14.86
59.51%
ES:NTGY
Naturgy Energy Group, S.A.
28.74
3.18
12.43%
ES:REP
Repsol
23.86
11.59
94.39%
ES:SLR
Solaria Energia y Medio Ambiente
18.50
8.24
80.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.