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Iberdrola (ES:IBE)
BME:IBE
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Iberdrola (IBE) AI Stock Analysis

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ES:IBE

Iberdrola

(BME:IBE)

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Neutral 62 (OpenAI - 5.2)
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)

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
Profitability and net income trends are strong, with net margin improving materially into 2025. Offsetting this, revenue has declined for three consecutive years and free cash flow dropped sharply in 2025, while leverage remains meaningful (debt above equity), reducing financial flexibility.
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
54
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue44.70B44.08B44.74B49.34B53.95B39.11B
Gross Profit13.88B24.05B23.88B23.30B20.20B17.06B
EBITDA17.76B15.39B14.56B13.92B12.77B11.80B
Net Income5.99B6.29B5.61B4.80B4.34B3.88B
Balance Sheet
Total Assets165.03B160.76B158.29B150.03B154.67B141.75B
Cash, Cash Equivalents and Short-Term Investments7.02B6.35B4.57B5.47B7.47B8.40B
Total Debt60.44B59.79B57.73B61.65B50.42B44.27B
Total Liabilities102.06B97.34B97.24B89.74B96.55B85.63B
Stockholders Equity49.68B50.07B47.13B43.11B41.12B40.48B
Cash Flow
Free Cash Flow1.70B1.19B3.72B4.41B3.66B1.19B
Operating Cash Flow3.12B8.80B11.93B12.13B10.44B8.11B
Investing Cash Flow-3.29B-11.77B-8.40B-9.07B-10.15B-9.49B
Financing Cash Flow1.73B2.80B-2.27B-2.35B151.00M1.87B

Iberdrola Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.80
Price Trends
50DMA
20.05
Positive
100DMA
19.75
Positive
200DMA
18.69
Positive
Market Momentum
MACD
0.30
Positive
RSI
62.74
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€27.85B13.9523.65%6.66%0.98%9.89%
69
Neutral
€40.68B17.8727.50%4.32%-1.55%9.15%
68
Neutral
€26.66B10.8910.51%6.18%-0.48%124.35%
62
Neutral
€137.99B22.7411.79%2.92%-0.50%19.02%
60
Neutral
€13.74B16.9314.59%2.87%5.45%90.20%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
€2.46B13.5419.85%36.20%42.26%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: Mar 04, 2026