Iberdrola (IBE) AI Stock Analysis

• Market Cap: €112.71B
• Dividend Yield: 3.11%
• Average Volume (3M): 9.15M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.51
• Revenue Growth: -1.89%
• EPS Growth: -21.48%
• Country: ES
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 6,681,227,500
• 10 Day Avg. Volume: 9,262,991
• 30 Day Avg. Volume: 9,152,873
• PEG Ratio: 0.95
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 23.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €16.98
• Price Target Upside: -0.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: €17.00 ▼(-0.41% Downside)

Iberdrola's overall stock score is driven primarily by its strong financial performance, characterized by stable profitability and a robust balance sheet. Technical analysis indicates a neutral trend with some caution due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued with a decent dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Renewable Energy Leadership

Iberdrola's leadership in wind power positions it well in the growing renewable energy sector, benefiting from global sustainability trends and regulatory support.

Strong Profitability Margins

High profitability margins indicate efficient operations and pricing power, supporting long-term financial health and the ability to invest in growth opportunities.

Stable Cash Flow Generation

Consistent cash flow generation ensures liquidity and financial flexibility, enabling Iberdrola to fund operations and strategic investments without relying heavily on external financing.

Negative Factors

High Debt Levels

Elevated debt levels may limit financial flexibility and increase vulnerability to interest rate hikes or economic downturns, potentially impacting long-term stability.

Declining Revenue Trends

A decline in revenue could indicate challenges in market demand or competition, which may affect future growth prospects if not addressed.

Potential Pressure on Liquidity

Reduced free cash flow may constrain Iberdrola's ability to fund new projects or manage unexpected expenses, impacting its long-term growth and operational resilience.

Iberdrola Business Overview & Revenue Model

Company Description

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain and internationally. It generates and markets electrical power using renewable sources, such as onshore and offshore wind, hydro, solar photovoltaic, combined cycle gas, nuclear, and biomass, as well as through installation of batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; development of green hydrogen projects; and distribution and sale of gas. It has a total installed capacity of 58,320 MW, including 38,138 MW of renewable installed capacity; and operates 1.2 million kilometers of electricity transmission and distribution lines, as well as serves 36.11 million consumers. In addition, the company offers energy storage, heat pumps, self-consumption, and electric vehicles for residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is headquartered in Bilbao, Spain.

How the Company Makes Money

Iberdrola generates revenue primarily through its electricity generation and distribution businesses. The company's key revenue streams include the sale of electricity generated from renewable sources like wind and hydroelectric power, conventional energy generation, and the distribution of electricity to end-users. Additionally, Iberdrola earns income from gas sales and energy management services. The company benefits from regulatory frameworks that support renewable energy, as well as long-term contracts with customers and governments. Significant partnerships with other energy firms and investments in infrastructure and technology further enhance its earnings potential.

Iberdrola Financial Statement Overview

Summary

Iberdrola exhibits strong financial health with stable and profitable operations. Key strengths include effective margin management and a robust balance sheet. However, potential risks include slightly declining revenue trends and high debt levels, which need to be monitored to ensure continued financial stability.

Income Statement

Iberdrola has demonstrated stable revenue performance with a slight decrease in total revenue from the previous year, but strong profitability margins. The gross profit margin is healthy at 49%, and the net profit margin remains stable at approximately 9.7%. The EBIT and EBITDA margins are robust, indicating efficient operations. However, there is a slight decline in revenue from prior years, which could be a concern if it continues.

Balance Sheet

The company's balance sheet is relatively strong with a moderate debt-to-equity ratio of 1.15, reflecting a balanced use of leverage. The equity ratio of 29.8% indicates a stable equity base. Return on equity is solid at 10.2%, showing effective use of shareholder funds. However, high total debt levels could pose risks if market conditions change.

Cash Flow

Cash flow generation is stable, with operating cash flow covering net income effectively. The free cash flow to net income ratio is favorable, indicating good cash conversion from operations. However, there has been a decline in free cash flow compared to the previous year, highlighting potential pressure on liquidity if investment needs continue to rise.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.33B	44.74B	49.34B	53.95B	39.11B	33.15B
Gross Profit	27.03B	23.88B	23.30B	20.20B	17.06B	16.14B
EBITDA	20.55B	15.46B	13.92B	12.77B	11.80B	10.12B
Net Income	5.04B	5.61B	4.80B	4.34B	3.88B	3.61B
Balance Sheet
Total Assets	157.57B	158.29B	150.03B	154.67B	141.75B	122.52B
Cash, Cash Equivalents and Short-Term Investments	3.34B	4.57B	5.47B	7.47B	8.40B	4.61B
Total Debt	56.38B	57.73B	61.65B	50.42B	44.27B	40.51B
Total Liabilities	98.15B	97.24B	89.74B	96.55B	85.63B	75.30B
Stockholders Equity	53.88B	47.13B	43.11B	41.12B	40.48B	35.41B
Cash Flow
Free Cash Flow	2.48B	3.72B	4.41B	3.66B	1.19B	2.50B
Operating Cash Flow	6.62B	11.93B	12.13B	10.44B	8.11B	8.35B
Investing Cash Flow	-6.01B	-8.40B	-9.07B	-10.15B	-9.49B	-6.64B
Financing Cash Flow	-2.21B	-2.27B	-2.35B	151.00M	1.87B	-71.00M

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 17.07 is above the 20-day moving average (MA) of 16.33, above the 50-day MA of 16.10, and above the 200-day MA of 15.03, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 81.06 is Negative, neither overbought nor oversold. The STOCH value of 93.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:IBE.

Iberdrola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANE	80 Outperform	€7.94B	10.62	13.06%	1.80%	2.05%	307.60%
NTGY	70 Outperform	€23.25B	12.74	22.84%	6.38%	2.66%	1.26%
ELE	68 Neutral	€31.00B	14.54	26.86%	4.48%	-4.53%	221.40%
IBE	67 Neutral	€112.71B	20.93	10.92%	3.11%	-1.89%	-21.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RED	59 Neutral	€9.08B	24.69	10.14%	3.85%	-23.15%	-39.13%
ENG	55 Neutral	€3.63B	26.82	5.64%	7.13%	2.37%	―