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Iberdrola (ES:IBE)
BME:IBE

Iberdrola (IBE) AI Stock Analysis

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Iberdrola

(BME:IBE)

Rating:74Outperform
Price Target:
€18.00
▲(12.43%Upside)
Iberdrola's strong financial health and stable profitability are key strengths, supported by positive technical indicators. Fair valuation metrics slightly offset by potential risks in revenue trends and debt levels.
Positive Factors
Earnings
Management raises full-year guidance for a second time; expect double-digit growth instead of high single-digit growth previously.
Financial Performance
Strong performance was driven by record-high renewable production and gains from asset sales in Mexico.
Market Position
Iberdrola is well-placed to tap the rising power demand amidst the ongoing electrification push aided by Artificial Intelligence (AI) driven data centre growth in both Europe and US.
Negative Factors
Market Risks
Exposed to fluctuation in wholesale prices that could affect earnings.
Price Target
A price target reduction from €15 to €14.5 reflects higher bond yields and lower power prices, which offsets increased network capital expenditure.
Stock Valuation
The stock has outperformed the European Utilities sector by 17% over the previous year, but is now considered to be running out of runway for further near-term upside.

Iberdrola (IBE) vs. iShares MSCI Spain ETF (EWP)

Iberdrola Business Overview & Revenue Model

Company DescriptionIberdrola, 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 MoneyIberdrola makes money through a diversified revenue model centered around its core operations in electricity generation, transmission, and distribution. Key revenue streams include the sale of electricity generated from its renewable and conventional energy plants, fees from grid transmission and distribution services, and electricity retailing to residential, commercial, and industrial customers. The company also earns revenue through strategic partnerships and joint ventures in renewable energy projects globally. Iberdrola's focus on expanding its renewable energy capacity and infrastructure development plays a significant role in its financial performance, supported by favorable regulatory environments and government incentives for green energy initiatives.

Iberdrola Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
45.71B49.33B49.34B53.95B39.11B33.15B
Gross Profit
17.09B24.17B23.30B20.20B17.06B16.14B
EBIT
11.51B8.97B8.97B7.98B7.34B5.54B
EBITDA
17.58B14.97B13.92B12.77B11.80B10.12B
Net Income Common Stockholders
6.42B4.80B4.80B4.34B3.88B3.61B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.99B5.35B5.47B4.99B4.54B3.79B
Total Assets
154.67B158.29B150.03B154.67B141.75B122.52B
Total Debt
50.42B54.39B61.65B50.42B44.27B40.51B
Net Debt
45.81B50.31B58.63B45.81B40.23B37.08B
Total Liabilities
96.55B97.24B89.74B96.55B85.63B75.30B
Stockholders Equity
41.12B47.13B43.11B41.12B40.48B35.41B
Cash FlowFree Cash Flow
6.45B2.05B3.01B3.66B1.19B2.50B
Operating Cash Flow
10.74B11.93B12.13B10.44B8.11B8.35B
Investing Cash Flow
-144.00M-8.40B-9.07B-10.15B-9.49B-6.64B
Financing Cash Flow
-2.92B-2.27B-2.35B151.00M1.87B-71.00M

Iberdrola Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.01
Price Trends
50DMA
15.50
Positive
100DMA
14.56
Positive
200DMA
13.92
Positive
Market Momentum
MACD
0.16
Positive
RSI
57.54
Neutral
STOCH
37.10
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 16.01 is above the 20-day moving average (MA) of 15.89, above the 50-day MA of 15.50, and above the 200-day MA of 13.92, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 37.10 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESIBE
74
Outperform
€101.60B20.4610.55%2.95%-3.50%-20.24%
64
Neutral
$8.54B10.304.69%4.37%4.14%-13.04%
€3.67B10.12-11.89%8.34%
€28.64B13.1526.26%2.99%
€25.04B13.0020.32%4.36%
€9.69B26.369.44%4.18%
DE5BP
€6.42B17.886.11%2.02%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:IBE
Iberdrola
16.01
4.29
36.63%
GB:0EBQ
Enagas SA
14.03
0.58
4.31%
GB:0N9G
Endesa SA
27.07
9.31
52.42%
GB:0NPV
Naturgy Energy Group, S.A.
26.26
3.02
12.99%
GB:0RI5
Red Electrica Corporacion
18.08
1.93
11.95%
DE:5BP
Corporacion Acciona Energias Renovables SA
19.58
-1.00
-4.86%

Iberdrola Corporate Events

Iberdrola Initiates Share Buyback Program to Enhance Capital Structure
May 30, 2025

Iberdrola has announced the launch of a share buyback program, set to commence on June 2, 2025, and conclude by June 19, 2025, unless the maximum number of shares or monetary amount is reached earlier. This initiative, which involves acquiring up to 4,266,831 shares at a market price, is part of a broader strategy to implement a capital reduction approved by the General Shareholders’ Meeting, potentially impacting the company’s stock value and shareholder equity.

The most recent analyst rating on (ES:IBE) stock is a Buy with a EUR15.00 price target. To see the full list of analyst forecasts on Iberdrola stock, see the ES:IBE Stock Forecast page.

Iberdrola Approves Key Resolutions at General Shareholders’ Meeting
May 30, 2025

Iberdrola’s General Shareholders’ Meeting approved several key resolutions, including the individual and consolidated annual accounts for 2024, and modifications to the company’s governance and sustainability system. Additionally, the meeting sanctioned changes to the remuneration system, including the implementation of the ‘Iberdrola Flexible Remuneration’ program, which involves increases in share capital to offer shareholders new shares or dividends, reflecting a strategic move to enhance shareholder value and adapt to a decentralized corporate structure.

The most recent analyst rating on (ES:IBE) stock is a Buy with a EUR15.00 price target. To see the full list of analyst forecasts on Iberdrola stock, see the ES:IBE Stock Forecast page.

Iberdrola Sells UK Smart Meter Business for £899.7 Million
May 9, 2025

Iberdrola’s subsidiary, Scottish Power Retail Holdings Limited, has agreed to sell its smart meter rental business in the UK to Macquarie UK Holdings for approximately 899.7 million pounds. This transaction, pending approval by the British competition authority, is expected to close in the third quarter of 2025, and includes a long-term rental agreement to continue providing services to Scottish Power’s customers.

Iberdrola Issues €750 Million in Green Bonds to Bolster Renewable Energy Initiatives
May 7, 2025

Iberdrola has successfully issued 750 million euros in green bonds in the euro market, under its Euro Medium Term Notes program. This issuance, aligned with international green bond standards, underscores the company’s commitment to sustainable finance and strengthens its position in the renewable energy sector.

Iberdrola Announces 2025 Flexible Dividend Schedule
Apr 30, 2025

Iberdrola has announced the estimated schedule for its first edition of the optional dividend system, ‘Iberdrola Flexible Remuneration,’ for the 2025 fiscal year. This system allows shareholders to choose between receiving new shares, selling their allocation rights, or receiving cash dividends. The implementation of this system is pending approval at the General Shareholders’ Meeting, with key dates for execution spanning from May to July 2025. This initiative reflects Iberdrola’s commitment to providing flexible financial options to its shareholders, potentially enhancing shareholder value and engagement.

Iberdrola Releases Q1 2025 Financial Results
Apr 30, 2025

Iberdrola has released its consolidated financial results for the first quarter of 2025, prepared in accordance with International Financial Reporting Standards. The document emphasizes that it is not an offer or invitation to acquire shares and does not include profit forecasts. The release does not cover the financial results of Neoenergia S.A., Iberdrola’s subsidiary, which are available separately.

Iberdrola Sells Minority Stake in German Offshore Wind Farm
Apr 24, 2025

Iberdrola has sold a 49% stake in Windanker GmbH, the company developing the Windanker offshore wind farm in Germany, to Windanker Investco B.V., part of Kansai Electric Power Company. This transaction, completed after obtaining necessary regulatory approvals, reflects Iberdrola’s strategic move to optimize its asset portfolio and strengthen its financial position in the renewable energy sector.

Iberdrola Issues €400 Million Green Bonds to Strengthen Sustainable Financing
Apr 4, 2025

Iberdrola has announced the issuance of green bonds worth 400 million euros, maturing in 2030, linked to the company’s share value. The bonds, which carry a 20% premium over the reference share price, align with the Green Bond Principles of the International Capital Market Association, underscoring Iberdrola’s commitment to sustainable financing. This move is expected to bolster Iberdrola’s position in the green energy sector and provide financial backing for eligible green projects, although it carries potential risks related to market conditions and project impacts.

Iberdrola Announces 2025 General Shareholders’ Meeting
Mar 28, 2025

Iberdrola has announced the call for its 2025 General Shareholders’ Meeting, scheduled for May 30, 2025. The agenda and related documentation are available on the company’s website, ensuring shareholders have access to all necessary information for the meeting.

Iberdrola Announces 2025 General Shareholders’ Meeting with Strategic Proposals
Mar 25, 2025

Iberdrola has announced the call for its 2025 General Shareholders’ Meeting, scheduled for May 30, 2025. The agenda includes discussions on the company’s annual accounts, management reports, and non-financial information for 2024. Key proposals include amendments to the bylaws and regulations of the General Shareholders’ Meeting, approval of dividends, capital increases, and reductions, as well as the re-election of independent directors. These measures reflect Iberdrola’s strategic focus on maintaining robust governance and shareholder engagement, while also enhancing its financial flexibility through capital adjustments and dividend schemes.

Iberdrola Announces Share Buyback Program to Reduce Capital
Mar 25, 2025

Iberdrola, S.A. has announced a share buyback program, approved by its Board of Directors, aimed at reducing the company’s share capital. The program, which is contingent upon approval at the upcoming General Shareholders’ Meeting, will involve the repurchase of shares currently held in treasury, those acquired through the buyback, and shares obtained via certain derivatives. This move is expected to impact the company’s capital structure and could influence shareholder value.

Iberdrola Issues €400 Million Green Bonds to Boost Sustainable Finance
Mar 20, 2025

Iberdrola has announced the issuance of green bonds worth 400 million euros, linked to the company’s share value, with a maturity date in 2030 and a 1.5% annual coupon. This strategic move, guaranteed by Iberdrola, underscores the company’s commitment to sustainable finance and strengthens its position in the renewable energy market, potentially impacting stakeholders by enhancing financial stability and promoting green investments.

Iberdrola Secures UK Approval for Strategic Acquisition
Mar 20, 2025

Iberdrola has received unconditional authorization from the UK’s Competition and Markets Authority for its acquisition of an 88% stake in Electricity North West Limited. This move aligns with Iberdrola’s 2024-2026 Strategic Plan, enhancing its position in the UK energy transmission and distribution market.

Iberdrola Launches €375 Million Green Bond Linked to Share Value
Mar 20, 2025

Iberdrola has announced the launch of a green bond issuance valued at approximately 375 million euros, linked to the company’s share value. This initiative, which is guaranteed by Iberdrola, aims to enhance the company’s financial strategies while reinforcing its commitment to sustainability. The bonds, with a five-year maturity, will be traded on the Frankfurt Stock Exchange, and the issuance includes mechanisms to manage financial exposure through cash-settled call options. This move is expected to strengthen Iberdrola’s market position and provide stakeholders with a sustainable investment opportunity.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.