Iberdrola (IBE) AI Stock Analysis

• Market Cap: €97.94B
• Dividend Yield: 3.51%
• Average Volume (3M): 8.99M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.57
• Revenue Growth: -1.89%
• EPS Growth: -21.48%
• Country: ES
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 75
• Industry: Diversified Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 6,240,000,000
• 10 Day Avg. Volume: 8,966,002
• 30 Day Avg. Volume: 8,994,395
• PEG Ratio: -1.63
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.47
• 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: €14.82
• Price Target Upside: -2.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: €17.50 ▲(15.51%Upside)

Iberdrola's overall score is primarily driven by its strong financial performance and attractive valuation. The company's robust margins and solid dividend yield are key strengths. However, technical analysis suggests neutral sentiment, and high debt levels require monitoring.

Positive Factors

Earnings Mix

Iberdrola is recognized for its quality earnings mix, with a significant portion in high-growth Electricity networks and Renewables businesses.

Growth Opportunity

Iberdrola's capital raise highlights the secular growth opportunity for the company.

Investor Confidence

Iberdrola is expected to continue being a core holding for many investors amidst an uncertain macroeconomic environment.

Negative Factors

Price Target Reduction

A price target reduction from €15 to €14.5 reflects higher bond yields and lower power prices, which offsets increased network capital expenditure.

Stock Performance

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.

Valuation Concerns

The analyst's recommendation for Iberdrola has been downgraded to Equal-weight due to strong outperformance and premium valuation compared to the broader Utilities sector.

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 makes money through several key revenue streams, primarily driven by its activities in electricity generation, distribution, and retail. The company generates revenue by producing electricity from a diverse mix of energy sources, including renewable energy (wind, solar, and hydroelectric), nuclear, and thermal power plants. A significant portion of its income comes from selling electricity to residential, commercial, and industrial customers. Additionally, Iberdrola invests in grid infrastructure and smart grid technologies, which enhance the efficiency and reliability of power distribution, and generate revenue through regulated tariffs. The company also engages in energy trading and has formed strategic partnerships and joint ventures to expand its renewable energy portfolio globally. Iberdrola benefits from government incentives and subsidies in various countries for renewable energy projects, which further contribute to its earnings.

Iberdrola Financial Statement Overview

Summary

Iberdrola shows strong financial health with stable profitability and effective margin management. However, slight revenue declines and high debt levels pose potential risks.

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	45.71B	44.74B	49.34B	53.95B	39.11B	33.15B
Gross Profit	17.09B	19.57B	23.30B	20.20B	17.06B	16.14B
EBITDA	17.58B	14.97B	13.92B	12.77B	11.80B	10.12B
Net Income	6.42B	5.61B	4.80B	4.34B	3.88B	3.61B
Balance Sheet
Total Assets	153.79B	158.29B	150.03B	154.67B	141.75B	122.52B
Cash, Cash Equivalents and Short-Term Investments	7.02B	4.57B	5.47B	4.99B	4.54B	3.79B
Total Debt	48.21B	57.73B	61.65B	50.42B	44.27B	40.51B
Total Liabilities	89.99B	97.24B	89.74B	96.55B	85.63B	75.30B
Stockholders Equity	46.66B	47.13B	43.11B	41.12B	40.48B	35.41B
Cash Flow
Free Cash Flow	6.45B	2.05B	3.01B	3.66B	1.19B	2.50B
Operating Cash Flow	10.74B	11.93B	12.13B	10.44B	8.11B	8.35B
Investing Cash Flow	-144.00M	-8.40B	-9.07B	-10.15B	-9.49B	-6.64B
Financing Cash Flow	-2.92B	-2.27B	-2.35B	151.00M	1.87B	-71.00M

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IBE, the sentiment is Negative. The current price of 15.15 is below the 20-day moving average (MA) of 15.75, below the 50-day MA of 15.78, and above the 200-day MA of 14.12, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 66.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:IBE.

Iberdrola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBE	72 Outperform	€97.94B	20.36	10.92%	3.51%	-1.89%	-21.48%
Sector *	67 Neutral	$16.92B	17.11	4.47%	3.88%	4.75%	6.28%
0EBQ	―	€3.55B	40.32	3.70%	7.03%	―	―
0N9G	―	€27.95B	12.75	26.26%	6.94%	―	―
0NPV	―	€26.21B	13.07	20.32%	5.84%	―	―
0RI5	―	€9.40B	25.78	9.44%	7.11%	―	―
5BP	―	€8.14B	23.46	6.11%	1.71%	―	―

Iberdrola Corporate Events

Iberdrola Announces Key Leadership Changes

Iberdrola has announced significant changes in its Board of Directors, appointing Pedro Azagra Blázquez as the new CEO and a member of the Executive Delegated Committee. Additionally, Nicola Mary Brewer has been appointed as the chair of the Sustainable Development Committee, highlighting the company’s ongoing commitment to sustainability and strategic leadership restructuring.

The most recent analyst rating on (ES:IBE) stock is a Hold with a EUR12.00 price target. To see the full list of analyst forecasts on Iberdrola stock, see the ES:IBE Stock Forecast page.

Iberdrola Launches Flexible Dividend System for 2025

Iberdrola has announced the launch of its first edition of the optional dividend system, ‘Iberdrola Flexible Remuneration,’ for the fiscal year 2025. This initiative allows shareholders to choose between receiving new fully paid-up shares, selling their free allocation rights, or receiving cash as a complementary dividend. This move is expected to provide flexibility to shareholders and potentially enhance shareholder value.

The most recent analyst rating on (ES:IBE) stock is a Hold with a EUR12.00 price target. To see the full list of analyst forecasts on Iberdrola stock, see the ES:IBE Stock Forecast page.

Iberdrola Concludes Share Buyback Program and Plans Capital Reduction

Iberdrola has completed its share buyback program, acquiring a total of 4,266,831 shares, representing 0.066% of its share capital. The company plans to execute a capital reduction by amortizing 200,561,000 shares, which will reduce its share capital by approximately 3.114%, aligning with its strategic financial management goals.

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 Initiates Share Buyback Program to Enhance Capital Structure

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

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

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

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

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

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

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.