Iberdrola (IBE) AI Stock Analysis

• Market Cap: €107.13B
• Dividend Yield: 3.28%
• Average Volume (3M): 10.32M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.52
• Revenue Growth: -1.89%
• EPS Growth: -21.48%
• Country: ES
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 84
• Industry: Diversified Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 6,681,227,500
• 10 Day Avg. Volume: 7,204,740
• 30 Day Avg. Volume: 10,318,156
• 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: €15.46
• Price Target Upside: -4.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: €17.00 ▲(4.81% Upside)

Iberdrola's strong financial performance and fair valuation are positive indicators, but mixed technical signals and potential risks from declining revenue trends and high debt levels contribute to a cautious overall outlook.

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 Sentiment

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

Negative Factors

Analyst Recommendation

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.

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%, but is now considered to be running out of runway for further near-term upside.

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 shows strong financial health with stable profitability margins and effective margin management. However, slight revenue declines and high debt levels are potential risks that could impact financial stability if not monitored.

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	55.41B	44.74B	49.34B	53.95B	39.11B	33.15B
Gross Profit	24.14B	23.88B	23.30B	20.20B	17.06B	16.14B
EBITDA	20.18B	15.46B	13.92B	12.77B	11.80B	10.12B
Net Income	6.19B	5.61B	4.80B	4.34B	3.88B	3.61B
Balance Sheet
Total Assets	162.19B	158.29B	150.03B	154.67B	141.75B	122.52B
Cash, Cash Equivalents and Short-Term Investments	3.45B	4.57B	5.47B	4.99B	4.54B	3.79B
Total Debt	60.08B	57.73B	61.65B	50.42B	44.27B	40.51B
Total Liabilities	101.49B	97.24B	89.74B	96.55B	85.63B	75.30B
Stockholders Equity	46.96B	47.13B	43.11B	41.12B	40.48B	35.41B
Cash Flow
Free Cash Flow	1.25B	3.72B	3.01B	3.66B	1.19B	2.50B
Operating Cash Flow	5.88B	11.93B	12.13B	10.44B	8.11B	8.35B
Investing Cash Flow	-5.92B	-8.40B	-9.07B	-10.15B	-9.49B	-6.64B
Financing Cash Flow	-5.61B	-2.27B	-2.35B	151.00M	1.87B	-71.00M

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 16.22 is above the 20-day moving average (MA) of 15.52, above the 50-day MA of 15.72, and above the 200-day MA of 14.28, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 68.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.98 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
IBE	67 Neutral	€107.13B	20.03	10.92%	3.28%	-1.89%	-21.48%
Sector *	62 Neutral	C$8.27B	3.54	-16.63%	4.58%	0.42%	-203.16%
0EBQ	―	€3.46B	25.53	5.64%	―	―	―
0N9G	―	€27.18B	12.80	26.86%	―	―	―
0NPV	―	€23.53B	12.89	22.84%	―	―	―
0RI5	―	€8.87B	24.12	10.14%	―	―	―
5BP	―	€7.56B	10.16	13.06%	―	―	―

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.