Iberpapel Gestion (IBG) AI Stock Analysis

• Market Cap: €215.68M
• Dividend Yield: 4.24%
• Average Volume (3M): 7.64K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.18
• Revenue Growth: -8.26%
• EPS Growth: -53.40%
• Country: ES
• Employees: 287
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.07
• Shares Outstanding: 10,964,445
• 10 Day Avg. Volume: 7,446
• 30 Day Avg. Volume: 7,637
• PEG Ratio: -0.48
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 25.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): €232.00M

• Rating: 52 Neutral
• Price Target: €20.00 ▼(-2.91% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by sharply weaker 2025 profitability (negative operating margin) and weak technical momentum (trading below key moving averages with low RSI). Offsetting these risks are a very conservative balance sheet with minimal leverage and an attractive dividend yield, though the high P/E limits valuation support.

Positive Factors

Conservative Balance Sheet

Extremely low leverage (debt-to-equity 0.04 in 2025) and a large equity base provide durable financial resilience. This conservatism cushions operating volatility, preserves access to financing, and supports capital returns or strategic investments even if cyclicality in pulp and paper persists.

Positive Free Cash Flow

Sustained positive operating cash flow (€18.9M) and free cash flow (€8.5M) in 2025 show the business can internally fund operations and dividends. While historical volatility exists, three consecutive years of positive FCF (2023–2025) improve the company's ability to finance capex and maintain shareholder returns.

Sustainable, Diversified Revenue Base

A diversified customer base (publishers, printers, distributors) and long-term contracts reduce revenue volatility. Commitment to sustainability can support premium pricing and regulatory alignment, strengthening long-run demand from eco-conscious customers and institutional buyers.

Negative Factors

Weakening Profitability

Operating profit turned negative in 2025 with EBIT margin -2.5% despite a still-positive gross margin, indicating cost pressure or pricing erosion. Persistent negative operating margins would undermine cash generation, strain margins, and force either cost restructuring or price increases that may hurt volume.

Falling Return on Equity

ROE has collapsed to 1.8% in 2025 from double-digit levels in 2023, signaling deteriorating capital efficiency. Low returns on a strong equity base suggest the company is not generating sufficient profit from invested capital, limiting reinvestment capacity and putting long‑term dividend sustainability at risk.

Negative Revenue Trend

A roughly -9% revenue trend indicates shrinking top-line scale, reducing operating leverage and making fixed costs harder to absorb. Continued revenue declines would pressure margins, reduce bargaining power with suppliers, and necessitate strategic product or market shifts to restore growth.

Iberpapel Gestion Business Overview & Revenue Model

Company Description

Iberpapel Gestión, S.A., together with its subsidiaries, manufactures, sells, and exports writing and printing paper in Spain, rest of European Union, Africa, South America, and internationally. The company operates through Paper, Gas Power Generation, and Forestry Activity and Other segments. It offers paper for bags and packaging, as well as label face products. The company also generates 10 Mwh of electricity through biomass; and 50 Mwh of electricity through gas cogeneration. In addition, it owns and manages 25,788 hectares of land in Spain, Argentina, and Uruguay. Further, the company is involved in the reforestation and forestry operations; and sale of timber. Iberpapel Gestión, S.A. was founded in 1935 and is headquartered in San Sebastián, Spain.

How the Company Makes Money

Iberpapel Gestion generates revenue primarily through the sale of its paper products, which include a wide range of uncoated fine papers and specialty papers aimed at various market segments. The company's revenue model is supported by direct sales to customers, long-term contracts with distributors, and partnerships with industry players that enhance its market reach. Key revenue streams include bulk sales to commercial printers and publishers, as well as customized paper solutions for specific customer needs. Additionally, Iberpapel's commitment to sustainability and eco-friendly practices may attract premium pricing, contributing positively to its profit margins.

Iberpapel Gestion Financial Statement Overview

Summary

Financials are mixed: the balance sheet is very strong with very low leverage (debt-to-equity 0.04), but 2025 operating performance deteriorated with revenue down (-6.0%) and negative EBIT margin (-2.5%). Cash flow stayed positive (FCF €8.5M) but cash conversion weakened versus 2024 and has been uneven historically.

Income Statement

Profitability has weakened sharply: 2025 revenue declined (-6.0%) and operating profit turned negative (EBIT margin -2.5%), a major deterioration from 2023–2024. While gross margin remains positive (42.0% in 2025), it fell meaningfully versus prior years, and net margin is now thin (2.8%), indicating limited cushion if pricing or costs move against the company. Positives include continued net profitability in 2025 and historically strong margins in 2023–2024, but the near-term trajectory is clearly down.

Balance Sheet

Balance sheet strength is a key positive: leverage is very low, with debt-to-equity at 0.04 in 2025 (improving from 0.36 in 2020) and a large equity base relative to assets. This provides resilience through cyclical weakness. The main drawback is declining returns on equity as earnings fell (ROE down to 1.8% in 2025 from 6.8% in 2024 and 14.8% in 2023), suggesting the company is currently not generating strong profitability on its capital despite conservative leverage.

Cash Flow

Cash generation is mixed. Operating cash flow stayed positive in 2025 (€18.9M) and free cash flow was positive (€8.5M), but cash conversion weakened versus 2024: operating cash flow covered a smaller share of net income (0.40 vs 0.78) and free cash flow was less than half of net income (0.45 vs 0.85). Historical volatility is also a concern (negative free cash flow in 2020 and 2022), though 2023–2025 show improvement back to positive free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	230.69M	216.74M	238.19M	250.76M	295.02M	237.23M
Gross Profit	137.59M	91.09M	147.12M	145.94M	209.61M	147.96M
EBITDA	32.40M	9.09M	42.03M	66.65M	30.54M	22.96M
Net Income	15.06M	6.06M	23.16M	47.13M	15.84M	9.29M
Balance Sheet
Total Assets	405.52M	389.07M	407.68M	389.03M	389.10M	385.84M
Cash, Cash Equivalents and Short-Term Investments	78.63M	127.63M	122.08M	118.75M	77.01M	105.24M
Total Debt	15.75M	13.04M	18.43M	24.29M	37.78M	52.12M
Total Liabilities	71.67M	56.99M	68.06M	70.63M	101.74M	116.19M
Stockholders Equity	333.85M	332.08M	339.62M	318.41M	287.36M	269.65M
Cash Flow
Free Cash Flow	0.00	8.47M	35.13M	27.61M	-4.61M	25.08M
Operating Cash Flow	0.00	18.93M	41.44M	33.01M	16.13M	46.88M
Investing Cash Flow	0.00	2.37M	-14.83M	32.76M	-23.71M	-21.80M
Financing Cash Flow	0.00	-15.51M	-18.36M	-23.69M	-21.18M	-46.32M

Iberpapel Gestion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.60
• 50DMA: Negative
• 100DMA: Negative
• 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:IBG, the sentiment is Negative. The current price of 20.6 is below the 20-day moving average (MA) of 20.94, below the 50-day MA of 20.69, and above the 200-day MA of 19.99, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:IBG.

Iberpapel Gestion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IBG	52 Neutral	€215.68M	35.71	3.84%	4.24%	-8.26%	-53.40%
ENC	48 Neutral	€564.72M	-4.63	-5.36%	4.84%	-11.51%	-170.43%