Iberdrola (IBDRY) AI Stock Analysis

• Market Cap: $124.41B
• Dividend Yield: 3.86%
• Average Volume (3M): 18.72K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.04
• Revenue Growth: -1.57%
• EPS Growth: -20.88%
• Country: US
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 76
• Industry: Diversified Utilities
• EPS (TTM): 1.09
• Shares Outstanding: 1,670,306,900
• 10 Day Avg. Volume: 7,238
• 30 Day Avg. Volume: 18,716
• PEG Ratio: 1.49
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 41.77
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 8.20
• Enterprise Value/Ebitda: 9.81
• 1Y Price Target: $82.00
• Price Target Upside: 9.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $82.00 ▲(9.09% Upside)

Iberdrola's strong financial performance and positive earnings call significantly boost its stock score. The company's growth in net profit and investments, particularly in the Networks division, underpin a robust outlook. While technical analysis points to short-term challenges, the stock remains attractively valued with a solid dividend yield.

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 through multiple streams, primarily from the sale of electricity and gas to residential, commercial, and industrial customers. A significant portion of its income comes from renewable energy generation, particularly from its extensive portfolio of wind farms and hydroelectric plants. The company also earns revenue from regulated distribution networks, which ensure stable cash flows. Additionally, Iberdrola engages in energy trading and offers energy management services, which further contribute to its earnings. Strategic partnerships and joint ventures, particularly in renewable energy projects, enhance its capacity and market reach, solidifying its position in the global energy landscape.

Iberdrola Financial Statement Overview

Summary

Iberdrola demonstrates strong financial performance with consistent profitability, efficient cost management, and robust cash flows. The company's balance sheet is stable, although the high debt level is a potential risk. Overall, the financial statements indicate a well-managed utility company.

Income Statement

Iberdrola has shown consistent profitability with strong gross profit and EBIT margins. The gross profit margin stands at approximately 48.97%, and the EBIT margin is around 18.19%, indicating efficient cost management. Despite a slight revenue decline from 2022 to 2023, the net profit margin remains healthy at about 9.74%. Overall, the company demonstrates solid income statement performance with stable margins.

Balance Sheet

The company's balance sheet shows a balanced equity ratio of about 29.76% and a debt-to-equity ratio of 1.15, which is moderate for the industry. While the equity ratio indicates a stable financial structure, the relatively high debt level could pose a potential risk if not managed carefully. Return on equity is strong at approximately 10.19%, reflecting effective use of shareholder capital.

Cash Flow

Iberdrola's cash flow statements reveal robust operational cash flows, with an operating cash flow to net income ratio of 2.48, highlighting strong cash generation capabilities. The free cash flow has seen a decline, yet it remains positive, demonstrating financial flexibility. The company maintains a healthy free cash flow to net income ratio of 0.43, indicating efficient cash management.

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	17.53B	13.92B	12.77B	11.80B	10.12B
Net Income	6.19B	4.80B	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	3.81B	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	2.05B	4.25B	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	-9.69B	-10.15B	-9.49B	-6.64B
Financing Cash Flow	-5.61B	-2.27B	-4.09B	151.00M	1.87B	-71.00M

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBDRY, the sentiment is Positive. The current price of 75.17 is above the 20-day moving average (MA) of 74.24, above the 50-day MA of 73.74, and above the 200-day MA of 63.78, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBDRY.

Iberdrola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	79 Outperform	$6.48B	4.93	22.94%	15.74%	-3.27%	-3.44%
IBDRY	79 Outperform	$124.41B	21.35	10.61%	3.86%	-1.57%	-20.88%
SRE	75 Outperform	$53.36B	19.78	8.87%	3.08%	0.46%	-11.77%
ELP	72 Outperform	$6.40B	12.56	9.81%	6.19%	-5.28%	14.50%
Sector *	67 Neutral	$17.66B	18.13	5.33%	3.62%	7.33%	12.21%
BIP	65 Neutral	$20.33B	1,586.60	1.06%	5.32%	8.86%	―
AES	65 Neutral	$9.50B	9.52	21.17%	5.24%	-3.19%	30.48%