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Iberdrola (IBDRY)
:IBDRY
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Iberdrola
(OTC:IBDRY)
Rating:82Outperform
Price Target:―
Iberdrola (IBDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$121.72B
Dividend Yield2.94%
Average Volume (3M)25.97K
Price to Earnings (P/E)22.9
Beta (1Y)0.10
Revenue Growth-4.55%
EPS Growth-21.12%
CountryUS
Employees44,701
SectorUtilities
Sector Strength74
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.37
Shares Outstanding1,610,140,300
10 Day Avg. Volume5,615
30 Day Avg. Volume25,966
Financial Highlights & Ratios
PEG Ratio2.01
Price to Book (P/B)1.77
Price to Sales (P/S)0.00
P/FCF Ratio19.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 generates revenue through several key streams, primarily centered on the generation and distribution of electricity. The company's income is largely derived from its renewable energy operations, where it produces electricity from wind, solar, and hydroelectric sources. Another significant source of revenue comes from its regulated network operations, which involve the transmission and distribution of electricity through its grid infrastructure. Additionally, Iberdrola earns from its customer solutions segment, which includes the sale of electricity and gas to end users, as well as energy management services. Strategic partnerships and investments in clean energy technologies further bolster its revenue, contributing to its financial performance by expanding capacity and enhancing operational efficiency.
Iberdrola Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 6.72%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant net profit and investment growth. The networks segment showed excellent results, contributing to a positive cash flow. However, challenges were noted in the energy production segment and specific regional performances, notably in Spain.Q1-2025 Updates
Positive Updates
Significant Net Profit Increase
Net profit for Q1 2025 reached €2,004 million, marking a 26% increase year-on-year, excluding capital gains from last year's divestment of thermal generation.
Record Investments
Investments hit a new record of €2,720 million in Q1, up 14% year-on-year, with significant contributions from the U.S. and U.K. markets.
Strong Performance in Networks Business
EBITDA in the Networks segment increased by 43% to €2,415 million, driven by better performance in the U.K. and U.S.
Positive Cash Flow Growth
Cash flow increased by 11% to €3,502 million compared to Q1 2024, supporting the company's financial metrics and ratings.
Expansion in Regulated Asset Base
The regulatory asset base in the U.K. has doubled in five years, reaching €15.5 billion, and is expected to exceed €51 billion by year-end.
Negative Updates
Decreased EBITDA in Energy Production and Customer Business
EBITDA for the energy production and customer business fell 9% compared to adjusted Q1 2024, affected by margin normalization and lower wind resources.
Reduced Performance in Spain
EBITDA in Spain decreased by 70%, partially due to the normalization of margins in the country.
Impact of Blackout in Spain
A recent unprecedented blackout in Spain affected operations, although the company managed to restore service swiftly.
Company Guidance
During the recent call discussing Iberdrola's fiscal year 2025 first-quarter results, the company reported a net profit of €2,004 million, reflecting a 26% year-over-year increase, excluding capital gains from the previous year's divestment of thermal generation. The reported EBITDA for the quarter was €4,643 million, marking a 12% rise in like-for-like terms. This growth was primarily driven by a robust performance in the Networks division, which accounted for 52% of the EBITDA through March. Investments surged by 14% to a record €2,720 million for the quarter, with a significant 30% increase in the U.S. and U.K., which together represented two-thirds of the total investment. The company also highlighted a 7% increase in renewables investments, particularly in Offshore wind, which saw a 50% rise. Cash flow improved by 11% to €3,502 million, aligning with a solid BBB+ rating. The company reaffirmed its guidance for mid- to high single-digit net profit growth for the year, excluding asset rotation capital gains, and anticipated a double-digit growth if the recognition of past costs in the U.S. is included.Iberdrola Financial Statement Overview
Summary
Iberdrola demonstrates a strong financial profile typical for a regulated utility. The income statement shows solid profitability with stable margins. The balance sheet is moderately leveraged, and cash flows are robust, though debt levels warrant monitoring.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.85
Very Positive
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.78
Positive
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.80
Positive
| 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 | 23.88B | 23.30B | 20.20B | 17.06B | 16.14B |
| EBITDA | 17.58B | 17.53B | 13.92B | 12.77B | 11.80B | 10.12B |
| Net Income | 6.42B | 4.80B | 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 | 3.81B | 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 | 4.25B | 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 | -9.69B | -10.15B | -9.49B | -6.64B |
| Financing Cash Flow | -2.92B | -2.27B | -4.09B | 151.00M | 1.87B | -71.00M |
Iberdrola Technical Analysis
Positive
76.52
Price Trends
72.55
Positive
66.50
Positive
61.74
Positive
Market Momentum
1.38
Negative
62.45
Neutral
60.79
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 76.52 is above the 20-day moving average (MA) of 74.67, above the 50-day MA of 72.55, and above the 200-day MA of 61.74, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 60.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBDRY.
Iberdrola Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $121.72B | 22.85 | 10.48% | 2.94% | -4.55% | -21.12% | |
80 Outperform | $6.30B | 4.32 | 26.38% | 72.95% | -4.14% | 13.02% | |
78 Outperform | $6.47B | 12.65 | 9.22% | 3.48% | -7.02% | 17.33% | |
73 Outperform | $49.15B | 16.58 | 9.76% | 3.42% | -0.39% | 0.75% | |
67 Neutral | $16.41B | 16.95 | 4.63% | 3.59% | 4.77% | 6.10% | |
64 Neutral | $21.90B | 2,867.59 | 0.47% | 5.12% | 12.40% | -108.27% | |
53 Neutral | $7.63B | 5.85 | 29.79% | 6.57% | -3.22% | 141.11% |
* Utilities Sector Average
Performance Comparison
IBDRY
Iberdrola
76.52
24.36
46.70%
BIP
Brookfield Infrastructure
33.57
7.77
30.12%
CIG
Companhia Energetica Minas Gerais
1.91
0.37
24.03%
ELP
Companhia Paranaense de Energia Pfd
8.91
2.61
41.43%
SRE
Sempra Energy
75.36
2.76
3.80%
AES
AES
10.72
-6.10
-36.27%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.