Iberdrola (IBDRY) AI Stock Analysis

• Market Cap: $147.50B
• Dividend Yield: 3.38%
• Average Volume (3M): 29.65K
• Price to Earnings (P/E): 23.2
• Beta (1Y): -0.01
• Revenue Growth: 2.21%
• EPS Growth: -16.95%
• Country: US
• Employees: 44,701
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.09
• Shares Outstanding: 1,670,306,900
• 10 Day Avg. Volume: 7,317
• 30 Day Avg. Volume: 29,653
• PEG Ratio: 1.27
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 41.77
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 6.66
• Enterprise Value/Ebitda: 8.76
• 1Y Price Target: $55.45
• Price Target Upside: -38.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $102.00 ▲(13.64% Upside)

Iberdrola's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic investments. The technical indicators suggest caution due to potential overbought conditions, and the valuation indicates moderate upside. The company's stable financial profile and strategic focus on renewables and networks support its long-term prospects, though regulatory challenges in Spain and debt levels warrant attention.

Positive Factors

Renewable-focused, diversified global business

Iberdrola's integrated model across generation, distribution and retail plus a large renewable asset base provides diversified, durable cashflows. Its global footprint reduces reliance on any single market and aligns with the long-term energy transition driving sustained demand for clean power and networks.

Strong operational cash generation

Robust operating cash flow (2.48x net income) and positive free cash flow give Iberdrola durable funding for capex, dividends and debt reduction. Sustainable cash generation supports its long-term investment program in renewables and networks without excessive external financing dependence.

Large, sustained investment program and regulated growth

Record €9bn investments and plans to grow the regulated asset base materially increase scale and predictable regulated revenues. Building regulated assets and new capacity strengthens long-term EBITDA visibility and supports returns profile as regulatory frameworks in key markets mature.

Negative Factors

Moderate leverage and sizable net debt

A debt-to-equity around 1.15 and substantial consolidated net debt create structural leverage in a capital-intensive business. This constrains financial flexibility, increases interest-rate sensitivity and could limit the pace of future investments or increase funding costs if market conditions tighten.

Regulatory uncertainty in core market (Spain)

Uncertainty over Spain's network regulatory framework threatens returns on regulated investments and could delay or reprice planned projects. For a company with significant Iberian exposure, unclear rules raise long-term risk to cashflows, capital allocation and the pace of domestic network expansion.

Exposure of renewables margins to market and ancillary costs

Merchant renewables remain exposed to wholesale price swings and rising ancillary service costs, which can erode margins absent long-term contracts. Persistent market volatility or structural system operation changes could depress returns on new capacity and require more hedging or contracted revenue strategies.

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 key streams, primarily from electricity generation, distribution, and retail services. The company capitalizes on its extensive portfolio of renewable energy assets, which produce electricity that is sold to wholesale markets and directly to consumers. Revenue is also derived from its regulated distribution networks, which charge fees for delivering electricity to end-users. Furthermore, Iberdrola earns income through long-term energy supply contracts, especially in regions where it has established a strong market presence. Strategic partnerships with other companies and investments in international markets enhance its revenue potential. The company's commitment to sustainability and innovation in energy solutions further solidifies its position in the growing renewable energy market, contributing positively to its earnings.

Iberdrola Financial Statement Overview

Summary

Iberdrola demonstrates strong financial performance with consistent profitability and efficient cost management. The income statement shows solid margins, and the balance sheet reflects a stable financial structure despite moderate leverage. Cash flows are robust, supporting operational and investment needs, though the debt level requires careful management.

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	55.33B	44.74B	49.34B	53.95B	39.11B	33.15B
Gross Profit	27.03B	23.88B	23.30B	20.20B	17.06B	16.14B
EBITDA	20.55B	17.53B	14.36B	12.77B	11.80B	10.12B
Net Income	6.38B	5.61B	4.80B	4.34B	3.88B	3.61B
Balance Sheet
Total Assets	157.57B	158.29B	150.03B	154.67B	141.75B	122.52B
Cash, Cash Equivalents and Short-Term Investments	3.34B	4.57B	3.81B	7.47B	5.52B	3.98B
Total Debt	56.38B	57.73B	63.93B	50.42B	44.27B	40.51B
Total Liabilities	98.15B	97.24B	89.74B	96.55B	85.63B	75.30B
Stockholders Equity	53.88B	47.13B	43.11B	41.12B	40.48B	35.41B
Cash Flow
Free Cash Flow	2.48B	2.05B	4.25B	3.66B	1.19B	2.50B
Operating Cash Flow	6.62B	11.93B	12.13B	10.44B	8.11B	8.35B
Investing Cash Flow	-6.01B	-8.40B	-9.69B	-10.15B	-9.49B	-6.64B
Financing Cash Flow	-2.21B	-2.27B	-4.09B	151.00M	1.87B	-71.00M

Iberdrola Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.76
• 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 IBDRY, the sentiment is Positive. The current price of 89.76 is above the 20-day moving average (MA) of 87.42, above the 50-day MA of 85.21, and above the 200-day MA of 76.50, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 88.03 is Negative, 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
IBDRY	77 Outperform	$147.50B	23.20	11.16%	3.38%	2.21%	-16.95%
CIG	70 Outperform	$7.01B	8.82	13.35%	12.98%	-0.38%	-53.94%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SRE	65 Neutral	$56.27B	26.55	7.10%	2.91%	9.07%	-28.58%
AES	65 Neutral	$10.49B	8.97	23.02%	5.06%	-1.55%	12.83%
BIP	59 Neutral	$16.92B	37.52	7.99%	4.92%	8.14%	―