Iberdrola (IBDRY) AI Stock Analysis

Compare

156 Followers

Top Page

Iberdrola

(OTC:IBDRY)

Rating:79Outperform

Price Target:

$82.00

▲(13.07% 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 (IBDRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$119.70B

Dividend Yield4%

Average Volume (3M)18.11K

Price to Earnings (P/E)20.5

Beta (1Y)0.04

Revenue Growth-1.57%

EPS Growth-20.88%

CountryUS

Employees44,701

SectorUtilities

Sector Strength88

IndustryDiversified Utilities

Share Statistics

EPS (TTM)1.09

Shares Outstanding1,670,306,900

10 Day Avg. Volume11,538

30 Day Avg. Volume18,115

Financial Highlights & Ratios

PEG Ratio1.49

Price to Book (P/B)1.82

Price to Sales (P/S)1.92

P/FCF Ratio41.77

Enterprise Value/Market Cap1.65

Enterprise Value/Revenue3.57

Enterprise Value/Gross Profit8.20

Enterprise Value/Ebitda9.81

Forecast

1Y Price Target

$82.00

Price Target Upside13.07% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

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 makes money primarily through the generation and distribution of electricity. Its revenue model is centered around several key streams: renewable energy production, particularly from wind and solar farms; traditional electricity generation from nuclear and hydroelectric sources; and the transmission and distribution of electricity to residential, commercial, and industrial customers. The company benefits from long-term power purchase agreements (PPAs) and government incentives for renewable energy projects. Additionally, Iberdrola's investment in smart grid technology and infrastructure improvements enhances operational efficiency and reliability, contributing to its financial performance. Strategic partnerships and acquisitions in various markets also play a role in expanding its revenue opportunities and market presence.

Iberdrola Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q1-2025)

% Change Since: -2.71%|

Next Earnings Date:Oct 30, 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 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

Very Positive

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

Positive

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

Positive

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 Price72.52

Price Trends

50DMA

72.83

Negative

100DMA

69.77

Positive

200DMA

62.56

Positive

Market Momentum

MACD

-0.37

Negative

RSI

52.25

Neutral

STOCH

92.52

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 72.52 is above the 20-day moving average (MA) of 71.98, below the 50-day MA of 72.83, and above the 200-day MA of 62.56, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 92.52 is Negative, 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
IBDRY	79 Outperform	$119.70B	20.47	10.61%	4.00%	-1.57%	-20.88%
CIG	75 Outperform	$6.24B	4.23	26.38%	4.43%	-4.14%	13.02%
ELP	74 Outperform	$6.47B	12.68	9.22%	6.05%	-7.02%	17.33%
SRE	74 Outperform	$52.92B	19.65	8.87%	3.06%	-0.39%	0.75%
Sector *	67 Neutral	$17.69B	17.89	6.85%	3.50%	6.34%	4.32%
AES	64 Neutral	$9.06B	8.99	21.17%	5.45%	-3.19%	30.48%
BIP	63 Neutral	$20.16B	680.84	1.06%	5.52%	8.86%	―

* Utilities Sector Average

Performance Comparison

IBDRY

Iberdrola

72.52

21.47

42.06%

BIP

Brookfield Infrastructure

30.27

1.64

5.73%

CIG

Companhia Energetica Minas Gerais

1.91

0.25

15.06%

ELP

Companhia Paranaense de Energia Pfd

9.24

2.18

30.88%

SRE

Sempra Energy

82.59

6.65

8.76%

AES

12.85

-2.88

-18.31%

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.Date of analysis: Aug 05, 2025