WBAG:IBE

Stock Analysis Report

Executive Summary

Iberdrola, S.A. engages in the generation, transmission, distribution and supply of electricity in the United States, the United Kingdom, Mexico, Brazil, and Europe.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Iberdrola's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.8%

IBE

3.6%

AT Electric Utilities

-0.4%

AT Market


1 Year Return

51.3%

IBE

32.8%

AT Electric Utilities

3.9%

AT Market

Return vs Industry: IBE exceeded the Austrian Electric Utilities industry which returned 32.8% over the past year.

Return vs Market: IBE exceeded the Austrian Market which returned 3.9% over the past year.


Shareholder returns

IBEIndustryMarket
7 Day5.8%3.6%-0.4%
30 Day19.3%9.8%-0.2%
90 Day26.4%20.6%-0.7%
1 Year56.4%51.3%38.0%32.8%7.7%3.9%
3 Yearn/a85.9%61.9%26.0%14.7%
5 Yearn/a69.3%30.9%52.7%31.5%

Price Volatility Vs. Market

How volatile is Iberdrola's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Iberdrola undervalued compared to its fair value and its price relative to the market?

20.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IBE (€11.21) is trading above our estimate of fair value (€8.91)

Significantly Below Fair Value: IBE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IBE is poor value based on its PE Ratio (20.3x) compared to the Electric Utilities industry average (14.4x).

PE vs Market: IBE is poor value based on its PE Ratio (20.3x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: IBE is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: IBE is overvalued based on its PB Ratio (1.8x) compared to the XE Electric Utilities industry average (1x).


Next Steps

Future Growth

How is Iberdrola forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBE's forecast earnings growth (5.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: IBE's earnings (5.2% per year) are forecast to grow slower than the Austrian market (9.8% per year).

High Growth Earnings: IBE's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBE's revenue (4.5% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: IBE's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBE's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Iberdrola performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBE has high quality earnings.

Growing Profit Margin: IBE's current net profit margins (9.9%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: IBE's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: IBE's earnings growth over the past year (27.8%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: IBE earnings growth over the past year (27.8%) exceeded the Electric Utilities industry 8.6%.


Return on Equity

High ROE: IBE's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Iberdrola's financial position?


Financial Position Analysis

Short Term Liabilities: IBE's short term assets (€13.9B) do not cover its short term liabilities (€17.6B).

Long Term Liabilities: IBE's short term assets (€13.9B) do not cover its long term liabilities (€55.1B).


Debt to Equity History and Analysis

Debt Level: IBE's debt to equity ratio (82.8%) is considered high.

Reducing Debt: IBE's debt to equity ratio has increased from 77.7% to 82.8% over the past 5 years.

Debt Coverage: IBE's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: IBE's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

Inventory Level: IBE has a high level of physical assets or inventory.

Debt Coverage by Assets: IBE's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Iberdrola's current dividend yield, its reliability and sustainability?

3.18%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.6%markettop25%4.5%industryaverage3.5%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: IBE's dividend (3.18%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: IBE's dividend (3.18%) is low compared to the top 25% of dividend payers in the Austrian market (4.54%).


Stability and Growth of Payments

Stable Dividend: IBE's dividend payments have been volatile in the past 10 years.

Growing Dividend: IBE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), IBE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IBE's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Jose Ignacio Sanchez Galan (69yo)

18.8yrs

Tenure

€6,062,000

Compensation

Mr. Jose Ignacio Sanchez Galan has been the Chief Executive Officer of Iberdrola, S.A. since May 2001. He serves as the Managing Director of Industria de Turbo Propulsores (ITP) and the Chief Executive Off ...


CEO Compensation Analysis

Compensation vs Market: Jose Ignacio's total compensation ($USD6.54M) is above average for companies of similar size in the Austrian market ($USD3.60M).

Compensation vs Earnings: Jose Ignacio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jose Ignacio Sanchez Galan
Chairman & CEO18.8yrs€6.06m0.17% 120.8m
Francisco Martinez Corcoles
Group Business CEO & Executive Director2.9yrs€1.92m0.0084% 6.0m
Jose Sainz Armada
Chief Financial Officer0yrsno datano data
Juan Carlos Rebollo Liceaga
Director of Administration & Control0yrsno datano data
Ignacio Cuenca Arambarri
Head of Investor Relations0yrsno datano data
Santiago Matias Martínez Garrido
Director of Legal Servicies & Deputy Secretary4.1yrsno datano data
Pedro Azagra Blazquez
Director of Corporate Development0yrsno datano data
Ramón Castresana
Director of Human Resources0yrsno datano data
Agustín Delgado
Chief Innovation & Sustainability Officer0yrsno datano data
Carlos Sallé Alonso
Senior Vice President of Policies and Climate Change - Iberdrola0yrsno datano data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Management: IBE's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jose Ignacio Sanchez Galan
Chairman & CEO18.8yrs€6.06m0.17% 120.8m
Francisco Martinez Corcoles
Group Business CEO & Executive Director2.9yrs€1.92m0.0084% 6.0m
Joaquim Augusto Nunes de Pina Moura
Chairman of Iberdrola Portugal0yrsno datano data
Ines Macho Stadler
Non-Executive Vice Chairman1.7yrs€511.00k0.0011% 776.2k
Georgina Yamilet Kessel Martinez
Independent Director6.8yrs€505.00k0.00014% 99.7k
Inigo Víctor de Oriol Ibarra
External Director13.8yrs€296.00k0.019% 13.6m
Maria Helena Antolin Raybaud
Independent Director9.9yrs€486.00k0.000060% 42.7k
Samantha Barber
Independent Director11.6yrs€516.00k0.000030% 21.4k
Juan Manuel Gonzalez Serna
Lead Independent Director1.7yrs€387.00k0.00072% 512.7k
Xabier Sagredo Ormaza
External Director3.8yrs€295.00kno data

6.8yrs

Average Tenure

60yo

Average Age

Experienced Board: IBE's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Iberdrola, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Iberdrola, S.A.
  • Ticker: IBE
  • Exchange: WBAG
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €71.207b
  • Shares outstanding: 6.45b
  • Website: https://www.iberdrola.com

Number of Employees


Location

  • Iberdrola, S.A.
  • Plaza Euskadi 5
  • Bilbao
  • Basque Country
  • 48009
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBEXTRA (XETRA Trading Platform)YesBearer SharesDEEURNov 1980
0HITLSE (London Stock Exchange)YesBearer SharesGBEURNov 1980
IBEBME (Bolsas y Mercados Espanoles)YesBearer SharesESEURNov 1980
IBE1DB (Deutsche Boerse AG)YesBearer SharesDEEURNov 1980
IBDS.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDNov 1980
IBEEBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURNov 1980
IBEBIT (Borsa Italiana)YesBearer SharesITEURNov 1980
IBE NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNNov 1980
IBEWBAG (Wiener Boerse AG)YesBearer SharesATEURNov 1980
IBDR.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDApr 2007

Biography

Iberdrola, S.A. engages in the generation, transmission, distribution and supply of electricity in the United States, the United Kingdom, Mexico, Brazil, and Europe. It generates and markets electrical power using renewable sources, such as onshore and offshore wind, hydro, solar thermal, photovoltaic, biomass, etc. The company supplies energy to approximately 100 million people. It is also involved in the transmission of energy over 233 kilometers with 1,200 MW transmission capacity from Quebec to Massachusetts through the border state of Maine; and operation of combined cycle power plants. In addition, the company provides electric vehicles and smart meters; operates PowerUp, an application, which allows customers to buy gas and electricity with their mobile phone; and operates an online store where customers can search for, compare, and buy energy-efficient products. Iberdrola, S.A. is based in Bilbao, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:54
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.