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IBE

IberdrolaBME:IBE Stock Report

Market Cap

€56.9b

7D

-1.5%

1Y

-11.2%

Updated

25 Sep, 2021

Data

Company Financials +
IBE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends5/6

IBE Overview

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain and internationally.

Iberdrola Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Iberdrola
Historical stock prices
Current Share Price€9.22
52 Week High€9.14
52 Week Low€12.57
Beta0.47
1 Month Change-12.00%
3 Month Change-10.98%
1 Year Change-11.24%
3 Year Change45.44%
5 Year Change52.31%
Change since IPO636.12%

Recent News & Updates

Aug 17
Does Iberdrola (BME:IBE) Have A Healthy Balance Sheet?

Does Iberdrola (BME:IBE) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 08
Calculating The Fair Value Of Iberdrola, S.A. (BME:IBE)

Calculating The Fair Value Of Iberdrola, S.A. (BME:IBE)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Iberdrola, S.A...

May 19
These 4 Measures Indicate That Iberdrola (BME:IBE) Is Using Debt Extensively

These 4 Measures Indicate That Iberdrola (BME:IBE) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

IBEES Electric UtilitiesES Market
7D-1.5%-0.6%1.0%
1Y-11.2%-8.2%27.8%

Return vs Industry: IBE underperformed the Spanish Electric Utilities industry which returned -8.2% over the past year.

Return vs Market: IBE underperformed the Spanish Market which returned 27.8% over the past year.

Price Volatility

Is IBE's price volatile compared to industry and market?
IBE volatility
IBE Beta0.47
Industry Beta0.65
Market Beta1

Stable Share Price: IBE is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IBE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
184038,006Jose Ignacio Sanchez Galanhttps://www.iberdrola.com

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.

Iberdrola Fundamentals Summary

How do Iberdrola's earnings and revenue compare to its market cap?
IBE fundamental statistics
Market Cap€56.92b
Earnings (TTM)€3.22b
Revenue (TTM)€35.43b

17.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBE income statement (TTM)
Revenue€35.43b
Cost of Revenue€18.83b
Gross Profit€16.60b
Expenses€13.38b
Earnings€3.22b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)0.52
Gross Margin46.86%
Net Profit Margin9.08%
Debt/Equity Ratio75.0%

How did IBE perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

84%

Payout Ratio

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBE (€9.22) is trading below our estimate of fair value (€9.48)

Significantly Below Fair Value: IBE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IBE is poor value based on its PE Ratio (17.7x) compared to the Spanish Electric Utilities industry average (17.5x).

PE vs Market: IBE is good value based on its PE Ratio (17.7x) compared to the Spanish market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: IBE is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: IBE is good value based on its PB Ratio (1.6x) compared to the ES Electric Utilities industry average (2.7x).


Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBE's forecast earnings growth (7.5% per year) is above the savings rate (1%).

Earnings vs Market: IBE's earnings (7.5% per year) are forecast to grow slower than the Spanish market (16.6% per year).

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

Revenue vs Market: IBE's revenue (3.9% per year) is forecast to grow slower than the Spanish market (6.1% per year).

High Growth Revenue: IBE's revenue (3.9% 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 (10.6%).


Past Performance

How has Iberdrola performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBE has high quality earnings.

Growing Profit Margin: IBE's current net profit margins (9.1%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: IBE's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: IBE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IBE had negative earnings growth (-12.5%) over the past year, making it difficult to compare to the Electric Utilities industry average (8.2%).


Return on Equity

High ROE: IBE's Return on Equity (7.3%) is considered low.


Financial Health

How is Iberdrola's financial position?


Financial Position Analysis

Short Term Liabilities: IBE's short term assets (€17.1B) do not cover its short term liabilities (€18.8B).

Long Term Liabilities: IBE's short term assets (€17.1B) do not cover its long term liabilities (€59.4B).


Debt to Equity History and Analysis

Debt Level: IBE's debt to equity ratio (75%) is considered high.

Reducing Debt: IBE's debt to equity ratio has reduced from 78.1% to 75% over the past 5 years.

Debt Coverage: IBE's debt is well covered by operating cash flow (22.9%).

Interest Coverage: IBE's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Dividend

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

4.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBE's dividend (4.56%) is higher than the bottom 25% of dividend payers in the Spanish market (1.5%).

High Dividend: IBE's dividend (4.56%) is low compared to the top 25% of dividend payers in the Spanish market (5.12%).


Stability and Growth of Payments

Stable Dividend: IBE's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.8%), IBE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IBE's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Jose Ignacio Sanchez Galan (71 yo)

20.33yrs

Tenure

€6,242,000

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 ($USD7.31M) is above average for companies of similar size in the Spanish market ($USD2.83M).

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


Leadership Team

Experienced Management: IBE's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: IBE's board of directors are considered experienced (6.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Iberdrola, S.A.
  • Ticker: IBE
  • Exchange: BME
  • Founded: 1840
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €56.924b
  • Shares outstanding: 6.18b
  • Website: https://www.iberdrola.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 17:48
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.