BME: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

Fundamentals

Proven 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


Market Performance


7 Day Return

-1.0%

IBE

0.03%

ES Electric Utilities

0.5%

ES Market


1 Year Return

45.3%

IBE

17.6%

ES Electric Utilities

4.6%

ES Market

Return vs Industry: IBE exceeded the Spanish Electric Utilities industry which returned 17.6% over the past year.

Return vs Market: IBE exceeded the Spanish Market which returned 4.6% over the past year.


Shareholder returns

IBEIndustryMarket
7 Day-1.0%0.03%0.5%
30 Day-2.3%-1.2%1.6%
90 Day7.2%2.6%0.4%
1 Year50.6%45.3%22.3%17.6%8.1%4.6%
3 Year65.3%47.5%56.4%36.3%13.6%3.1%
5 Year100.3%66.2%48.3%10.7%9.0%-11.5%

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

Valuation

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

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IBE (€9.12) is trading below our estimate of fair value (€14.94)

Significantly Undervalued: 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 (17.5x) compared to the Electric Utilities industry average (11.8x).

PE vs Market: IBE is poor value based on its PE Ratio (17.5x) compared to the Spanish market (16.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: IBE is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: IBE is overvalued based on its PB Ratio (1.6x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Iberdrola forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBE's forecast earnings growth (5.7% per year) is above the savings rate (1.5%).

Earnings vs Market: IBE's earnings (5.7% per year) are forecast to grow slower than the Spanish market (7.6% 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 Spanish market (3.7% 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

High 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?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IBE's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: IBE's earnings growth over the past year (10.4%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: IBE earnings growth over the past year (10.4%) exceeded the Electric Utilities industry 2.3%.


Return on Equity

High ROE: IBE's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: IBE's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: IBE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Iberdrola's financial position?


Financial Position Analysis

Short Term Liabilities: IBE's short term assets (€13.5B) do not cover its short term liabilities (€18.7B)

Long Term Liabilities: IBE's short term assets (13.5B) do not cover its long term liabilities (52.9B)


Debt to Equity History and Analysis

Debt Level: IBE's debt to equity ratio (84.9%) is considered high

Reducing Debt: IBE's debt to equity ratio has increased from 76.7% to 84.9% 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 (6.9x 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?

3.85%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.3%markettop25%5.7%industryaverage4.0%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IBE's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Spanish market (2.31%).

High Dividend: IBE's dividend (3.85%) is low compared to the top 25% of dividend payers in the Spanish market (5.65%).

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 (38.4%), 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 (70.5% payout ratio).


Next Steps

Management

What is the CEO of Iberdrola's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

José Ignacio Sánchez Galán (69yo)

18.4yrs

Tenure

€6,149,000

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: José Ignacio's total compensation ($USD0.00) is too low to compare against companies of similar size in the Spanish market ($USD2.98M).

Compensation vs Earnings: José Ignacio's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

Experienced Management: IBE's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: IBE's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: IBE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€1,37330 Jul 19
Denise Holt
EntityIndividual
Shares166
Max Price€9.15
Buy€17,32026 Jul 19
Georgina Yamilet Kessel Martínez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max Price€8.66
Buy€30,02920 Jun 19
Sara De La Rica Goiricelaya
EntityIndividual
Shares3,374
Max Price€8.90

Ownership Breakdown


Management Team

  • José Ignacio Sánchez Galán (69yo)

    Chairman & CEO

    • Tenure: 18.4yrs
    • Compensation: €6.15m
  • José Sainz Armada (60yo)

    Chief Financial & Resources Officer

    • Tenure: 0yrs
  • Pedro Azagra Blázquez (51yo)

    Director of Corporate Development

    • Tenure: 0yrs
  • Francisco Martínez Córcoles (63yo)

    Group Business CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: €905.00k
  • Santiago Matias Martínez Garrido (51yo)

    Chief Legal Officer

    • Tenure: 2.1yrs
  • Juan Carlos Rebollo Liceaga (57yo)

    Director of Administration & Control

    • Tenure: 0yrs
  • Jesús García López

    Director of External Communication

    • Tenure: 0yrs
  • Agustín Delgado

    Chief Innovation & Sustainability Officer

    • Tenure: 0yrs
  • Ramón Castresana

    Director of Human Resources

    • Tenure: 0yrs
  • Ignacio Cuenca Arambarri (58yo)

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • José Ignacio Sánchez Galán (69yo)

    Chairman & CEO

    • Tenure: 18.4yrs
    • Compensation: €6.15m
  • Joaquim Augusto Nunes de Pina Moura

    Chairman of Iberdrola Portugal

    • Tenure: 0yrs
  • Francisco Martínez Córcoles (63yo)

    Group Business CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: €905.00k
  • Inés Macho Stadler (60yo)

    Non-Executive Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: €517.00k
  • Georgina Yamilet Kessel Martínez (69yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: €499.00k
  • Iñigo Víctor de Oriol Ibarra (57yo)

    External Director

    • Tenure: 13.5yrs
    • Compensation: €299.00k
  • María Helena Antolín Raybaud (53yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: €487.00k
  • Santiago Matias Martínez Garrido (51yo)

    Chief Legal Officer

    • Tenure: 2.1yrs
  • Samantha Barber (50yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: €514.00k
  • Juan Manuel González Serna (64yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: €210.00k

Company Information

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


Key Information

  • Name: Iberdrola, S.A.
  • Ticker: IBE
  • Exchange: BME
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €58.028b
  • Shares outstanding: 6.36b
  • 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 pow ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:54
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.