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Iberdrola (ES:IBE)
BME:IBE

Iberdrola (IBE) AI Stock Analysis

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ES

Iberdrola

(BME:IBE)

77Outperform
Iberdrola's strong financial performance and positive technical indicators contribute to its robust stock score. The company benefits from effective margin management and a solid balance sheet. The stock's upward price momentum further supports its attractiveness. While valuation is fair, high debt levels and slight revenue declines are areas to watch. Overall, Iberdrola presents a well-rounded investment opportunity with strengths in financial stability and market trends.
Positive Factors
Earnings
Management raises full-year guidance for a second time; expect double-digit growth instead of high single-digit growth previously.
Financial Performance
Strong performance was driven by record-high renewable production and gains from asset sales in Mexico.
Market Position
Iberdrola is well-placed to tap the rising power demand amidst the ongoing electrification push aided by Artificial Intelligence (AI) driven data centre growth in both Europe and US.
Negative Factors
Market Risks
Exposed to fluctuation in wholesale prices that could affect earnings.
Price Target
A price target reduction from €15 to €14.5 reflects higher bond yields and lower power prices, which offsets increased network capital expenditure.
Stock Valuation
The stock has outperformed the European Utilities sector by 17% over the previous year, but is now considered to be running out of runway for further near-term upside.

Iberdrola (IBE) vs. S&P 500 (SPY)

Iberdrola Business Overview & Revenue Model

Company DescriptionIberdrola is one of the largest utilities in the world with electric utility operations in nearly 40 countries. The company has a 53-gigawatt portfolio of hydro, wind, natural gas, coal and nuclear power plants. It is the largest owner of wind farms in the world, representing one third of its portfolio. Although the company has recently developed or acquired distribution and power generation assets in other geographic areas, Spain is still home to around 50% of its power generation capacity.
How the Company Makes MoneyIberdrola makes money through a diversified revenue model centered around its core operations in electricity generation, transmission, and distribution. Key revenue streams include the sale of electricity generated from its renewable and conventional energy plants, fees from grid transmission and distribution services, and electricity retailing to residential, commercial, and industrial customers. The company also earns revenue through strategic partnerships and joint ventures in renewable energy projects globally. Iberdrola's focus on expanding its renewable energy capacity and infrastructure development plays a significant role in its financial performance, supported by favorable regulatory environments and government incentives for green energy initiatives.

Iberdrola Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
49.33B49.34B53.95B39.11B33.15B
Gross Profit
24.17B23.30B20.20B17.06B16.14B
EBIT
8.97B8.97B7.98B7.34B5.54B
EBITDA
14.97B13.92B12.77B11.80B10.12B
Net Income Common Stockholders
4.80B4.80B4.34B3.88B3.61B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.35B5.47B4.99B4.54B3.79B
Total Assets
158.29B150.03B154.67B141.75B122.52B
Total Debt
54.39B61.65B50.42B44.27B40.51B
Net Debt
50.31B58.63B45.81B40.23B37.08B
Total Liabilities
97.24B89.74B96.55B85.63B75.30B
Stockholders Equity
47.13B43.11B41.12B40.48B35.41B
Cash FlowFree Cash Flow
2.05B3.01B3.66B1.19B2.50B
Operating Cash Flow
11.93B12.13B10.44B8.11B8.35B
Investing Cash Flow
-8.40B-9.07B-10.15B-9.49B-6.64B
Financing Cash Flow
-2.27B-2.35B151.00M1.87B-71.00M

Iberdrola Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.79
Price Trends
50DMA
14.49
Positive
100DMA
13.89
Positive
200DMA
13.44
Positive
Market Momentum
MACD
0.37
Negative
RSI
64.84
Neutral
STOCH
95.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IBE, the sentiment is Positive. The current price of 15.79 is above the 20-day moving average (MA) of 15.20, above the 50-day MA of 14.49, and above the 200-day MA of 13.44, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 95.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:IBE.

Iberdrola Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESIBE
77
Outperform
€100.46B18.1210.55%3.00%-9.32%16.37%
63
Neutral
$8.48B11.845.32%4.35%3.04%-11.46%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:IBE
Iberdrola
15.79
4.56
40.67%
GB:0HAC
Actividades de Construccion y Servicios SA
56.66
19.46
52.31%
GB:0N9G
Endesa SA
26.22
9.54
57.19%
GB:0P2N
Ferrovial
43.82
9.35
27.13%

Iberdrola Corporate Events

Iberdrola Announces 2025 Flexible Dividend Schedule
Apr 30, 2025

Iberdrola has announced the estimated schedule for its first edition of the optional dividend system, ‘Iberdrola Flexible Remuneration,’ for the 2025 fiscal year. This system allows shareholders to choose between receiving new shares, selling their allocation rights, or receiving cash dividends. The implementation of this system is pending approval at the General Shareholders’ Meeting, with key dates for execution spanning from May to July 2025. This initiative reflects Iberdrola’s commitment to providing flexible financial options to its shareholders, potentially enhancing shareholder value and engagement.

Iberdrola Releases Q1 2025 Financial Results
Apr 30, 2025

Iberdrola has released its consolidated financial results for the first quarter of 2025, prepared in accordance with International Financial Reporting Standards. The document emphasizes that it is not an offer or invitation to acquire shares and does not include profit forecasts. The release does not cover the financial results of Neoenergia S.A., Iberdrola’s subsidiary, which are available separately.

Iberdrola Sells Minority Stake in German Offshore Wind Farm
Apr 24, 2025

Iberdrola has sold a 49% stake in Windanker GmbH, the company developing the Windanker offshore wind farm in Germany, to Windanker Investco B.V., part of Kansai Electric Power Company. This transaction, completed after obtaining necessary regulatory approvals, reflects Iberdrola’s strategic move to optimize its asset portfolio and strengthen its financial position in the renewable energy sector.

Iberdrola Issues €400 Million Green Bonds to Strengthen Sustainable Financing
Apr 4, 2025

Iberdrola has announced the issuance of green bonds worth 400 million euros, maturing in 2030, linked to the company’s share value. The bonds, which carry a 20% premium over the reference share price, align with the Green Bond Principles of the International Capital Market Association, underscoring Iberdrola’s commitment to sustainable financing. This move is expected to bolster Iberdrola’s position in the green energy sector and provide financial backing for eligible green projects, although it carries potential risks related to market conditions and project impacts.

Iberdrola Announces 2025 General Shareholders’ Meeting
Mar 28, 2025

Iberdrola has announced the call for its 2025 General Shareholders’ Meeting, scheduled for May 30, 2025. The agenda and related documentation are available on the company’s website, ensuring shareholders have access to all necessary information for the meeting.

Iberdrola Announces 2025 General Shareholders’ Meeting with Strategic Proposals
Mar 25, 2025

Iberdrola has announced the call for its 2025 General Shareholders’ Meeting, scheduled for May 30, 2025. The agenda includes discussions on the company’s annual accounts, management reports, and non-financial information for 2024. Key proposals include amendments to the bylaws and regulations of the General Shareholders’ Meeting, approval of dividends, capital increases, and reductions, as well as the re-election of independent directors. These measures reflect Iberdrola’s strategic focus on maintaining robust governance and shareholder engagement, while also enhancing its financial flexibility through capital adjustments and dividend schemes.

Iberdrola Announces Share Buyback Program to Reduce Capital
Mar 25, 2025

Iberdrola, S.A. has announced a share buyback program, approved by its Board of Directors, aimed at reducing the company’s share capital. The program, which is contingent upon approval at the upcoming General Shareholders’ Meeting, will involve the repurchase of shares currently held in treasury, those acquired through the buyback, and shares obtained via certain derivatives. This move is expected to impact the company’s capital structure and could influence shareholder value.

Iberdrola Issues €400 Million Green Bonds to Boost Sustainable Finance
Mar 20, 2025

Iberdrola has announced the issuance of green bonds worth 400 million euros, linked to the company’s share value, with a maturity date in 2030 and a 1.5% annual coupon. This strategic move, guaranteed by Iberdrola, underscores the company’s commitment to sustainable finance and strengthens its position in the renewable energy market, potentially impacting stakeholders by enhancing financial stability and promoting green investments.

Iberdrola Secures UK Approval for Strategic Acquisition
Mar 20, 2025

Iberdrola has received unconditional authorization from the UK’s Competition and Markets Authority for its acquisition of an 88% stake in Electricity North West Limited. This move aligns with Iberdrola’s 2024-2026 Strategic Plan, enhancing its position in the UK energy transmission and distribution market.

Iberdrola Launches €375 Million Green Bond Linked to Share Value
Mar 20, 2025

Iberdrola has announced the launch of a green bond issuance valued at approximately 375 million euros, linked to the company’s share value. This initiative, which is guaranteed by Iberdrola, aims to enhance the company’s financial strategies while reinforcing its commitment to sustainability. The bonds, with a five-year maturity, will be traded on the Frankfurt Stock Exchange, and the issuance includes mechanisms to manage financial exposure through cash-settled call options. This move is expected to strengthen Iberdrola’s market position and provide stakeholders with a sustainable investment opportunity.

Iberdrola’s 2024 Governance Report Highlights Accessibility
Feb 28, 2025

Iberdrola has released its Annual Corporate Governance Report for the fiscal year 2024, emphasizing accessibility and inclusivity. The report is designed to be fully accessible to all individuals, regardless of their abilities or technology used, reflecting Iberdrola’s commitment to ensuring understandable and usable information for all stakeholders.

Iberdrola’s 2024 Executive Remuneration Report Highlights Accessibility
Feb 28, 2025

Iberdrola has released its Annual Report on the remuneration of directors and executives for the fiscal year 2024, emphasizing accessibility for all users. The report includes measures to ensure that the information is clear, readable, and compatible with assistive technologies, reflecting Iberdrola’s commitment to inclusivity and transparency in its operations.

Iberdrola Releases 2024 Financial Results
Feb 27, 2025

Iberdrola, S.A. has released its consolidated financial results for the fiscal year 2024, prepared in accordance with International Financial Reporting Standards. The document emphasizes that the information is solely for the presentation of results and does not constitute an offer or solicitation for securities. The release does not include a profit forecast or future performance implications, and it highlights the regulatory requirements for offering shares in different jurisdictions, including the United States and Brazil.

Iberdrola to Present Fiscal Year 2024 Results in February 2025
Feb 13, 2025

Iberdrola announces the presentation of its Fiscal Year 2024 results to the C.N.M.V., scheduled for February 27, 2025, before the market opens. This event will offer stakeholders insights into the company’s financial performance and future outlook, potentially affecting market perceptions and stakeholder decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.