Fact based stock research
Iberdrola (BME:IBE)

ES0144580Y14

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Iberdrola stock research in summary

iberdrola.com

ANALYSIS: With an Obermatt Combined Rank of 46 (worse than 54% compared with investment alternatives), Iberdrola (Electric Utilities, Spain) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Iberdrola are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives) and show below-average growth (Growth Rank of 46) but are safely financed (Safety Rank of 58), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 46, is a hold recommendation based on Iberdrola's financial characteristics. As the company Iberdrola's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 38) and low growth (Obermatt Growth Rank of 46), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 58) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	38
Growth Rank	46
Safety Rank	58
Combined Rank	46

Country	Spain
Industry	Electric Utilities
Index	EURO STOXX 50, IBEX 35, Low Emissions, Human Rights, Nuclear
Size class	Large

This stock has achievements: Insight 2022-11-03, Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Iberdrola

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	71	58	39	38
GROWTH
GROWTH	67	85	81	46
SAFETY
SAFETY	62	59	46	58
SENTIMENT
SENTIMENT	77	74	59	^new
360° VIEW
360° VIEW	89	88	60	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Iberdrola is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	71	58	39	38
GROWTH
GROWTH	67	85	81	46
SAFETY
SAFETY	62	59	46	58
COMBINED
COMBINED	78	88	60	46

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Iberdrola the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Iberdrola shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Iberdrola. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 53% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 43 which means that the stock price compared with what market professionals expect for future profits is higher than 57% of comparable companies, indicating a low value concerning Iberdrola's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 44 which means that the stock price compared with what market professionals expect for future profit levels is higher than 56% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 is also low. Compared with invested capital, the stock price is higher than for 66% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 38, is a hold recommendation based on Iberdrola's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Iberdrola? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Iberdrola only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	55	50	45	43
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	62	44	35	44
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	53	31	34
DIVIDEND YIELD
DIVIDEND YIELD	59	60	62	53
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	71	58	39	38

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Iberdrola; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 46 (better than 46% compared with alternatives), Iberdrola shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Iberdrola. Profit Growth has a rank of 56, which means that currently professionals expect the company to grow its profits more than 56% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 76 (above 76% of alternative investments). But Sales Growth has a below the median rank of 49, which means that, currently, professionals expect the company to grow less than 51% of its competitors, and Capital Growth also has a lower rank of 16. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 46, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Iberdrola. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	63	37	56	49
PROFIT GROWTH
PROFIT GROWTH	52	55	83	56
CAPITAL GROWTH
CAPITAL GROWTH	88	93	35	16
STOCK RETURNS
STOCK RETURNS	23	65	83	76
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67	85	81	46

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Iberdrola.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 58 (better than 58% compared with alternatives), the company Iberdrola has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Iberdrola is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Iberdrola. Leverage is at a rank of 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Liquidity is also good at a rank of 70, meaning the company generates more profit to service its debt than 70% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 24, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 58 (better than 58% compared with alternatives), Iberdrola has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Iberdrola. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Iberdrola and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	74	74	66	63
REFINANCING
REFINANCING	31	27	27	24
LIQUIDITY
LIQUIDITY	61	51	51	70
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	62	59	46	58

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Iberdrola and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	43	29	^new
OPINIONS CHANGE
OPINIONS CHANGE	52	53	52	^new
PRO HOLDINGS
PRO HOLDINGS	95	94	97	^new
MARKET PULSE
MARKET PULSE	20	53	54	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	77	74	59	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Iberdrola.
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