Iberdrola, S.A. (IBE.MC) stock analysis
In our weekly check, Iberdrola, S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.
About Iberdrola, S.A.
Iberdrola, S.A. is an Utilities company (Diversified Utilities) based in Spain, listed on BME as IBE.MC.
What our checks show for IBE.MC
Red flags
- Revenue fell 6.5% a year over the last 3 years.
- The stock has fallen as much as 77% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 8.4 years.
Warning signs
- Net debt is 3.6x a year of EBITDA (debt/equity 1.29). That limits room in a downturn and raises refinancing risk.
- Operating profit covers interest only 2.7 times: a weak year could make the payments hard.
- Analysts expect only about 4% a year of growth in revenue.
- Free cash flow is only 2.7% of revenue.
- Return on capital (ROCE) is only 7.1%.
Strengths
- The net margin rose by 4.3 points over 5 years, to 14.3%.
- The gross margin is 54.6% and has risen by 10.9 points: pricing power is holding.
- Operating cash flow is 1.4x net profit: the profit arrives as real cash.
- Earnings per share grew 13.7% a year over the last 3 years.
- Net profit grew 13.1% a year over the last 3 years.
- A large company: market value $164 billion.
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Questions
What grade does Iberdrola, S.A. (IBE.MC) have?
In our weekly check, Iberdrola, S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of IBE.MC stock?
This week's biggest flags for Iberdrola, S.A.: Weak revenue growth, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.
What does Iberdrola, S.A. do?
Iberdrola, S.A. is an Utilities company (Diversified Utilities) based in Spain, listed on BME as IBE.MC.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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