We confirm our EUR 12 fair value estimate after no-moat Iberdrola released first-quarter results boosted by the sale of a good chunk of Mexican assets and raised its 2024 net profit guidance. Shares are in 3-star territory. The current dividend yield is 4.8%, in line with the sector's median. Still, the company has a more attractive earnings and dividend outlook than most peers.
Iberdrola has one of the best records among European diversified utilities. Its early entry into onshore wind enabled the group to become the world's largest operator/owner of wind farms.
Spain is the Western European country with the harshest regulation for utilities.
|
Metric
|
IBE
|
EDP
|
NEE
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.76 | 19.30 | 20.37 |
Price/Book Value | 1.66 | 1.29 | 2.80 |
Price/Sales | 1.51 | 0.91 | 4.99 |
Price/Cash Flow | 7.27 | 4.59 | 10.13 |
|
Metric
|
IBE
|
EDP
|
NEE
|
|---|---|---|---|
Quick Ratio | 0.60 | 0.66 | 0.31 |
Current Ratio | 0.77 | 0.91 | 0.55 |
Interest Coverage | 4.98 | 2.30 | 3.19 |
|
Metric
|
IBE
|
EDP
|
NEE
|
|---|---|---|---|
Return on Assets (Normalized) | 4.79% | 2.23% | 3.73% |
Return on Equity (Normalized) | 14.40% | 12.02% | 13.95% |
Return on Invested Capital (Normalized) | 7.51% | 4.92% | 6.63% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
IBDSF
| Iberdrola SA | — | Bnyl | $77.4 Bil | |
IBDRY
| Iberdrola SA ADR | JNF | Ggvp | $76.8 Bil | |
ESOCF
| Enel SpA | Trxgzjqk | Ltp | $66.2 Bil | |
ENLAY
| Enel SpA ADR | Xckfmggz | Chgh | $66.2 Bil | |
SRE
| Sempra | Shfyftbs | Hlbcr | $45.2 Bil | |
ENGIY
| Engie SA ADR | — | Ycs | $41.3 Bil | |
ENGQF
| Engie SA | — | Bqvcf | $40.9 Bil | |
ENAKF
| E.ON SE | — | Ccbyx | $34.8 Bil | |
EONGY
| E.ON SE ADR | Pcfwprrvs | Gwlr | $34.7 Bil | |
AES
| The AES Corp | Ypwcrmnhr | Qqld | $11.9 Bil |
