Rankings Utilities & power Iberdrola
Iberdrola
62
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history and peers−8
- FCF yield−4
- Capital allocation−3
Strengths
- Regulated network growth+2
- Financial strength+1
How the score is built
From 100 to 62, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 22.23 EUR
- Median analyst target
- 21.05 EUR
- Upside to median
- −5.3%
- Analysts
- 24
- Target range
- 18.00 – 25.00 EUR
- 52-week change
- +26%
- P/E (trailing)
- 22.8
- Forward P/E
- 20.4
- PEG
- 2.68
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−6 of −30
- −2ROICROIC 5.1% vs a WACC of 5.9% – below the cost of capital – even though ROCE has improved from 6.0% (2021) to 7.2% TTM and ROE from 8.5% to 10.0%.
- −1Quality of growthReported net income +22% in H1 2026 is mainly due to the Mexico gain of 953 m €; adjusted +8%, adjusted EBITDA +7%, while adjusted FFO fell 1.4% and revenue rose only 1.7%. FCF fell 36% TTM to 3.0 bn €.
- −3Capital allocationCapital increase of €5bn in July 2025 (share count +2.4% in a year), at the same time as buybacks of €3.4bn and cash dividend of €1.1bn TTM – in total €4.5bn vs FCF of €3.0bn; net borrowing +€2.5bn TTM.
Price
Today's multiples against the company's own history and its peers. · 2 findings−12 of −35
- −8Multiples vs own history and peersForward P/E 19.4 vs 15.3–19.1 in 2021–2025 (above the top), P/B 2.11 vs 1.15–1.92 and EV/EBITDA 13.4 vs 10.3–12.6 – all three above its own history after +28% in 52 weeks. Clearly more expensive than Enel (forward P/E 11.8), Engie (11.2) and E.ON (14.7) with EPS growth of about 7–8%.
- −4FCF yieldFCF yield 2.3% (FCF after leases €2.8bn vs market cap €132bn), P/FCF 44 vs 17–34 in 2022–2025 and EV/FCF 66; analysts expect negative FCF in 2026 as investments rise 25% to €7bn in H1.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−5 of −35
- −2US policy (offshore wind)Vineyard Wind 1 (50% Avangrid) was halted by the US Department of the Interior in December 2025 and resumed only via a court injunction, and the department wants to revoke the permit for New England Wind (up to 2,600 MW).
- −2DebtAdjusted net debt €54.0bn at June 2026 (+€3.8bn in half a year due to investments and currency), net debt/EBITDA 3.8x, current ratio 0.75 and interest coverage 4.4x; the purchase of 80% of Finnish Caruna (€2.0bn, EV about €5bn) closes around the turn of the year.
- −1Spanish grid regulationThe CNMC set the return on power grids 2026–2031 at 6.58% vs the industry's demand of 7.5%, and the distributors' total remuneration rises only 2.5% in 2026; the industry (aelēc) calls it an unprecedented cut in recognised operating costs.
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Regulated network growthRAB rose 11% to 55 bn € (transmission +30%), net investments +42% to 4.4 bn € in H1, over 70% of investment in the UK, USA and Brazil; guidance for 2026 adjusted net income (>8% growth, >6.7 bn €) confirmed.
- +1Financial strengthLiquidity of €21.5bn (22 months of funding needs covered) and FFO/net debt of 22.4% despite the large investment programme.
Caveats
What the score does not capture, or where the data is weak.
Stockanalysis' TTM EPS (€1.00, trailing P/E 24.9) is reported and lifted by a gain of €953m on the sale of the Mexico business as well as UK tax credits (€182m); adjusted net profit rose 8% in H1 vs. 22% reported. T2 is therefore based on forward P/E (adjusted) and EV/EBITDA. Stockanalysis' +2.4% in share count was checked against the cash flow: the €5bn capital increase in July 2025 (issuance €5.16bn TTM) is partly offset by buybacks of €3.4bn, which mainly neutralise the scrip dividend (Retribución Flexible); the cash dividend is therefore only €1.1bn in the cash flow, while the company itself reports the distribution at €4.5bn. Analysts' FCF estimate of −€8.6bn for 2026 probably includes acquisitions (Caruna) and is used only as support. Price targets (median €20.00) are below the price after +28% over 52 weeks. Q3 results due 21/10-2026. Credit rating (BBB+/Baa1), insider trading and Brazil currency have not been investigated in depth; the Caruna purchase (80% for €2.0bn, EV about €5bn) is counted only under debt.
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