| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.78 | 9 |
| Intrinsic value (DCF) | 7.32 | -62 |
| Graham-Dodd Method | 7.62 | -60 |
| Graham Formula | n/a |
Iberdrola, S.A. (IBE1.DE) is a global leader in renewable energy and utilities, headquartered in Bilbao, Spain. Founded in 1840, the company operates across electricity generation, transmission, distribution, and supply, with a strong focus on sustainability. Iberdrola boasts an installed capacity of 58,320 MW, with over 65% derived from renewable sources, including wind, hydro, solar, and biomass. The company serves 36.11 million customers and manages 1.2 million kilometers of transmission and distribution lines. Iberdrola is at the forefront of the energy transition, investing heavily in green hydrogen, energy storage, and electric vehicle infrastructure. With operations spanning Spain, the UK, the US, Brazil, and other markets, Iberdrola is a key player in the global shift toward clean energy. Its diversified portfolio and commitment to innovation position it as a resilient and forward-looking utility giant.
Iberdrola presents a compelling investment case due to its dominant position in renewable energy, stable cash flows from regulated assets, and strong growth prospects in green hydrogen and electrification. The company's €102.6B market cap and €44.7B revenue reflect its scale, while its 0.664 beta indicates lower volatility compared to the broader market. However, high total debt (€57.7B) and significant capital expenditures (€8.4B) pose risks, particularly in a rising interest rate environment. The dividend yield (~3.8%) is attractive, but investors should monitor debt sustainability and regulatory pressures in key markets like Spain and the UK. Iberdrola's renewable focus aligns with global decarbonization trends, making it a long-term play on the energy transition.
Iberdrola's competitive advantage stems from its early-mover status in renewables, diversified geographic footprint, and vertically integrated business model. The company's 38,138 MW of renewable capacity (65% of total) gives it a cost and sustainability edge over peers reliant on fossil fuels. Its heavy investments in offshore wind (e.g., UK's East Anglia Hub) and green hydrogen projects further differentiate it. However, competition is intensifying as utilities like Enel and NextEra accelerate their renewable transitions. Iberdrola's regulated asset base (distribution networks in Spain, UK, and Brazil) provides stable cash flows but exposes it to political risks, such as Spain's windfall taxes. The company's scale allows it to secure financing for large projects, but its high leverage could limit flexibility compared to less-indebted rivals. In the US, where Iberdrola operates via Avangrid, it faces stiff competition from NextEra and Dominion in renewable development.