Iberdrola stock: fundamental analysis
Stocks · IBE · Utilities
Iberdrola, S.A. engages in the generation, production, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 20.29 EUR
- Market cap: 135.4B EUR
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 10.0%: a decent return, not an exceptional one. Out of every 100 in sales, 15.9 end up as profit.
Financial health
Net debt/EBITDA of 3.8x: moderate leverage, manageable for stable businesses such as utilities or infrastructure.
Growth
Revenue is growing 9.8% year on year: a solid pace. Earnings are up 68.3%.
Valuation
It trades at a P/E of 25.4, above the 16.2 median of the utilities companies we track. On expected earnings the P/E falls to 18.6: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.
Dividend
Dividend yield of 3.3% (0.68 EUR per share per year) with a payout ratio of 84.9%.
Tools
All metrics
| Iberdrola | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 10.0% | 12.7% |
| ROA | 3.8% | 3.8% |
| Gross margin | 53.9% | 56.8% |
| Operating margin | 24.5% | 24.5% |
| Net margin | 15.9% | 15.9% |
| Financial health | ||
| Net debt/EBITDA | 3.8x | 4.6x |
| Debt/equity | 1.0x | 1.2x |
| Current ratio | 0.8x | 0.9x |
| Growth | ||
| Revenue growth | 9.8% | 9.8% |
| Earnings growth | 68.3% | 67.8% |
| Valuation | ||
| P/E ratio | 25.4x | 16.2x |
| Forward P/E | 18.6x | 15.7x |
| EV/EBITDA | 13.8x | 12.2x |
| Price/book | 2.6x | 2.6x |
| FCF yield | 1.9% | 3.9% |
| Dividend | ||
| Dividend yield | 3.3% | 4.5% |
| Payout ratio | 84.9% | 83.3% |
| Beta (volatility) | 0.6x | 0.5x |
Frequently asked questions
What is Iberdrola's P/E ratio?
Iberdrola's P/E is 25.4 based on trailing 12-month earnings and 18.6 on expected earnings. The median for its sector among the companies we track is 16.2. Data as of September 18, 2026.
What dividend does Iberdrola pay?
Dividend yield of 3.3% (0.68 EUR per share per year) with a payout ratio of 84.9%.
Is Iberdrola stock expensive?
It trades at a P/E of 25.4, above the 16.2 median of the utilities companies we track. On expected earnings the P/E falls to 18.6: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Iberdrola have a lot of debt?
Net debt/EBITDA of 3.8x: moderate leverage, manageable for stable businesses such as utilities or infrastructure.
What is Iberdrola's market cap?
Iberdrola has a market cap of 135.4B EUR and its shares trade at 20.29 EUR, with a 52-week range of 15.46 EUR to 22.08 EUR (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.