Iberdrola (Germany) Buy Hold or Sell Recommendation

IBE1 Stock  EUR 13.45  0.15  1.10%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Iberdrola SA is 'Strong Sell'. Macroaxis provides Iberdrola buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding IBE1 positions.
  
Check out Iberdrola Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Iberdrola and provide practical buy, sell, or hold advice based on investors' constraints. Iberdrola SA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Iberdrola Buy or Sell Advice

The Iberdrola recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Iberdrola SA. Macroaxis does not own or have any residual interests in Iberdrola SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Iberdrola's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell IberdrolaBuy Iberdrola
Strong Sell

Market Performance

WeakDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost neglects market trendsDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Iberdrola SA has a Mean Deviation of 1.07, Semi Deviation of 1.56, Standard Deviation of 1.38, Variance of 1.9, Downside Variance of 2.56 and Semi Variance of 2.43
Our advice tool can cross-verify current analyst consensus on Iberdrola and to analyze the company potential to grow in the current economic cycle. To make sure Iberdrola SA is not overpriced, please check out all Iberdrola fundamentals, including its shares outstanding, shares owned by institutions, and the relationship between the current valuation and shares owned by insiders .

Iberdrola Trading Alerts and Improvement Suggestions

Iberdrola SA has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Iberdrola SA has accumulated 36.3 B in total debt with debt to equity ratio (D/E) of 86.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Iberdrola SA has a current ratio of 0.71, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Iberdrola until it has trouble settling it off, either with new capital or with free cash flow. So, Iberdrola's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Iberdrola SA sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Iberdrola to invest in growth at high rates of return. When we think about Iberdrola's use of debt, we should always consider it together with cash and equity.

Iberdrola Returns Distribution Density

The distribution of Iberdrola's historical returns is an attempt to chart the uncertainty of Iberdrola's future price movements. The chart of the probability distribution of Iberdrola daily returns describes the distribution of returns around its average expected value. We use Iberdrola SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Iberdrola returns is essential to provide solid investment advice for Iberdrola.
Mean Return
0.04
Value At Risk
-2.26
Potential Upside
2.00
Standard Deviation
1.38
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Iberdrola historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Iberdrola Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Iberdrola or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Iberdrola's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Iberdrola stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.05
β
Beta against Dow Jones-0.19
σ
Overall volatility
1.38
Ir
Information ratio -0.08

Iberdrola Volatility Alert

Iberdrola SA has relatively low volatility with skewness of -0.43 and kurtosis of 1.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Iberdrola's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Iberdrola's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Iberdrola Fundamentals Vs Peers

Comparing Iberdrola's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Iberdrola's direct or indirect competition across all of the common fundamentals between Iberdrola and the related equities. This way, we can detect undervalued stocks with similar characteristics as Iberdrola or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Iberdrola's fundamental indicators could also be used in its relative valuation, which is a method of valuing Iberdrola by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Iberdrola to competition
FundamentalsIberdrolaPeer Average
Return On Equity0.0898-0.31
Return On Asset0.0336-0.14
Profit Margin0.08 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation109.11 B16.62 B
Shares Outstanding6.18 B571.82 M
Shares Owned By Insiders0.23 %10.09 %
Shares Owned By Institutions44.17 %39.21 %
Price To Earning16.46 X28.72 X
Price To Book1.25 X9.51 X
Price To Sales1.37 X11.42 X
Revenue53.95 B9.43 B
Gross Profit21.05 B27.38 B
EBITDA13.48 B3.9 B
Net Income4.34 B570.98 M
Cash And Equivalents2.4 B2.7 B
Cash Per Share0.38 X5.01 X
Total Debt36.3 B5.32 B
Debt To Equity86.00 %48.70 %
Current Ratio0.72 X2.16 X
Book Value Per Share6.07 X1.93 K
Cash Flow From Operations10.44 B971.22 M
Earnings Per Share0.69 X3.12 X
Price To Earnings To Growth2.24 X4.89 X
Target Price6.03
Number Of Employees40.09 K18.84 K
Beta0.53-0.15
Market Capitalization66.03 B19.03 B
Total Asset154.67 B29.47 B
Z Score0.68.72
Annual Yield0.04 %
Five Year Return3.51 %
Net Asset154.67 B

Iberdrola Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Iberdrola . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Iberdrola Buy or Sell Advice

When is the right time to buy or sell Iberdrola SA? Buying financial instruments such as Iberdrola Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Transportation
Transportation Theme
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Other Information on Investing in Iberdrola Stock

Iberdrola financial ratios help investors to determine whether Iberdrola Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Iberdrola with respect to the benefits of owning Iberdrola security.