1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
We maintain our EUR 10.60 fair value estimate after no-moat Iberdrola released solid first-half results and confirmed its 2022 guidance. This good set of results reflects the favorable positioning of the business mix against high inflation. However, this enviable feature is shared by most other European diversified utilities including Enel and Engie, which are more undervalued than Iberdrola.
Iberdrola is one of the largest utilities in the world with electric utility operations in nearly 40 countries. The company has a 52 gigawatt portfolio of hydro, wind, natural gas, and nuclear power plants. It is the largest owner of wind farms in the world, representing nearly 40% of its portfolio. Although the company has recently developed or acquired distribution and power generation assets in other geographic areas, Spain is still home to around 50% of its power generation capacity. Iberdrola also owns and operates electricity and distribution networks in Spain, the U.K., Brazil, and the U.S.
