Operating Margin

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Price: 86.75 USD 0.85% Market Closed

Market Cap: $138B

19.4%

Declining

by 0.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19.4%

Operating Income

€8.8B

Revenue

€45.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19.4%

Operating Income

$8.8B

Revenue

€45.5B

Peer Comparison

Country	Company	Market Cap	Operating Margin
ES	Iberdrola SA MAD:IBE	117.7B EUR	Loading...
UK	National Grid PLC LSE:NG	59.1B GBP	Loading...
FR	Engie SA PAR:ENGI	58.5B EUR	Loading...
DE	RWE AG XETRA:RWE	37.4B EUR	Loading...
US	Consolidated Edison Inc NYSE:ED	37.3B USD	Loading...
US	Nextera Energy Inc NYSE:NEE	176.1B USD	Loading...
IT	Enel SpA MIL:ENEL	91.2B EUR	Loading...
US	Southern Co NYSE:SO	95.9B USD	Loading...
US	Duke Energy Corp NYSE:DUK	91B USD	Loading...
US	Constellation Energy Corp NASDAQ:CEG	90.3B USD	Loading...
US	American Electric Power Company Inc NASDAQ:AEP	62B USD	Loading...

Market Distribution

Min	-2 951.2%
30th Percentile	4.9%
Median	12%
70th Percentile	19.6%
Max	143.7%

Other Profitability Ratios

Iberdrola SA
Glance View

Economic Moat

None

Market Cap

138B USD

Industry

Utilities

In the green pastures of Spain, Iberdrola SA emerges as a trailblazer in the world's energy landscape. Originally founded at the dawn of the 20th century, Iberdrola has transformed itself from a traditional utility company into a global leader in renewable energies. Anchored firmly in its commitment to sustainability, the company operates with a diversified portfolio that focuses primarily on wind, hydroelectric, and solar power. By harnessing the forces of nature, Iberdrola generates a substantial portion of its revenue through the production and distribution of electricity to millions of homes across the globe. This strategic pivot not only solidifies Iberdrola’s role as a front-runner in the renewable sector but also aligns with the growing global demand for cleaner energy solutions. Central to Iberdrola’s success is its vertically integrated business model, which allows it to control the full spectrum of its operations—from generation to distribution and retail of electricity. This model ensures a steady stream of income by enabling the company to maintain efficiency and manage costs across its extensive infrastructure. Iberdrola’s international footprint extends beyond its Spanish roots to significant operations in the United States, United Kingdom, and Latin America. Through its diverse geographical presence, Iberdrola capitalizes on varying regulatory landscapes and market dynamics, making it resilient to localized economic fluctuations. By focusing on continuous innovation and sustainable growth, Iberdrola not only fuels its own expansion but also sets a benchmark for the future of the global energy industry.

View IBDRY Analysis

IBDRY Intrinsic Value

Overvaluation 20%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Iberdrola SA
OTC:IBDRY

Peer Comparison

Market Distribution

Other Profitability Ratios

Iberdrola SA
Glance View

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Iberdrola SA OTC:IBDRY