History, recent context and fundamental

Iberdrola is a Spanish company dedicated to the production, distribution and commercialization of energy. It is the first largest group in the Spanish electricity sector and the fourth in the world .
Its origin comes from the United States where several entrepreneurs created the company Hartford City Light Comapny. This company would be copied from the United States in Bilbao half a century later when in 1901 several Basque engineers founded Bilbao Hidroeléctrica Iberica. In Madrid and Valencia, Spanish Hydroelectric would be created and 10 years later Saltos del Duero would be created. In 1940 the two companies would join to create Iberduero, germ of the current Iberdrola. Since 1940 the companies in this sector would have to make a great effort to re-activate the Spanish industrial sector, there would be many reforms and repairs to be made. In 1955, Hidroeléctrica Española and Iberduero merged giving rise to Iberdrola.

At the end of the 1980s, like other companies in the Spanish sector, it would begin to diversify and internationalize, starting in South America and focusing on the largest countries such as Mexico and Brazil. At the beginning of the 21st century, it would begin to take a big position in the US market where it currently operates under the name of Avangrid. Which mainly develops renewable energy and competes directly with Gamesa that is very present in that country.

Like companies like Endesa and Gas Natural, now Naturgy, it is quite criticized for abusive practices in the Spanish market. Between the three, 90% of the electricity and natural gas contracts are distributed. He has also had several cases with the Spanish and European courts for this cause, being sentenced in 2015 to pay 25 million euros, a ridiculous compared to the money he has pocketed with their practices .
Here I present the data of fundamentals that I think are most important:

• Capitalization: The largest electricity company in Spain having overtaken Gas Natural and Endesa.
• Net Profit: On the rise, rising by 33% in just 5 years.
• EBDITA
• Debt/Ebdita: The debt is very high and is one of the problems to be solved by Iberdrola, however, the number of projects it has is very large.
• PER:One of the best compared to other companies in the sector.

Of the table of fundamentals it is seen as unlike its rivals, Iberdrola has been improving year after year in everything. His rise has been impeccable with an EBDITA increase of almost 30% in just 5 years. In addition, the dividend is one of the most generous of the IBEX as that of its rivals. The debt is quite large, almost representing the total capitalization. However, the net benefit is very high and the shares are quoted at a cheaper price than their rivals, since the PER is around 15 and has barely risen these years.

Technical analysis

If we look at the long-term chart we see a fairly high rise since 2012. This bounce left an HCHi structure in monthly candles in 2016, and continued to form an ascending lateral channel pivoting between € 5.5 and € 7 , € 5. This rise since the rebound of 2012 has been huge, reaching 150% revaluation. And is that Iberdrola part of the problem of the Spanish crisis quite affected the problem of renewables as Gamesa. This last company came to be worth € 1 and recovered to almost € 20.

Since the end of 2018 it has been on a very steep rise due to the good results and it is very likely that it will be correct soon. However, from my point of view Iberdrola could start to form a side channel with a higher upload speed, which is the one that targets € 10. Also together with Acciona is one of the best valued by analysts .



In the short term in view of the MACD indicator and of a possible HCHi formation in daily candles could give to glimpse that it wants to break the resistance of the channel that it has in the 7.75 € however I see it unlikely. He will go to € 7.3 and try again to test the resistance . The strategy in the value would be to try to look for a drop point to be able to enter or overweight the value. This will already occur as elections are coming and there may be some day that the IBEX will suffer a severe correction and it will be a good time to enter.