NEXTERA ENERGY PARTNERS LP (NEP)
US65341B1061 - Common Stock
We assign a fundamental rating of 3 out of 10 to NEP. NEP was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. NEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEP is quite expensive at the moment. It does show a decent growth rate. NEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NEP was profitable.
NEP had a positive operating cash flow in the past year.
In multiple years NEP reported negative net income over the last 5 years.
NEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEP's Return On Assets of 0.89% is fine compared to the rest of the industry. NEP outperforms 71.43% of its industry peers.
NEP has a better Return On Equity (5.60%) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 5.6% | ||
| ROIC | N/A |
ROA(3y)1.23%
ROA(5y)0.5%
ROE(3y)8.18%
ROE(5y)3.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 18.55%, NEP belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Profit Margin of NEP has declined.
The Operating Margin and Gross Margin are not available for NEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 18.55% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-3.05%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NEP does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for NEP has been increased compared to 1 year ago.
The number of shares outstanding for NEP has been increased compared to 5 years ago.
Compared to 1 year ago, NEP has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 1.38 is on the high side and indicates that NEP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.38, NEP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.08%
2.3 Liquidity
A Current Ratio of 1.33 indicates that NEP should not have too much problems paying its short term obligations.
NEP has a Current ratio (1.33) which is comparable to the rest of the industry.
NEP has a Quick Ratio of 1.28. This is a normal value and indicates that NEP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NEP (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for NEP have decreased strongly by -62.37% in the last year.
Measured over the past years, NEP shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.29% on average per year.
The Revenue for NEP has decreased by -10.98% in the past year. This is quite bad
The Revenue has been growing slightly by 6.93% on average over the past years.
EPS 1Y (TTM)-62.37%
EPS 3YN/A
EPS 5Y25.29%
EPS growth Q2Q200%
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y5.54%
Revenue growth 5Y6.93%
Revenue growth Q2Q-77.44%
3.2 Future
NEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.22% yearly.
Based on estimates for the next years, NEP will show a small growth in Revenue. The Revenue will grow by 3.20% on average per year.
EPS Next Y-50.06%
EPS Next 2Y-25.5%
EPS Next 3Y-25.88%
EPS Next 5Y14.22%
Revenue Next Year-2.6%
Revenue Next 2Y1.16%
Revenue Next 3Y3.27%
Revenue Next 5Y3.2%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.51, NEP is valued correctly.
80.95% of the companies in the same industry are more expensive than NEP, based on the Price/Earnings ratio.
NEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 27.05, NEP can be considered very expensive at the moment.
71.43% of the companies in the same industry are more expensive than NEP, based on the Price/Forward Earnings ratio.
NEP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
A cheap valuation may be justified as NEP's earnings are expected to decrease with -25.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-25.5%
EPS Next 3Y-25.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.54%, NEP is a good candidate for dividend investing.
NEP's Dividend Yield is rather good when compared to the industry average which is at 6.06. NEP pays more dividend than 95.24% of the companies in the same industry.
NEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.54% |
5.2 History
The dividend of NEP is nicely growing with an annual growth rate of 8.32%!
NEP has been paying a dividend for at least 10 years, so it has a reliable track record.
As NEP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.32%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
370.50% of the earnings are spent on dividend by NEP. This is not a sustainable payout ratio.
The dividend of NEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP370.5%
EPS Next 2Y-25.5%
EPS Next 3Y-25.88%
NEXTERA ENERGY PARTNERS LP
NYSE:NEP (4/23/2024, 7:15:22 PM)
After market: 28.97 +0.2 (+0.7%)28.77
+1.31 (+4.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 27.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 5.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 18.55% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-62.37%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-50.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.98%
Revenue growth 3Y5.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y