NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEP - US65341B1061 - Common Stock
10.54 USD
+0.1 (+0.96%)
10.47 USD
-0.07 (-0.66%)
We assign a fundamental rating of 4 out of 10 to NEP. NEP was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. NEP may be in some trouble as it scores bad on both profitability and health. NEP may be a bit undervalued, certainly considering the very reasonable score on growth Finally NEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- NEP had positive earnings in the past year.
- In the past year NEP had a positive cash flow from operations.
- In multiple years NEP reported negative net income over the last 5 years.
- Each year in the past 5 years NEP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.04%, NEP is doing worse than 60.00% of the companies in the same industry.
- With a Return On Equity value of -0.28%, NEP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 0.42%, NEP is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.28% | ||
| ROIC | 0.42% |
ROA(3y)0.97%
ROA(5y)0.64%
ROE(3y)6.55%
ROE(5y)4.38%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Operating Margin value of 8.29%, NEP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of NEP has declined.
- The Profit Margin and Gross Margin are not available for NEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.29% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-30.82%
OM growth 5Y-21.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEP is destroying value.
- The number of shares outstanding for NEP remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, NEP has more shares outstanding
- NEP has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of NEP is 9.51, which is on the high side as it means it would take NEP, 9.51 years of fcf income to pay off all of its debts.
- NEP has a Debt to FCF ratio of 9.51. This is amongst the best in the industry. NEP outperforms 90.00% of its industry peers.
- NEP has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.43, NEP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 9.51 | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC5.02%
2.3 Liquidity
- NEP has a Current Ratio of 0.79. This is a bad value and indicates that NEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.79, NEP is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.69 indicates that NEP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.69, NEP is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- NEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 165.26%, which is quite impressive.
- NEP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.88% yearly.
- Looking at the last year, NEP shows a quite strong growth in Revenue. The Revenue has grown by 14.10% in the last year.
- The Revenue has been growing slightly by 7.54% on average over the past years.
EPS 1Y (TTM)165.26%
EPS 3Y45.88%
EPS 5YN/A
EPS Q2Q%289.17%
Revenue 1Y (TTM)14.1%
Revenue growth 3Y7.79%
Revenue growth 5Y7.54%
Sales Q2Q%26.72%
3.2 Future
- NEP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -38.06% yearly.
- The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y-57.38%
EPS Next 2Y-36.56%
EPS Next 3Y-14.63%
EPS Next 5Y-38.06%
Revenue Next Year6.02%
Revenue Next 2Y2.7%
Revenue Next 3Y2.56%
Revenue Next 5Y4.59%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- NEP is valuated cheaply with a Price/Earnings ratio of 1.87.
- Based on the Price/Earnings ratio, NEP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. NEP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 4.38 indicates a rather cheap valuation of NEP.
- NEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEP is cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
- NEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEP is cheaper than 95.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NEP is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.76 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
- A cheap valuation may be justified as NEP's earnings are expected to decrease with -14.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.56%
EPS Next 3Y-14.63%
5. Dividend
5.1 Amount
- NEP has a Yearly Dividend Yield of 34.11%, which is a nice return.
- In the last 3 months the price of NEP has falen by -45.25%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- NEP's Dividend Yield is rather good when compared to the industry average which is at 1.36. NEP pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, NEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 34.11% |
5.2 History
- On average, the dividend of NEP grows each year by 6.82%, which is quite nice.
- NEP has been paying a dividend for at least 10 years, so it has a reliable track record.
- NEP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.82%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- The earnings of NEP are negative and hence is the payout ratio. NEP will probably not be able to sustain this dividend level.
DP-9066.67%
EPS Next 2Y-36.56%
EPS Next 3Y-14.63%
NEXTERA ENERGY PARTNERS LP / NEP FAQ
What is the ChartMill fundamental rating of NEXTERA ENERGY PARTNERS LP (NEP) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NEP.
Can you provide the valuation status for NEXTERA ENERGY PARTNERS LP?
ChartMill assigns a valuation rating of 7 / 10 to NEXTERA ENERGY PARTNERS LP (NEP). This can be considered as Undervalued.
Can you provide the profitability details for NEXTERA ENERGY PARTNERS LP?
NEXTERA ENERGY PARTNERS LP (NEP) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for NEP stock?
The Earnings per Share (EPS) of NEXTERA ENERGY PARTNERS LP (NEP) is expected to decline by -57.38% in the next year.
How sustainable is the dividend of NEXTERA ENERGY PARTNERS LP (NEP) stock?
The dividend rating of NEXTERA ENERGY PARTNERS LP (NEP) is 7 / 10 and the dividend payout ratio is -9066.67%.