NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
NYSE:NEP - New York Stock Exchange, Inc. - US65341B1061 - Common Stock - Currency: USD
Taking everything into account, NEP scores 4 out of 10 in our fundamental rating. NEP was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and financial health of NEP have multiple concerns. NEP may be a bit undervalued, certainly considering the very reasonable score on growth 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.
The reported net income has been mixed in the past 5 years: NEP reported negative net income in multiple years.
Each year in the past 5 years NEP had a positive operating cash flow.
1.2 Ratios
NEP's Return On Assets of -0.04% is on the low side compared to the rest of the industry. NEP is outperformed by 60.00% of its industry peers.
NEP has a Return On Equity of -0.28%. This is in the lower half of the industry: NEP underperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.42%, NEP is doing worse than 65.00% of the companies in the same industry.
| 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
NEP's Operating Margin of 8.29% is on the low side compared to the rest of the industry. NEP is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of NEP has declined.
NEP does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| 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
NEP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NEP remains at a similar level compared to 1 year ago.
The number of shares outstanding for NEP has been increased compared to 5 years ago.
NEP has a better debt/assets ratio than last year.
2.2 Solvency
NEP has a debt to FCF ratio of 9.51. This is a negative value and a sign of low solvency as NEP would need 9.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.51, NEP belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NEP has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
NEP has a Debt to Equity ratio of 1.43. This is in the better half of the industry: NEP outperforms 70.00% of its industry peers.
| 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.
NEP's Current ratio of 0.79 is on the low side compared to the rest of the industry. NEP is outperformed by 65.00% of its industry peers.
NEP has a Quick 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.
The Quick ratio of NEP (0.69) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 165.26% over the past year.
Measured over the past years, NEP shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.88% on average per year.
NEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.10%.
NEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.54% yearly.
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
Based on estimates for the next years, NEP will show a very negative growth in Earnings Per Share. The EPS will decrease by -38.06% on average per year.
NEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
100.00% of the companies in the same industry are more expensive than NEP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, NEP is valued rather cheaply.
A Price/Forward Earnings ratio of 4.38 indicates a rather cheap valuation of NEP.
Based on the Price/Forward Earnings ratio, NEP is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 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.
100.00% of the companies in the same industry are more expensive than NEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.76 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
NEP's earnings are expected to decrease with -14.63% in the coming years. This may justify a cheaper valuation.
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.
Compared to an average industry Dividend Yield of 6.43, NEP pays a better dividend. On top of this NEP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 34.11% |
5.2 History
The dividend of NEP is nicely growing with an annual growth rate of 6.82%!
NEP has been paying a dividend for at least 10 years, so it has a reliable track record.
NEP has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
10.54
+0.1 (+0.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners57.62%
Inst Owner Change0.01%
Ins Owners0.24%
Ins Owner Change0%
Market Cap985.81M
Analysts54.17
Price Target20.84 (97.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 34.11% |
Yearly Dividend8.73
Dividend Growth(5Y)6.82%
DP-9066.67%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)184.75%
Min EPS beat(2)-169.74%
Max EPS beat(2)539.23%
EPS beat(4)3
Avg EPS beat(4)128.67%
Min EPS beat(4)-169.74%
Max EPS beat(4)539.23%
EPS beat(8)5
Avg EPS beat(8)129.5%
EPS beat(12)8
Avg EPS beat(12)167.87%
EPS beat(16)9
Avg EPS beat(16)148.89%
Revenue beat(2)0
Avg Revenue beat(2)-11.41%
Min Revenue beat(2)-13.58%
Max Revenue beat(2)-9.24%
Revenue beat(4)0
Avg Revenue beat(4)-11.65%
Min Revenue beat(4)-23.31%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-16.17%
Revenue beat(12)0
Avg Revenue beat(12)-15.27%
Revenue beat(16)0
Avg Revenue beat(16)-18.99%
PT rev (1m)-9.78%
PT rev (3m)-25.82%
EPS NQ rev (1m)-48.89%
EPS NQ rev (3m)-83.75%
EPS NY rev (1m)11%
EPS NY rev (3m)12.63%
Revenue NQ rev (1m)-7.02%
Revenue NQ rev (3m)-21.2%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.8 | ||
| P/FCF | 1.76 | ||
| P/OCF | 1.23 | ||
| P/B | 0.31 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)5.65
EY53.61%
EPS(NY)2.41
Fwd EY22.84%
FCF(TTM)5.98
FCFY56.7%
OCF(TTM)8.55
OCFY81.15%
SpS13.15
BVpS34.51
TBVpS11.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.28% | ||
| ROCE | 0.53% | ||
| ROIC | 0.42% | ||
| ROICexc | 0.43% | ||
| ROICexgc | 0.48% | ||
| OM | 8.29% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 45.45% |
ROA(3y)0.97%
ROA(5y)0.64%
ROE(3y)6.55%
ROE(5y)4.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-30.05%
ROICexcg growth 5Y-25.33%
ROICexc growth 3Y-27.3%
ROICexc growth 5Y-22.86%
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
F-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 9.51 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 38.13% | ||
| Cap/Sales | 19.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-Score4
WACC5.02%
ROIC/WACC0.08
Cap/Depr(3y)157.92%
Cap/Depr(5y)118.19%
Cap/Sales(3y)82.96%
Cap/Sales(5y)59.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)165.26%
EPS 3Y45.88%
EPS 5YN/A
EPS Q2Q%289.17%
EPS Next Y-57.38%
EPS Next 2Y-36.56%
EPS Next 3Y-14.63%
EPS Next 5Y-38.06%
Revenue 1Y (TTM)14.1%
Revenue growth 3Y7.79%
Revenue growth 5Y7.54%
Sales Q2Q%26.72%
Revenue Next Year6.02%
Revenue Next 2Y2.7%
Revenue Next 3Y2.56%
Revenue Next 5Y4.59%
EBIT growth 1Y464.29%
EBIT growth 3Y-25.43%
EBIT growth 5Y-15.23%
EBIT Next Year1067.64%
EBIT Next 3Y124.01%
EBIT Next 5Y63.7%
FCF growth 1Y203.9%
FCF growth 3Y-0.3%
FCF growth 5Y17.18%
OCF growth 1Y9.44%
OCF growth 3Y5.72%
OCF growth 5Y18.25%