NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
NYSE:NEP - New York Stock Exchange, Inc. - US65341B1061 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEP. NEP was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. NEP has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEP. Finally NEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NEP had positive earnings in the past year.
NEP had a positive operating cash flow in the past year.
In multiple years NEP reported negative net income over the last 5 years.
In the past 5 years NEP always reported a positive cash flow from operatings.
1.2 Ratios
NEP has a Return On Assets of -0.04%. This is in the lower half of the industry: NEP underperforms 60.00% of its industry peers.
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.
NEP's Return On Invested Capital of 0.42% is on the low side compared to the rest of the industry. NEP is outperformed by 65.00% of its industry peers.
| 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.
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
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
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's Debt to FCF ratio of 9.51 is amongst the best of 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.
NEP has a better Debt to Equity ratio (1.43) than 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
A Current Ratio of 0.79 indicates that NEP may have some problems paying its short term obligations.
The Current ratio of NEP (0.79) is worse than 65.00% of its industry peers.
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.
The Earnings Per Share has been growing by 45.88% on average over the past years. This is a very strong growth
NEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.10%.
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
The Earnings Per Share is expected to decrease by -38.06% on average over the next years. This is quite bad
Based on estimates for the next years, NEP will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
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.
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
Based on the Price/Earnings ratio of 1.87, the valuation of NEP can be described as very cheap.
100.00% 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 rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 4.38, the valuation of NEP can be described as very cheap.
100.00% of the companies in the same industry are more expensive than NEP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NEP to the average of the S&P500 Index (34.09), we can say NEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEP is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
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.
The stock price of NEP dropped by -45.25% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.80, NEP pays a better dividend. On top of this NEP pays more dividend than 100.00% of the companies listed in the same industry.
NEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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 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
NEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 Change6.65%
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%