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%)
NEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 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. NEP is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
Looking at the Return On Equity, with a value of -0.28%, NEP is doing worse than 60.00% of the companies in the same industry.
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
The Operating Margin of NEP (8.29%) is worse than 60.00% of its industry peers.
NEP's Operating Margin has declined in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEP is destroying value.
Compared to 1 year ago, NEP has about the same amount of shares outstanding.
NEP has more shares outstanding than it did 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.
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.
A Debt/Equity ratio of 1.43 is on the high side and indicates that NEP has dependencies on debt 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.
Looking at the Current ratio, with a value of 0.79, NEP is doing worse than 65.00% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that NEP may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, NEP is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| 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.
NEP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.88% yearly.
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
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.
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.
NEP's Price/Earnings ratio is rather cheap when compared to the industry. NEP is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, NEP is valued rather cheaply.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, NEP is valued rather cheaply.
| 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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
| 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.
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.
NEP's Dividend Yield is rather good when compared to the industry average which is at 1.46. NEP pays more dividend than 100.00% of the companies in the same industry.
NEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| 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 Change-9.32%
Ins Owners0.24%
Ins Owner Change0%
Market Cap985.81M
Revenue(TTM)1.23B
Net Income(TTM)-9.00M
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
Graham NumberN/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
ROICexgc growth 3Y-30.05%
ROICexgc 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%
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.
What is the valuation status for NEP stock?
ChartMill assigns a valuation rating of 7 / 10 to NEXTERA ENERGY PARTNERS LP (NEP). This can be considered as Undervalued.
What is the profitability of NEP stock?
NEXTERA ENERGY PARTNERS LP (NEP) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for NEP stock?
The Price/Earnings (PE) ratio for NEXTERA ENERGY PARTNERS LP (NEP) is 1.87 and the Price/Book (PB) ratio is 0.31.
What is the expected EPS growth for NEXTERA ENERGY PARTNERS LP (NEP) stock?
The Earnings per Share (EPS) of NEXTERA ENERGY PARTNERS LP (NEP) is expected to decline by -57.38% in the next year.