NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
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. Both the profitability and financial health of NEP have multiple concerns. NEP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
The reported net income has been mixed in the past 5 years: NEP reported negative net income in multiple years.
NEP had a positive operating cash flow in each of the past 5 years.
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.
NEP has a worse Return On Equity (-0.28%) than 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 has a Operating Margin of 8.29%. This is in the lower half of the industry: NEP underperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEP is destroying value.
NEP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEP has more shares outstanding
The debt/assets ratio for NEP has been reduced compared to a year ago.
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 better Debt to FCF ratio (9.51) than 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.
The Debt to Equity ratio of NEP (1.43) is better 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.
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.
NEP has a Quick ratio of 0.69. This is in the lower half of the industry: NEP underperforms 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%.
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
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.
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
With a 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.
The average S&P500 Price/Earnings ratio is at 27.13. NEP is valued rather cheaply when compared to this.
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.
When comparing the Price/Forward Earnings ratio of NEP to the average of the S&P500 Index (22.76), we can say NEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
95.00% of the companies in the same industry are more expensive than NEP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEP indicates a rather cheap valuation: NEP is cheaper than 100.00% of the companies listed in the same industry.
| 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
With a Yearly Dividend Yield of 34.11%, NEP is a good candidate for dividend investing.
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 4.58. 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 2.32.
| 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 paid a dividend for at least 10 years, which is 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 Change6.21%
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%