NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
USA - 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. 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
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
With a Return On Assets value of -0.04%, NEP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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
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.
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.
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
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.
With a decent Debt to Equity ratio value of 1.43, NEP is doing good in 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.
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.
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.
The Revenue has grown by 14.10% in the past year. This is quite good.
Measured over the past years, NEP shows a small growth in Revenue. The Revenue has been growing by 7.54% on average per year.
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
NEP is valuated cheaply with a Price/Earnings ratio of 1.87.
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 25.89, NEP is valued rather cheaply.
The Price/Forward Earnings ratio is 4.38, which indicates a rather cheap valuation of NEP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEP indicates a rather cheap valuation: NEP is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. NEP is valued rather cheaply when compared to this.
| 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.
NEP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEP is 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
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 3.66, 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 2.36.
| 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 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-1.98%
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.