NEXTERA ENERGY PARTNERS LP (NEP) Fundamental Analysis & Valuation

NYSE:NEP • US65341B1061

10.54 USD
+0.1 (+0.96%)
At close: Jan 31, 2025
10.47 USD
-0.07 (-0.66%)
After Hours: 1/31/2025, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This NEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

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 may be in some trouble as it scores bad on both profitability and health. NEP is valued quite cheap, while showing a decent growth score. This is a good combination! Finally NEP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

2

1. NEP Profitability Analysis

1.1 Basic Checks

  • In the past year NEP was profitable.
  • NEP had a positive operating cash flow in the past year.
  • In multiple years NEP reported negative net income over the last 5 years.
  • Each year in the past 5 years NEP had a positive operating cash flow.
NEP Yearly Net Income VS EBIT VS OCF VS FCFNEP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

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.
  • 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.
  • 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 RankSector 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
NEP Yearly ROA, ROE, ROICNEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

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 RankSector 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
NEP Yearly Profit, Operating, Gross MarginsNEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. NEP Health Analysis

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.
  • The debt/assets ratio for NEP has been reduced compared to a year ago.
NEP Yearly Shares OutstandingNEP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
NEP Yearly Total Debt VS Total AssetsNEP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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.
  • 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 RankSector Rank
Debt/Equity 1.43
Debt/FCF 9.51
Altman-Z N/A
ROIC/WACC0.08
WACC5.02%
NEP Yearly LT Debt VS Equity VS FCFNEP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 0.79 indicates that NEP may have some problems paying its short term obligations.
  • NEP has a Current ratio of 0.79. This is in the lower half of the industry: NEP underperforms 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 RankSector Rank
Current Ratio 0.79
Quick Ratio 0.69
NEP Yearly Current Assets VS Current LiabilitesNEP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NEP Growth Analysis

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
  • 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.
  • 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.
NEP Yearly Revenue VS EstimatesNEP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B
NEP Yearly EPS VS EstimatesNEP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 4

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Find the best growth stocksShow best growing peers

7

4. NEP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 1.87, which indicates a rather cheap valuation of NEP.
  • 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.
  • NEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
  • With a Price/Forward Earnings ratio of 4.38, the valuation of NEP can be described as very cheap.
  • NEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEP is cheaper than 100.00% of the companies in the same industry.
  • NEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1.87
Fwd PE 4.38
NEP Price Earnings VS Forward Price EarningsNEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEP indicates a rather cheap valuation: NEP is cheaper than 95.00% of the companies listed in the same industry.
  • 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 RankSector Rank
P/FCF 1.76
EV/EBITDA 8.2
NEP Per share dataNEP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. NEP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 34.11%, NEP is a good candidate for dividend investing.
  • 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 1.31, 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 1.82.
Industry RankSector 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
NEP Yearly Dividends per shareNEP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

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%
NEP Yearly Income VS Free CF VS DividendNEP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M 800M

More info and screens

Find the best dividend stocksShow peers with best dividend

NEP Fundamentals: All Metrics, Ratios and Statistics

NEXTERA ENERGY PARTNERS LP

NYSE:NEP (1/31/2025, 8:04:00 PM)

After market: 10.47 -0.07 (-0.66%)

10.54

+0.1 (+0.96%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)01-28
Earnings (Next)N/A
Inst Owners57.62%
Inst Owner Change17.85%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


Can you provide the valuation status for NEXTERA ENERGY PARTNERS LP?

ChartMill assigns a valuation rating of 7 / 10 to NEXTERA ENERGY PARTNERS LP (NEP). This can be considered as Undervalued.


Can you provide the profitability details for NEXTERA ENERGY PARTNERS LP?

NEXTERA ENERGY PARTNERS LP (NEP) has a profitability rating of 2 / 10.


Can you provide the expected EPS growth for NEP stock?

The Earnings per Share (EPS) of NEXTERA ENERGY PARTNERS LP (NEP) is expected to decline by -57.38% in the next year.


How sustainable is the dividend of NEXTERA ENERGY PARTNERS LP (NEP) stock?

The dividend rating of NEXTERA ENERGY PARTNERS LP (NEP) is 7 / 10 and the dividend payout ratio is -9066.67%.