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%)
Taking everything into account, NEP scores 4 out of 10 in our fundamental rating. NEP was compared to 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! Finally 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.
- 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.
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.
- NEP has a worse Return On Equity (-0.28%) than 60.00% of its industry peers.
- NEP has a Return On Invested Capital of 0.42%. This is in the lower half of the industry: NEP underperforms 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 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- Compared to 1 year ago, NEP has an improved debt to assets ratio.
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.
- With an excellent Debt to FCF ratio value of 9.51, NEP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.43 is on the high side and indicates that NEP has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.43, NEP is in the better half of 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
- A Current Ratio of 0.79 indicates that NEP may have some problems paying its short term obligations.
- NEP has a worse Current ratio (0.79) 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.
- 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
- 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.
- 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
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, NEP is valued rather cheaply.
- The Price/Forward Earnings ratio is 4.38, which indicates a rather cheap valuation of NEP.
- 100.00% of the companies in the same industry are more expensive than NEP, based on the Price/Forward Earnings ratio.
- NEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
| 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.
- 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
- 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
- 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.
- Compared to an average industry Dividend Yield of 1.64, 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 1.84.
| 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 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
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)01-28 2025-01-28/bmo
Earnings (Next)N/A N/A
Inst Owners57.62%
Inst Owner Change0.03%
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.
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%.