XCEL ENERGY INC (XEL)
US98389B1008 - Common Stock
We assign a fundamental rating of 4 out of 10 to XEL. XEL was compared to 45 industry peers in the Electric Utilities industry. XEL has an excellent profitability rating, but there are concerns on its financial health. XEL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XEL was profitable.
XEL had a positive operating cash flow in the past year.
In the past 5 years XEL has always been profitable.
XEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XEL has a Return On Assets (2.81%) which is in line with its industry peers.
XEL has a Return On Equity of 10.32%. This is in the better half of the industry: XEL outperforms 71.11% of its industry peers.
XEL's Return On Invested Capital of 3.50% is in line compared to the rest of the industry. XEL outperforms 51.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XEL is in line with the industry average of 4.92%.
The last Return On Invested Capital (3.50%) for XEL is above the 3 year average (3.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 10.32% | ||
| ROIC | 3.5% |
ROA(3y)2.79%
ROA(5y)2.76%
ROE(3y)10.23%
ROE(5y)10.23%
ROIC(3y)3.37%
ROIC(5y)3.41%
1.3 Margins
With a decent Profit Margin value of 13.36%, XEL is doing good in the industry, outperforming 62.22% of the companies in the same industry.
XEL's Profit Margin has improved in the last couple of years.
XEL has a Operating Margin (19.56%) which is comparable to the rest of the industry.
XEL's Operating Margin has been stable in the last couple of years.
The Gross Margin of XEL (91.72%) is better than 97.78% of its industry peers.
In the last couple of years the Gross Margin of XEL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.56% | ||
| PM (TTM) | 13.36% | ||
| GM | 91.72% |
OM growth 3Y-0.26%
OM growth 5Y1.31%
PM growth 3Y-0.82%
PM growth 5Y2.67%
GM growth 3Y-1.55%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XEL is destroying value.
The number of shares outstanding for XEL has been increased compared to 1 year ago.
The number of shares outstanding for XEL has been increased compared to 5 years ago.
The debt/assets ratio for XEL is higher compared to a year ago.
2.2 Solvency
XEL has an Altman-Z score of 0.89. This is a bad value and indicates that XEL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of XEL (0.89) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.51 is on the high side and indicates that XEL has dependencies on debt financing.
XEL has a Debt to Equity ratio of 1.51. This is comparable to the rest of the industry: XEL outperforms 57.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.56
WACC6.25%
2.3 Liquidity
XEL has a Current Ratio of 0.86. This is a bad value and indicates that XEL is not financially healthy enough and could expect problems in meeting its short term obligations.
XEL's Current ratio of 0.86 is on the low side compared to the rest of the industry. XEL is outperformed by 60.00% of its industry peers.
XEL has a Quick Ratio of 0.86. This is a bad value and indicates that XEL is not financially healthy enough and could expect problems in meeting its short term obligations.
XEL has a Quick ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
XEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.47% yearly.
The Revenue for XEL has decreased by -11.92% in the past year. This is quite bad
XEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.25% yearly.
EPS 1Y (TTM)8.36%
EPS 3Y6.73%
EPS 5Y6.47%
EPS growth Q2Q15.79%
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y7.22%
Revenue growth 5Y4.25%
Revenue growth Q2Q-10.56%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y6.73%
EPS Next 2Y7.03%
EPS Next 3Y7.14%
EPS Next 5Y7.15%
Revenue Next Year2.6%
Revenue Next 2Y3.65%
Revenue Next 3Y3.96%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.96, the valuation of XEL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as XEL.
XEL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
XEL is valuated correctly with a Price/Forward Earnings ratio of 14.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XEL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.47, XEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
XEL's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of XEL may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)2.46
EPS Next 2Y7.03%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, XEL has a reasonable but not impressive dividend return.
XEL's Dividend Yield is comparable with the industry average which is at 3.99.
XEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
On average, the dividend of XEL grows each year by 6.72%, which is quite nice.
XEL has been paying a dividend for at least 10 years, so it has a reliable track record.
XEL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.72%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
XEL pays out 60.46% of its income as dividend. This is not a sustainable payout ratio.
XEL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.46%
EPS Next 2Y7.03%
EPS Next 3Y7.14%
XCEL ENERGY INC
NASDAQ:XEL (5/16/2024, 7:26:34 PM)
After market: 55.85 0 (0%)55.85
+0.06 (+0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 14.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.37
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 10.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.56% | ||
| PM (TTM) | 13.36% | ||
| GM | 91.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.36%
EPS 3Y6.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y7.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y