XCEL ENERGY INC (XEL) Stock Fundamental Analysis
NASDAQ:XEL - Nasdaq - US98389B1008 - Common Stock - Currency: USD
XEL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. XEL has a medium profitability rating, but doesn't score so well on its financial health evaluation. XEL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XEL had positive earnings in the past year.
In the past year XEL had a positive cash flow from operations.
Each year in the past 5 years XEL has been profitable.
In the past 5 years XEL always reported a positive cash flow from operatings.
1.2 Ratios
XEL has a Return On Assets (2.65%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.75%, XEL is in line with its industry, outperforming 48.94% of the companies in the same industry.
With a Return On Invested Capital value of 2.82%, XEL is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
XEL had an Average Return On Invested Capital over the past 3 years of 3.27%. This is significantly below the industry average of 38.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.75% | ||
| ROIC | 2.82% |
ROA(3y)2.79%
ROA(5y)2.77%
ROE(3y)10.13%
ROE(5y)10.14%
ROIC(3y)3.27%
ROIC(5y)3.27%
1.3 Margins
XEL has a Profit Margin (14.10%) which is comparable to the rest of the industry.
XEL's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 17.40%, XEL is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
XEL's Operating Margin has been stable in the last couple of years.
The Gross Margin of XEL (92.78%) is better than 97.87% of its industry peers.
XEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.4% | ||
| PM (TTM) | 14.1% | ||
| GM | 92.78% |
OM growth 3Y2.67%
OM growth 5Y-0.62%
PM growth 3Y6.6%
PM growth 5Y3.89%
GM growth 3Y0.42%
GM growth 5Y0.25%
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.
Compared to 1 year ago, XEL has a worse debt to assets ratio.
2.2 Solvency
XEL has an Altman-Z score of 0.92. This is a bad value and indicates that XEL is not financially healthy and even has some risk of bankruptcy.
XEL has a Altman-Z score (0.92) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that XEL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, XEL is in line with its industry, outperforming 44.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.43
WACC6.64%
2.3 Liquidity
XEL has a Current Ratio of 0.80. 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 worse Current ratio (0.80) than 63.83% of its industry peers.
A Quick Ratio of 0.70 indicates that XEL may have some problems paying its short term obligations.
XEL has a Quick ratio of 0.70. This is comparable to the rest of the industry: XEL outperforms 51.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.69% over the past year.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
The Revenue has decreased by -5.39% in the past year.
XEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.12% yearly.
EPS 1Y (TTM)3.69%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%38.89%
Revenue 1Y (TTM)-5.39%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%8.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.11% on average over the next years. This is quite good.
Based on estimates for the next years, XEL will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y10.64%
EPS Next 2Y9.39%
EPS Next 3Y8.92%
EPS Next 5Y8.11%
Revenue Next Year3.94%
Revenue Next 2Y5.2%
Revenue Next 3Y5.56%
Revenue Next 5Y6.09%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.13 indicates a rather expensive valuation of XEL.
65.96% of the companies in the same industry are cheaper than XEL, based on the Price/Earnings ratio.
XEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
XEL is valuated rather expensively with a Price/Forward Earnings ratio of 17.64.
XEL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, XEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
XEL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. XEL is more expensive than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XEL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.89
PEG (5Y)3.54
EPS Next 2Y9.39%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, XEL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, XEL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, XEL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
On average, the dividend of XEL grows each year by 6.45%, which is quite nice.
XEL has paid a dividend for at least 10 years, which is a reliable track record.
XEL has decreased its dividend recently.
Dividend Growth(5Y)6.45%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
62.20% of the earnings are spent on dividend by XEL. This is not a sustainable payout ratio.
The dividend of XEL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.2%
EPS Next 2Y9.39%
EPS Next 3Y8.92%
73.47
+0.03 (+0.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change0.02%
Ins Owners0.15%
Ins Owner Change5.5%
Market Cap42.37B
Analysts80
Price Target77.3 (5.21%)
Short Float %1.56%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend2.08
Dividend Growth(5Y)6.45%
DP62.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.89%
Min EPS beat(2)-9.55%
Max EPS beat(2)-8.23%
EPS beat(4)0
Avg EPS beat(4)-6.47%
Min EPS beat(4)-9.55%
Max EPS beat(4)-1.66%
EPS beat(8)2
Avg EPS beat(8)-3.08%
EPS beat(12)4
Avg EPS beat(12)-2.36%
EPS beat(16)6
Avg EPS beat(16)-1.8%
Revenue beat(2)0
Avg Revenue beat(2)-9.9%
Min Revenue beat(2)-18.13%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-9.16%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)-1.66%
Revenue beat(8)0
Avg Revenue beat(8)-10.57%
Revenue beat(12)4
Avg Revenue beat(12)-2.35%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)0.09%
PT rev (3m)1.72%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 17.64 | ||
| P/S | 3.09 | ||
| P/FCF | N/A | ||
| P/OCF | 9.17 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)3.65
EY4.97%
EPS(NY)4.16
Fwd EY5.67%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)8.01
OCFY10.9%
SpS23.75
BVpS34.34
TBVpS34.34
PEG (NY)1.89
PEG (5Y)3.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.75% | ||
| ROCE | 3.61% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.87% | ||
| ROICexgc | 2.87% | ||
| OM | 17.4% | ||
| PM (TTM) | 14.1% | ||
| GM | 92.78% | ||
| FCFM | N/A |
ROA(3y)2.79%
ROA(5y)2.77%
ROE(3y)10.13%
ROE(5y)10.14%
ROIC(3y)3.27%
ROIC(5y)3.27%
ROICexc(3y)3.28%
ROICexc(5y)3.28%
ROICexgc(3y)3.28%
ROICexgc(5y)3.28%
ROCE(3y)4.2%
ROCE(5y)4.2%
ROICexcg growth 3Y-3.22%
ROICexcg growth 5Y-4%
ROICexc growth 3Y-3.22%
ROICexc growth 5Y-4%
OM growth 3Y2.67%
OM growth 5Y-0.62%
PM growth 3Y6.6%
PM growth 5Y3.89%
GM growth 3Y0.42%
GM growth 5Y0.25%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 264.56% | ||
| Cap/Sales | 57.05% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 86.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.92 |
F-Score4
WACC6.64%
ROIC/WACC0.43
Cap/Depr(3y)221.93%
Cap/Depr(5y)222.34%
Cap/Sales(3y)42.1%
Cap/Sales(5y)40.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.69%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%38.89%
EPS Next Y10.64%
EPS Next 2Y9.39%
EPS Next 3Y8.92%
EPS Next 5Y8.11%
Revenue 1Y (TTM)-5.39%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%8.55%
Revenue Next Year3.94%
Revenue Next 2Y5.2%
Revenue Next 3Y5.56%
Revenue Next 5Y6.09%
EBIT growth 1Y-11.51%
EBIT growth 3Y2.7%
EBIT growth 5Y2.48%
EBIT Next Year114.14%
EBIT Next 3Y38.63%
EBIT Next 5Y27.18%
FCF growth 1Y-405.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.7%
OCF growth 3Y28.47%
OCF growth 5Y7.3%