XCEL ENERGY INC (XEL) Stock Fundamental Analysis
NASDAQ:XEL - Nasdaq - US98389B1008 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to XEL. XEL was compared to 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. While showing a medium growth rate, XEL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year XEL was profitable.
In the past year XEL had a positive cash flow from operations.
XEL had positive earnings in each of the past 5 years.
Each year in the past 5 years XEL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, XEL is in line with its industry, outperforming 40.43% of the companies in the same industry.
XEL has a Return On Equity (9.75%) which is comparable to the rest of the industry.
XEL has a Return On Invested Capital of 2.82%. This is amonst the worse of the industry: XEL underperforms 89.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XEL 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's Profit Margin of 14.10% is in line compared to the rest of the industry. XEL outperforms 57.45% of its industry peers.
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.
XEL has a better Gross Margin (92.78%) than 97.87% 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 | 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.
XEL has more shares outstanding than it did 5 years ago.
XEL has a worse debt/assets ratio than last year.
2.2 Solvency
XEL has an Altman-Z score of 0.88. 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 (0.88) which is in line with its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that XEL has dependencies on debt financing.
XEL has a Debt to Equity ratio of 1.52. This is comparable to the rest of the industry: XEL outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.34
WACC8.33%
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.
The Current ratio of XEL (0.80) is worse than 63.83% of its industry peers.
XEL has a Quick 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 Quick ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for XEL have decreased by -1.71% in the last year.
Measured over the past 5 years, XEL shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
XEL shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)-1.71%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%7.04%
3.2 Future
Based on estimates for the next years, XEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
XEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y10.64%
EPS Next 2Y9.46%
EPS Next 3Y8.94%
EPS Next 5Y8.11%
Revenue Next Year3.83%
Revenue Next 2Y5.15%
Revenue Next 3Y5.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.69, which indicates a rather expensive current valuation of XEL.
68.09% of the companies in the same industry are cheaper than XEL, based on the Price/Earnings ratio.
XEL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.25, which indicates a correct valuation of XEL.
XEL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of XEL to the average of the S&P500 Index (21.43), we can say XEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 16.25 |
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 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.83 |
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)1.85
PEG (5Y)3.47
EPS Next 2Y9.46%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
XEL has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.70, XEL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, XEL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of XEL is nicely growing with an annual growth rate of 6.45%!
XEL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of XEL decreased 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.
XEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.2%
EPS Next 2Y9.46%
EPS Next 3Y8.94%
67.75
+0.43 (+0.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change1.52%
Ins Owners0.15%
Ins Owner Change5.63%
Market Cap39.08B
Analysts80
Price Target77.23 (13.99%)
Short Float %1.54%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)0.19%
PT rev (3m)4.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 16.25 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 8.46 | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)3.44
EY5.08%
EPS(NY)4.17
Fwd EY6.15%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)8.01
OCFY11.82%
SpS23.75
BVpS34.34
TBVpS34.34
PEG (NY)1.85
PEG (5Y)3.47
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 | 0.88 |
F-Score4
WACC8.33%
ROIC/WACC0.34
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)-1.71%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%-4.55%
EPS Next Y10.64%
EPS Next 2Y9.46%
EPS Next 3Y8.94%
EPS Next 5Y8.11%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%7.04%
Revenue Next Year3.83%
Revenue Next 2Y5.15%
Revenue Next 3Y5.54%
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%