XCEL ENERGY INC (XEL) Stock Fundamental Analysis
USA - NASDAQ:XEL - US98389B1008 - Common Stock
72.11 USD
-0.06 (-0.08%)
72.09 USD
-0.02 (-0.03%)
XEL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. There are concerns on the financial health of XEL while its profitability can be described as average. 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.
In the past year XEL had a positive cash flow from operations.
Each year in the past 5 years XEL has been profitable.
Each year in the past 5 years XEL had a positive operating cash flow.
1.2 Ratios
XEL has a Return On Assets (2.75%) which is in line with its industry peers.
The Return On Equity of XEL (9.89%) is comparable to the rest of the industry.
XEL's Return On Invested Capital of 2.82% is on the low side compared to the rest of the industry. XEL is outperformed by 87.50% of its industry peers.
XEL had an Average Return On Invested Capital over the past 3 years of 3.27%. This is below the industry average of 5.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 9.89% | ||
| 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
The Profit Margin of XEL (14.85%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of XEL has grown nicely.
XEL has a worse Operating Margin (18.00%) than 66.67% of its industry peers.
XEL's Operating Margin has been stable in the last couple of years.
XEL has a better Gross Margin (92.80%) than 97.92% 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 | 18% | ||
| PM (TTM) | 14.85% | ||
| GM | 92.8% |
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.
XEL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, XEL has more shares outstanding
The debt/assets ratio for XEL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that XEL is in the distress zone and has some risk of bankruptcy.
XEL has a Altman-Z score (0.93) which is in line with its industry peers.
XEL has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of XEL (1.53) is worse than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACC0.43
WACC6.59%
2.3 Liquidity
A Current Ratio of 0.96 indicates that XEL may have some problems paying its short term obligations.
XEL's Current ratio of 0.96 is in line compared to the rest of the industry. XEL outperforms 58.33% of its industry peers.
A Quick Ratio of 0.85 indicates that XEL may have some problems paying its short term obligations.
XEL has a Quick ratio of 0.85. This is comparable to the rest of the industry: XEL outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.69% over the past 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.
The Revenue has been growing slightly by 1.28% in the past year.
Measured over the past years, XEL shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
EPS 1Y (TTM)3.69%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%38.89%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%8.55%
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 5.24% yearly.
EPS Next Y10.67%
EPS Next 2Y9.4%
EPS Next 3Y9%
EPS Next 5Y8.11%
Revenue Next Year3.01%
Revenue Next 2Y4.79%
Revenue Next 3Y5.25%
Revenue Next 5Y5.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
XEL is valuated rather expensively with a Price/Earnings ratio of 19.76.
Based on the Price/Earnings ratio, XEL is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of XEL to the average of the S&P500 Index (27.38), we can say XEL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.31, the valuation of XEL can be described as rather expensive.
XEL's Price/Forward Earnings ratio is in line with the industry average.
XEL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XEL is valued a bit more expensive than the industry average as 72.92% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.25 |
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)3.48
EPS Next 2Y9.4%
EPS Next 3Y9%
5. Dividend
5.1 Amount
XEL has a Yearly Dividend Yield of 3.15%.
XEL's Dividend Yield is comparable with the industry average which is at 3.77.
Compared to an average S&P500 Dividend Yield of 2.38, XEL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
On average, the dividend of XEL grows each year by 6.45%, which is quite nice.
XEL has been paying a dividend for at least 10 years, so it has 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
XEL pays out 59.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
XEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.09%
EPS Next 2Y9.4%
EPS Next 3Y9%
72.11
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.61%
Inst Owner Change4.36%
Ins Owners0.15%
Ins Owner Change0.43%
Market Cap42.65B
Analysts80
Price Target78.85 (9.35%)
Short Float %2.46%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend2.08
Dividend Growth(5Y)6.45%
DP59.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.56%
Min EPS beat(2)-9.55%
Max EPS beat(2)14.67%
EPS beat(4)1
Avg EPS beat(4)-1.19%
Min EPS beat(4)-9.55%
Max EPS beat(4)14.67%
EPS beat(8)3
Avg EPS beat(8)-0.13%
EPS beat(12)5
Avg EPS beat(12)-1.02%
EPS beat(16)6
Avg EPS beat(16)-1.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)1.39%
Revenue beat(4)1
Avg Revenue beat(4)-6.63%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)1.39%
Revenue beat(8)1
Avg Revenue beat(8)-8.96%
Revenue beat(12)4
Avg Revenue beat(12)-3.02%
Revenue beat(16)8
Avg Revenue beat(16)-0.65%
PT rev (1m)0.59%
PT rev (3m)2.1%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 17.31 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 9.46 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)3.65
EY5.06%
EPS(NY)4.16
Fwd EY5.78%
FCF(TTM)-6.6
FCFYN/A
OCF(TTM)7.63
OCFY10.57%
SpS23.6
BVpS35.44
TBVpS35.44
PEG (NY)1.85
PEG (5Y)3.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 9.89% | ||
| ROCE | 3.62% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.88% | ||
| ROICexgc | 2.88% | ||
| OM | 18% | ||
| PM (TTM) | 14.85% | ||
| GM | 92.8% | ||
| 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-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.84 | ||
| Cap/Depr | 283.39% | ||
| Cap/Sales | 60.26% | ||
| Interest Coverage | 2.1 | ||
| Cash Conversion | 82.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 0.93 |
F-Score5
WACC6.59%
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 Y10.67%
EPS Next 2Y9.4%
EPS Next 3Y9%
EPS Next 5Y8.11%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%8.55%
Revenue Next Year3.01%
Revenue Next 2Y4.79%
Revenue Next 3Y5.25%
Revenue Next 5Y5.24%
EBIT growth 1Y-7.82%
EBIT growth 3Y2.7%
EBIT growth 5Y2.48%
EBIT Next Year113.73%
EBIT Next 3Y38.83%
EBIT Next 5Y26.57%
FCF growth 1Y-388.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.52%
OCF growth 3Y28.47%
OCF growth 5Y7.3%