XCEL ENERGY INC (XEL) Stock Fundamental Analysis
NASDAQ:XEL - Nasdaq - US98389B1008 - Common Stock - Currency: USD
Overall XEL gets a fundamental rating of 4 out of 10. We evaluated XEL against 46 industry peers in the Electric Utilities industry. While XEL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, XEL is valued expensive at the moment.
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.
In the past 5 years XEL has always 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 (2.65%) which is in line with its industry peers.
XEL has a Return On Equity of 9.75%. This is in the better half of the industry: XEL outperforms 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.82%, XEL is doing worse than 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for XEL is in line with the industry average of 4.68%.
| 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
With a decent Profit Margin value of 14.10%, XEL is doing good in the industry, outperforming 63.04% of the companies in the same industry.
In the last couple of years the Profit Margin of XEL has grown nicely.
The Operating Margin of XEL (17.40%) is worse than 60.87% of its industry peers.
XEL's Operating Margin has been stable in the last couple of years.
XEL has a better Gross Margin (92.78%) than 97.83% 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.
Compared to 1 year ago, XEL has a worse debt to assets ratio.
2.2 Solvency
XEL has an Altman-Z score of 0.90. This is a bad value and indicates that XEL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, XEL is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
XEL has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
XEL has a better Debt to Equity ratio (1.52) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.43
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.80 indicates that XEL may have some problems paying its short term obligations.
XEL has a Current ratio of 0.80. This is in the better half of the industry: XEL outperforms 60.87% 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 in the better half of the industry: XEL outperforms 63.04% 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 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.
Looking at the last year, XEL shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
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 8.15% on average per year.
Based on estimates for the next years, XEL will show a small growth in Revenue. The Revenue will grow by 6.04% on average per year.
EPS Next Y10.69%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y8.15%
Revenue Next Year4.39%
Revenue Next 2Y5.2%
Revenue Next 3Y5.71%
Revenue Next 5Y6.04%
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
With a Price/Earnings ratio of 20.57, XEL is valued on the expensive side.
XEL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.22, XEL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.96, XEL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XEL indicates a somewhat cheap valuation: XEL is cheaper than 60.87% of the companies listed in the same industry.
XEL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XEL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
XEL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)3.62
EPS Next 2Y9.51%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, XEL has a reasonable but not impressive dividend return.
XEL's Dividend Yield is comparable with the industry average which is at 3.44.
XEL's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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.
XEL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.45%
Div Incr Years20
Div Non Decr Years20
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 2Y9.51%
EPS Next 3Y8.79%
70.77
+0.37 (+0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change0.11%
Ins Owners0.19%
Ins Owner Change4.5%
Market Cap40.82B
Analysts80
Price Target76 (7.39%)
Short Float %1.45%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.08
Dividend Growth(5Y)6.45%
DP62.2%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.13%
Min EPS beat(2)-10.02%
Max EPS beat(2)-8.23%
EPS beat(4)0
Avg EPS beat(4)-6.59%
Min EPS beat(4)-10.02%
Max EPS beat(4)-1.66%
EPS beat(8)2
Avg EPS beat(8)-3.14%
EPS beat(12)4
Avg EPS beat(12)-2.4%
EPS beat(16)6
Avg EPS beat(16)-1.83%
Revenue beat(2)0
Avg Revenue beat(2)-9.61%
Min Revenue beat(2)-18.13%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-9.02%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)-1.09%
Revenue beat(8)0
Avg Revenue beat(8)-10.5%
Revenue beat(12)4
Avg Revenue beat(12)-2.3%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)2.35%
PT rev (3m)2.86%
EPS NQ rev (1m)2.1%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)-3.64%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.98 | ||
| P/FCF | N/A | ||
| P/OCF | 8.84 | ||
| P/B | 2.06 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)3.44
EY4.86%
EPS(NY)4.17
Fwd EY5.9%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)8.01
OCFY11.32%
SpS23.75
BVpS34.34
TBVpS34.34
PEG (NY)1.92
PEG (5Y)3.62
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 | 0.9 |
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)-1.71%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%-4.55%
EPS Next Y10.69%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y8.15%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%7.04%
Revenue Next Year4.39%
Revenue Next 2Y5.2%
Revenue Next 3Y5.71%
Revenue Next 5Y6.04%
EBIT growth 1Y-11.51%
EBIT growth 3Y2.7%
EBIT growth 5Y2.48%
EBIT Next Year117.67%
EBIT Next 3Y38.85%
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%