NEXTERA ENERGY PARTNERS LP (NEP) Stock Fundamental Analysis
NYSE:NEP - New York Stock Exchange, Inc. - US65341B1061 - Common Stock
NEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. NEP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NEP is cheap, but on the other hand it scores bad on growth. NEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NEP had positive earnings in the past year.
NEP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEP reported negative net income in multiple years.
In the past 5 years NEP always reported a positive cash flow from operatings.
1.2 Ratios
NEP has a Return On Assets of 0.98%. This is comparable to the rest of the industry: NEP outperforms 55.00% of its industry peers.
The Return On Equity of NEP (5.98%) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 5.98% | ||
| ROIC | N/A |
ROA(3y)1.23%
ROA(5y)0.5%
ROE(3y)8.18%
ROE(5y)3.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NEP has a Profit Margin of 20.48%. This is amongst the best in the industry. NEP outperforms 85.00% of its industry peers.
NEP's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for NEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.48% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-3.05%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NEP does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NEP has more shares outstanding
NEP has more shares outstanding than it did 5 years ago.
NEP has a worse debt/assets ratio than last year.
2.2 Solvency
NEP has a debt to FCF ratio of 17.13. This is a negative value and a sign of low solvency as NEP would need 17.13 years to pay back of all of its debts.
NEP's Debt to FCF ratio of 17.13 is amongst the best of the industry. NEP outperforms 85.00% of its industry peers.
NEP has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
NEP's Debt to Equity ratio of 1.49 is fine compared to the rest of the industry. NEP outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.08%
2.3 Liquidity
A Current Ratio of 2.02 indicates that NEP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.02, NEP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
NEP has a Quick Ratio of 1.78. This is a normal value and indicates that NEP is financially healthy and should not expect problems in meeting its short term obligations.
NEP has a Quick ratio of 1.78. This is in the better half of the industry: NEP outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.91% over the past year.
NEP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.29% yearly.
Looking at the last year, NEP shows a very negative growth in Revenue. The Revenue has decreased by -22.43% in the last year.
Measured over the past years, NEP shows a small growth in Revenue. The Revenue has been growing by 6.93% on average per year.
EPS 1Y (TTM)63.91%
EPS 3YN/A
EPS 5Y25.29%
EPS Q2Q%-175.44%
Revenue 1Y (TTM)-22.43%
Revenue growth 3Y5.54%
Revenue growth 5Y6.93%
Sales Q2Q%-13.08%
3.2 Future
NEP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.66% yearly.
Based on estimates for the next years, NEP will show a decrease in Revenue. The Revenue will decrease by -1.64% on average per year.
EPS Next Y-17.67%
EPS Next 2Y0.91%
EPS Next 3Y2.2%
EPS Next 5Y-3.66%
Revenue Next Year-10.62%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.88%
Revenue Next 5Y-1.64%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.68, the valuation of NEP can be described as very cheap.
Based on the Price/Earnings ratio, NEP is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. NEP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.72, the valuation of NEP can be described as very cheap.
NEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEP is cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEP to the average of the S&P500 Index (24.44), we can say NEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NEP is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y0.91%
EPS Next 3Y2.2%
5. Dividend
5.1 Amount
NEP has a Yearly Dividend Yield of 21.26%, which is a nice return.
In the last 3 months the price of NEP has falen by -20.62%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NEP's Dividend Yield is rather good when compared to the industry average which is at 6.37. NEP pays more dividend than 100.00% of the companies in the same industry.
NEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.26% |
5.2 History
On average, the dividend of NEP grows each year by 8.32%, which is quite nice.
NEP has been paying a dividend for at least 10 years, so it has a reliable track record.
NEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.32%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
NEP pays out 383.82% of its income as dividend. This is not a sustainable payout ratio.
NEP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP383.82%
EPS Next 2Y0.91%
EPS Next 3Y2.2%
NEXTERA ENERGY PARTNERS LP
NYSE:NEP (1/21/2025, 8:16:45 PM)
Premarket: 16.8 +0.05 (+0.3%)16.75
-0.3 (-1.76%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners57.62%
Inst Owner Change-0.09%
Ins Owners0.24%
Ins Owner Change0%
Market Cap1.57B
Analysts56
Price Target23.1 (37.91%)
Short Float %4.37%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.26% |
Yearly Dividend8.22
Dividend Growth(5Y)8.32%
DP383.82%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-84.57%
Min EPS beat(2)-169.74%
Max EPS beat(2)0.6%
EPS beat(4)3
Avg EPS beat(4)158.05%
Min EPS beat(4)-169.74%
Max EPS beat(4)656.76%
EPS beat(8)4
Avg EPS beat(8)58.78%
EPS beat(12)7
Avg EPS beat(12)111.83%
EPS beat(16)9
Avg EPS beat(16)123.67%
Revenue beat(2)0
Avg Revenue beat(2)-4.86%
Min Revenue beat(2)-9.24%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-16.54%
Min Revenue beat(4)-33.12%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-17.23%
Revenue beat(12)0
Avg Revenue beat(12)-17.77%
Revenue beat(16)0
Avg Revenue beat(16)-20.26%
PT rev (1m)-4.52%
PT rev (3m)-20.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1162.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.38%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.72 | ||
| P/S | 1.57 | ||
| P/FCF | 5.19 | ||
| P/OCF | 2.25 | ||
| P/B | 0.46 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)2.18
EY13.01%
EPS(NY)2.17
Fwd EY12.95%
FCF(TTM)3.23
FCFY19.28%
OCF(TTM)7.44
OCFY44.43%
SpS10.65
BVpS36.49
TBVpS7.75
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 5.98% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.48% | ||
| GM | N/A | ||
| FCFM | 30.32% |
ROA(3y)1.23%
ROA(5y)0.5%
ROE(3y)8.18%
ROE(5y)3.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-3.05%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 17.13 | ||
| Debt/EBITDA | 9.26 | ||
| Cap/Depr | 61.95% | ||
| Cap/Sales | 39.56% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 127.01% | ||
| Profit Quality | 148.04% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | N/A |
F-Score7
WACC5.08%
ROIC/WACCN/A
Cap/Depr(3y)154.51%
Cap/Depr(5y)116.18%
Cap/Sales(3y)80.26%
Cap/Sales(5y)57.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.91%
EPS 3YN/A
EPS 5Y25.29%
EPS Q2Q%-175.44%
EPS Next Y-17.67%
EPS Next 2Y0.91%
EPS Next 3Y2.2%
EPS Next 5Y-3.66%
Revenue 1Y (TTM)-22.43%
Revenue growth 3Y5.54%
Revenue growth 5Y6.93%
Sales Q2Q%-13.08%
Revenue Next Year-10.62%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.88%
Revenue Next 5Y-1.64%
EBIT growth 1Y-173.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year310.93%
EBIT Next 3Y61.48%
EBIT Next 5Y31.38%
FCF growth 1Y256.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.56%
OCF growth 3Y3.2%
OCF growth 5Y15.09%