XCEL ENERGY INC (XEL)
US98389B1008 - Common Stock
We assign a fundamental rating of 3 out of 10 to XEL. XEL was compared to 46 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XEL was profitable.
XEL had a positive operating cash flow in the past year.
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 of 2.71%. This is comparable to the rest of the industry: XEL outperforms 51.35% of its industry peers.
Looking at the Return On Equity, with a value of 9.72%, XEL is in line with its industry, outperforming 59.46% of the companies in the same industry.
With a Return On Invested Capital value of 3.34%, XEL is not doing good in the industry: 81.08% of the companies in the same industry are doing better.
XEL had an Average Return On Invested Capital over the past 3 years of 3.37%. This is in line with the industry average of 4.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 9.72% | ||
| ROIC | 3.34% |
ROA(3y)2.79%
ROA(5y)2.76%
ROE(3y)10.23%
ROE(5y)10.23%
ROIC(3y)3.37%
ROIC(5y)3.41%
1.3 Margins
XEL has a Profit Margin (13.67%) which is comparable to the rest of the industry.
XEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.52%, XEL is doing worse than 62.16% of the companies in the same industry.
In the last couple of years the Operating Margin of XEL has remained more or less at the same level.
The Gross Margin of XEL (92.30%) is better than 97.30% 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 | 19.52% | ||
| PM (TTM) | 13.67% | ||
| GM | 92.3% |
OM growth 3Y-0.26%
OM growth 5Y1.31%
PM growth 3Y-0.82%
PM growth 5Y2.67%
GM growth 3Y-1.55%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
XEL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
XEL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XEL has been increased compared to 5 years ago.
The debt/assets ratio for XEL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that XEL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, XEL is in line with its industry, outperforming 56.76% of the companies in the same industry.
A Debt/Equity ratio of 1.43 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 1.43, XEL is in line with its industry, outperforming 51.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.5
WACC6.67%
2.3 Liquidity
XEL has a Current Ratio of 0.93. 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 Current ratio of 0.93. This is comparable to the rest of the industry: XEL outperforms 59.46% of its industry peers.
A Quick Ratio of 0.82 indicates that XEL may have some problems paying its short term obligations.
XEL has a Quick ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.63% over the past year.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.47% yearly.
XEL shows a decrease in Revenue. In the last year, the revenue decreased by -7.11%.
Measured over the past years, XEL shows a small growth in Revenue. The Revenue has been growing by 4.25% on average per year.
EPS 1Y (TTM)10.63%
EPS 3Y6.73%
EPS 5Y6.47%
EPS Q2Q%1.63%
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y7.22%
Revenue growth 5Y4.25%
Sales Q2Q%-0.49%
3.2 Future
Based on estimates for the next years, XEL will show a small growth in Earnings Per Share. The EPS will grow by 7.22% on average per year.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y6.35%
EPS Next 2Y6.94%
EPS Next 3Y7.4%
EPS Next 5Y7.22%
Revenue Next Year-3.84%
Revenue Next 2Y1.43%
Revenue Next 3Y2.74%
Revenue Next 5Y3.97%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.40 indicates a rather expensive valuation of XEL.
The rest of the industry has a similar Price/Earnings ratio as XEL.
When comparing the Price/Earnings ratio of XEL to the average of the S&P500 Index (27.48), we can say XEL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.85, XEL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XEL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, XEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.92 |
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)2.9
PEG (5Y)2.84
EPS Next 2Y6.94%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
XEL has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.62, XEL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, XEL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of XEL is nicely growing with an annual growth rate of 6.72%!
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)6.72%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
XEL pays out 61.08% of its income as dividend. This is not a sustainable payout ratio.
The dividend of XEL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.08%
EPS Next 2Y6.94%
EPS Next 3Y7.4%
XCEL ENERGY INC
NASDAQ:XEL (1/6/2025, 4:40:09 PM)
After market: 65.14 0 (0%)65.14
-1.55 (-2.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.78%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change0.15%
Market Cap37.41B
Analysts78.18
Price Target73.77 (13.25%)
Short Float %1.56%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)6.72%
DP61.08%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.05%
Min EPS beat(2)-6.44%
Max EPS beat(2)-1.66%
EPS beat(4)2
Avg EPS beat(4)1.45%
Min EPS beat(4)-6.44%
Max EPS beat(4)12.16%
EPS beat(8)4
Avg EPS beat(8)-0.61%
EPS beat(12)5
Avg EPS beat(12)-0.75%
EPS beat(16)7
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-8.43%
Min Revenue beat(2)-8.77%
Max Revenue beat(2)-8.1%
Revenue beat(4)0
Avg Revenue beat(4)-11.07%
Min Revenue beat(4)-14.91%
Max Revenue beat(4)-8.1%
Revenue beat(8)2
Avg Revenue beat(8)-3.85%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)2.28%
PT rev (3m)8.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.89%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.85 | ||
| P/S | 2.72 | ||
| P/FCF | N/A | ||
| P/OCF | 7.56 | ||
| P/B | 1.93 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)3.54
EY5.43%
EPS(NY)3.87
Fwd EY5.93%
FCF(TTM)-3.15
FCFYN/A
OCF(TTM)8.62
OCFY13.24%
SpS23.97
BVpS33.7
TBVpS33.7
PEG (NY)2.9
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 9.72% | ||
| ROCE | 4.24% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 3.42% | ||
| OM | 19.52% | ||
| PM (TTM) | 13.67% | ||
| GM | 92.3% | ||
| FCFM | N/A |
ROA(3y)2.79%
ROA(5y)2.76%
ROE(3y)10.23%
ROE(5y)10.23%
ROIC(3y)3.37%
ROIC(5y)3.41%
ROICexc(3y)3.38%
ROICexc(5y)3.42%
ROICexgc(3y)3.38%
ROICexgc(5y)3.42%
ROCE(3y)4.34%
ROCE(5y)4.37%
ROICexcg growth 3Y1.27%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y1.27%
ROICexc growth 5Y-1.15%
OM growth 3Y-0.26%
OM growth 5Y1.31%
PM growth 3Y-0.82%
PM growth 5Y2.67%
GM growth 3Y-1.55%
GM growth 5Y-0.66%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.04 | ||
| Cap/Depr | 241.55% | ||
| Cap/Sales | 49.12% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 90.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.95 |
F-Score5
WACC6.67%
ROIC/WACC0.5
Cap/Depr(3y)199.23%
Cap/Depr(5y)215.49%
Cap/Sales(3y)34.37%
Cap/Sales(5y)37.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.63%
EPS 3Y6.73%
EPS 5Y6.47%
EPS Q2Q%1.63%
EPS Next Y6.35%
EPS Next 2Y6.94%
EPS Next 3Y7.4%
EPS Next 5Y7.22%
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y7.22%
Revenue growth 5Y4.25%
Sales Q2Q%-0.49%
Revenue Next Year-3.84%
Revenue Next 2Y1.43%
Revenue Next 3Y2.74%
Revenue Next 5Y3.97%
EBIT growth 1Y9.01%
EBIT growth 3Y6.94%
EBIT growth 5Y5.62%
EBIT Next Year109.1%
EBIT Next 3Y37.76%
EBIT Next 5Y26.2%
FCF growth 1Y-138.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.08%
OCF growth 3Y23.21%
OCF growth 5Y11.28%