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%)
Taking everything into account, XEL scores 3 out of 10 in our fundamental rating. XEL was compared to 48 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. XEL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XEL had positive earnings in the past year.
XEL had a positive operating cash flow in the past year.
XEL had positive earnings in each of the past 5 years.
In the past 5 years XEL always reported a positive cash flow from operatings.
1.2 Ratios
XEL has a Return On Assets of 2.75%. This is comparable to the rest of the industry: XEL outperforms 45.83% of its industry peers.
With a Return On Equity value of 9.89%, XEL perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
XEL has a Return On Invested Capital of 2.82%. This is amonst the worse of the industry: XEL underperforms 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
XEL has a Profit Margin of 14.85%. This is comparable to the rest of the industry: XEL outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of XEL has grown nicely.
XEL's Operating Margin of 18.00% is on the low side compared to the rest of the industry. XEL is outperformed by 68.75% of its industry peers.
XEL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 92.80%, XEL belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
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
XEL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, XEL has more shares outstanding
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
XEL has an Altman-Z score of 0.93. This is a bad value and indicates that XEL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of XEL (0.93) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that XEL has dependencies on debt financing.
XEL has a worse Debt to Equity ratio (1.53) 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
WACC6.57%
2.3 Liquidity
XEL has a Current Ratio of 0.96. 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 (0.96) is comparable to the rest of the industry.
A Quick Ratio of 0.85 indicates that XEL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, XEL is in line with its industry, outperforming 58.33% of the companies in the same industry.
| 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.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.76, the valuation of XEL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of XEL indicates a slightly more expensive valuation: XEL is more expensive than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. XEL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.31 indicates a rather expensive valuation of XEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XEL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of XEL to the average of the S&P500 Index (22.86), we can say XEL is valued slightly cheaper.
| 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 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, XEL has a dividend in line with its industry peers.
XEL's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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.
XEL has decreased its dividend recently.
Dividend Growth(5Y)6.45%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
59.09% of the earnings are spent on dividend by XEL. This is a bit on the high side, but may be sustainable.
The dividend of XEL is growing, but earnings are growing more, so the dividend growth is 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)2.01%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.89%
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 | 13.26 |
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
WACC6.57%
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%