XCEL ENERGY INC (XEL)
US98389B1008 - Common Stock
We assign a fundamental rating of 4 out of 10 to XEL. XEL was compared to 47 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
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.
XEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of XEL (2.73%) is comparable to the rest of the industry.
The Return On Equity of XEL (10.33%) is better than 71.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.43%, XEL is doing worse than 71.11% of the companies in the same industry.
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 4.67%.
The 3 year average ROIC (3.37%) for XEL is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.33% | ||
| ROIC | 3.43% |
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
The Profit Margin of XEL (13.46%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of XEL has grown nicely.
The Operating Margin of XEL (19.77%) is comparable to the rest of the industry.
XEL's Operating Margin has been stable in the last couple of years.
The Gross Margin of XEL (92.18%) is better than 97.78% of its industry peers.
XEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.77% | ||
| PM (TTM) | 13.46% | ||
| GM | 92.18% |
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.
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
Based on the Altman-Z score of 0.99, we must say that XEL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.99, XEL perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
XEL has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of XEL (1.59) is worse than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.51
WACC6.69%
2.3 Liquidity
XEL has a Current Ratio of 0.97. This is a bad value and indicates that XEL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.97, XEL is in line with its industry, outperforming 51.11% of the companies in the same industry.
XEL has a Quick Ratio of 0.97. This is a bad value and indicates that XEL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, XEL is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
XEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.63%, which is quite good.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.47% yearly.
The Revenue has decreased by -7.21% in the past year.
The Revenue has been growing slightly by 4.25% on average over the past years.
EPS 1Y (TTM)10.63%
EPS 3Y6.73%
EPS 5Y6.47%
EPS Q2Q%1.63%
Revenue 1Y (TTM)-7.21%
Revenue growth 3Y7.22%
Revenue growth 5Y4.25%
Sales Q2Q%-0.49%
3.2 Future
The Earnings Per Share is expected to grow by 6.71% on average over the next years.
XEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.16% yearly.
EPS Next Y6.4%
EPS Next 2Y7.01%
EPS Next 3Y7.3%
EPS Next 5Y6.71%
Revenue Next Year-4.43%
Revenue Next 2Y1.4%
Revenue Next 3Y2.59%
Revenue Next 5Y4.16%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.17 indicates a rather expensive valuation of XEL.
Based on the Price/Earnings ratio, XEL is valued a bit more expensive than 66.67% of the companies in the same industry.
XEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.29.
The Price/Forward Earnings ratio is 18.45, which indicates a rather expensive current 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, XEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XEL indicates a slightly more expensive valuation: XEL is more expensive than 64.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.46 |
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.
The decent profitability rating of XEL may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)3.12
EPS Next 2Y7.01%
EPS Next 3Y7.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, XEL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.39, XEL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, XEL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of XEL grows each year by 6.72%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.72%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
60.97% of the earnings are spent on dividend by XEL. This is not a sustainable payout ratio.
The dividend of XEL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.97%
EPS Next 2Y7.01%
EPS Next 3Y7.3%
XCEL ENERGY INC
NASDAQ:XEL (11/25/2024, 2:54:29 PM)
71.4089
+0.06 (+0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.15
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.77% | ||
| PM (TTM) | 13.46% | ||
| GM | 92.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.63%
EPS 3Y6.73%
EPS 5Y
EPS Q2Q%
EPS Next Y6.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.21%
Revenue growth 3Y7.22%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y