XCEL ENERGY INC (XEL) Stock Fundamental Analysis
NASDAQ:XEL - Nasdaq - US98389B1008 - Common Stock - Currency: USD
Taking everything into account, XEL scores 3 out of 10 in our fundamental rating. 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.
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's Return On Assets of 2.65% is in line compared to the rest of the industry. XEL outperforms 40.43% of its industry peers.
XEL has a Return On Equity (9.75%) which is in line with its industry peers.
The Return On Invested Capital of XEL (2.82%) is worse than 89.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XEL is significantly below the industry average of 38.54%.
| 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
Looking at the Profit Margin, with a value of 14.10%, XEL is in line with its industry, outperforming 57.45% of the companies in the same industry.
XEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.40%, XEL is doing worse than 70.21% 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.
XEL's Gross Margin of 92.78% is amongst the best of the industry. XEL outperforms 97.87% 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
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
XEL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for XEL is higher compared to a year ago.
2.2 Solvency
XEL has an Altman-Z score of 0.89. This is a bad value and indicates that XEL is not financially healthy and even has some risk of bankruptcy.
XEL has a Altman-Z score (0.89) which is in line with its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that XEL has dependencies on debt financing.
XEL's Debt to Equity ratio of 1.52 is in line compared to the rest of the industry. XEL outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.42
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.80 indicates that XEL may have some problems paying its short term obligations.
With a Current ratio value of 0.80, XEL is not doing good in the industry: 63.83% of the companies in the same industry are doing better.
A Quick Ratio of 0.70 indicates that XEL may have some problems paying its short term obligations.
XEL's Quick ratio of 0.70 is in line compared to the rest of the industry. XEL outperforms 51.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
XEL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.71%.
XEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
XEL shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
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
XEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.11% yearly.
Based on estimates for the next years, XEL will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y10.64%
EPS Next 2Y9.39%
EPS Next 3Y8.92%
EPS Next 5Y8.11%
Revenue Next Year3.83%
Revenue Next 2Y5.14%
Revenue Next 3Y5.53%
Revenue Next 5Y6.09%
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.
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
The Price/Earnings ratio is 19.95, which indicates a rather expensive current valuation of XEL.
Based on the Price/Earnings ratio, XEL is valued a bit more expensive than the industry average as 68.09% of the companies are valued more cheaply.
XEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 16.48, 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.
When comparing the Price/Forward Earnings ratio of XEL to the average of the S&P500 Index (35.19), we can say XEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XEL is valued a bit more expensive than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.93 |
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)1.88
PEG (5Y)3.51
EPS Next 2Y9.39%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
XEL has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
On average, the dividend of XEL grows each year by 6.45%, which is quite nice.
XEL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of XEL decreased recently.
Dividend Growth(5Y)6.45%
Div Incr Years1
Div Non Decr Years1
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 2Y9.39%
EPS Next 3Y8.92%
68.62
+0.17 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change5.53%
Market Cap39.58B
Analysts80
Price Target77.23 (12.55%)
Short Float %1.47%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend2.08
Dividend Growth(5Y)6.45%
DP62.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.89%
Min EPS beat(2)-9.55%
Max EPS beat(2)-8.23%
EPS beat(4)0
Avg EPS beat(4)-6.47%
Min EPS beat(4)-9.55%
Max EPS beat(4)-1.66%
EPS beat(8)2
Avg EPS beat(8)-3.08%
EPS beat(12)4
Avg EPS beat(12)-2.36%
EPS beat(16)6
Avg EPS beat(16)-1.8%
Revenue beat(2)0
Avg Revenue beat(2)-9.9%
Min Revenue beat(2)-18.13%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-9.16%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)-1.66%
Revenue beat(8)0
Avg Revenue beat(8)-10.57%
Revenue beat(12)4
Avg Revenue beat(12)-2.35%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-0.09%
PT rev (3m)3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 16.48 | ||
| P/S | 2.89 | ||
| P/FCF | N/A | ||
| P/OCF | 8.57 | ||
| P/B | 2 | ||
| P/tB | 2 | ||
| EV/EBITDA | 12.93 |
EPS(TTM)3.44
EY5.01%
EPS(NY)4.16
Fwd EY6.07%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)8.01
OCFY11.67%
SpS23.75
BVpS34.34
TBVpS34.34
PEG (NY)1.88
PEG (5Y)3.51
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 | 0.89 |
F-Score4
WACC6.66%
ROIC/WACC0.42
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 Y10.64%
EPS Next 2Y9.39%
EPS Next 3Y8.92%
EPS Next 5Y8.11%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%7.04%
Revenue Next Year3.83%
Revenue Next 2Y5.14%
Revenue Next 3Y5.53%
Revenue Next 5Y6.09%
EBIT growth 1Y-11.51%
EBIT growth 3Y2.7%
EBIT growth 5Y2.48%
EBIT Next Year114.14%
EBIT Next 3Y38.63%
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%