76.25 USD
-0.08 (-0.1%)
Taking everything into account, XEL scores 3 out of 10 in our fundamental rating. XEL was compared to 46 industry peers in the Electric Utilities industry. XEL has a medium profitability rating, but doesn't score so well on its financial health evaluation. XEL is quite expensive at the moment. It does show a decent growth rate.
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.
- XEL had positive earnings in each of the past 5 years.
- Each year in the past 5 years XEL had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.42%, XEL is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 9.04%, XEL is doing worse than 65.22% of the companies in the same industry.
- With a Return On Invested Capital value of 2.84%, XEL is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for XEL is in line with the industry average of 4.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 9.04% | ||
| ROIC | 2.84% |
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 (13.46%) which is in line with its industry peers.
- XEL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 18.53%, XEL is doing worse than 65.22% of the companies in the same industry.
- XEL's Operating Margin has been stable in the last couple of years.
- XEL's Gross Margin of 92.94% is amongst the best of the industry. XEL outperforms 95.65% of its industry peers.
- XEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.53% | ||
| PM (TTM) | 13.46% | ||
| GM | 92.94% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XEL 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 0.89, we must say that XEL is in the distress zone and has some risk of bankruptcy.
- XEL has a Altman-Z score (0.89) which is comparable to the rest of the industry.
- XEL has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
- XEL has a Debt to Equity ratio of 1.64. This is comparable to the rest of the industry: XEL outperforms 41.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.42
WACC6.71%
2.3 Liquidity
- XEL has a Current Ratio of 0.79. 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 (0.79) which is in line with its industry peers.
- A Quick Ratio of 0.69 indicates that XEL may have some problems paying its short term obligations.
- The Quick ratio of XEL (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.82% over the past year.
- Measured over the past 5 years, XEL shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
- The Revenue has been growing slightly by 3.38% in the past year.
- The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)2.82%
EPS 3Y5.54%
EPS 5Y5.68%
EPS Q2Q%-0.8%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y0.02%
Revenue growth 5Y3.12%
Sales Q2Q%7.44%
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 8.86% yearly.
- Based on estimates for the next years, XEL will show a small growth in Revenue. The Revenue will grow by 5.80% on average per year.
EPS Next Y10.74%
EPS Next 2Y9.39%
EPS Next 3Y9.44%
EPS Next 5Y8.86%
Revenue Next Year3.2%
Revenue Next 2Y5.34%
Revenue Next 3Y6.12%
Revenue Next 5Y5.8%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- XEL is valuated rather expensively with a Price/Earnings ratio of 20.95.
- Based on the Price/Earnings ratio, XEL is valued a bit more expensive than the industry average as 65.22% 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 28.82.
- XEL is valuated rather expensively with a Price/Forward Earnings ratio of 18.31.
- XEL's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. XEL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, XEL is valued a bit more expensive than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.65 |
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)1.95
PEG (5Y)3.69
EPS Next 2Y9.39%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
- XEL has a Yearly Dividend Yield of 3.07%.
- Compared to an average industry Dividend Yield of 2.90, XEL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, XEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
- On average, the dividend of XEL grows each year by 6.45%, which is quite nice.
- XEL has been paying a dividend for at least 10 years, so it has 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
- 65.69% of the earnings are spent on dividend by XEL. This is not a sustainable payout ratio.
- The dividend of XEL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.69%
EPS Next 2Y9.39%
EPS Next 3Y9.44%
XCEL ENERGY INC / XEL FAQ
Can you provide the ChartMill fundamental rating for XCEL ENERGY INC?
ChartMill assigns a fundamental rating of 3 / 10 to XEL.
What is the valuation status for XEL stock?
ChartMill assigns a valuation rating of 1 / 10 to XCEL ENERGY INC (XEL). This can be considered as Overvalued.
What is the profitability of XEL stock?
XCEL ENERGY INC (XEL) has a profitability rating of 4 / 10.
What is the financial health of XCEL ENERGY INC (XEL) stock?
The financial health rating of XCEL ENERGY INC (XEL) is 1 / 10.
Is the dividend of XCEL ENERGY INC sustainable?
The dividend rating of XCEL ENERGY INC (XEL) is 5 / 10 and the dividend payout ratio is 65.69%.