We assign a fundamental rating of 3 out of 10 to XEL. XEL was compared to 46 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
XEL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

XEL has a Return On Assets of 2.42%. This is in the lower half of the industry: XEL underperforms 69.57% of its industry peers.
With a Return On Equity value of 9.04%, XEL is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
The Return On Invested Capital of XEL (2.84%) is worse than 84.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XEL is in line with the industry average of 4.57%.

		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

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.
XEL has a Operating Margin of 18.53%. This is in the lower half of the industry: XEL underperforms 65.22% of its industry peers.
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 (92.94%) is better than 95.65% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for XEL has been increased compared to 1 year ago.
XEL has more shares outstanding than it did 5 years ago.
XEL has a worse debt/assets ratio than last year.

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.
The Altman-Z score of XEL (0.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.64 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 1.64, XEL is in line with its industry, outperforming 41.30% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.64
Debt/FCF	N/A
Altman-Z	0.89

ROIC/WACC0.42

WACC6.73%

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 comparable to the rest of the industry.
XEL has a Quick 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.
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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
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)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

Based on estimates for the next years, XEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.86% on average per year.
XEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.80% yearly.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

XEL is valuated rather expensively with a Price/Earnings ratio of 20.90.
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.
The average S&P500 Price/Earnings ratio is at 28.30. XEL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.27, XEL is valued on the expensive side.
XEL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. XEL is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	20.9
Fwd PE	18.27

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	13.61

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)3.68

EPS Next 2Y9.39%

EPS Next 3Y9.44%

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5. Dividend

5.1 Amount

XEL has a Yearly Dividend Yield of 3.07%.
XEL's Dividend Yield is comparable with the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 1.83, 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

XEL pays out 65.69% of its income as dividend. This is not a sustainable payout ratio.
XEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP65.69%

EPS Next 2Y9.39%

EPS Next 3Y9.44%

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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%.