XCEL ENERGY INC (XEL) Stock Fundamental Analysis
USA - NASDAQ:XEL - US98389B1008 - Common Stock
72.44 USD
+0.39 (+0.54%)
We assign a fundamental rating of 3 out of 10 to XEL. XEL was compared to 48 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 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.
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
With a Return On Assets value of 2.75%, XEL perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
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 worse Return On Invested Capital (2.82%) than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XEL 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
Looking at the Profit Margin, with a value of 14.85%, XEL is in line with its industry, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of XEL has grown nicely.
With a Operating Margin value of 18.00%, XEL is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of XEL has remained more or less at the same level.
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.
XEL's Gross Margin has been stable in the last couple of years.
| 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
XEL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XEL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that XEL is in the distress zone and has some risk of bankruptcy.
XEL has a Altman-Z score (0.93) which 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
WACC6.53%
2.3 Liquidity
A Current Ratio of 0.96 indicates that XEL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, XEL is in line with its industry, outperforming 58.33% of the companies in the same industry.
XEL has a Quick 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.
XEL has a Quick ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
XEL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.69%.
The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
The Revenue has been growing slightly by 1.28% in the past year.
The Revenue has been growing slightly by 3.12% on average over the past years.
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
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.
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.
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
A Price/Earnings ratio of 19.85 indicates a rather expensive valuation of XEL.
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.
XEL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.39, which indicates a rather expensive current valuation of XEL.
The rest of the industry has a similar Price/Forward Earnings ratio as XEL.
When comparing the Price/Forward Earnings ratio of XEL to the average of the S&P500 Index (22.70), we can say XEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
XEL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. XEL is more expensive than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.24 |
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)1.86
PEG (5Y)3.49
EPS Next 2Y9.4%
EPS Next 3Y9%
5. Dividend
5.1 Amount
XEL has a Yearly Dividend Yield of 3.15%.
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
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
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%
NASDAQ:XEL (9/18/2025, 3:24:09 PM)
72.44
+0.39 (+0.54%)
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 Cap42.84B
Analysts80
Price Target78.85 (8.85%)
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 | 19.85 | ||
| Fwd PE | 17.39 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 9.5 | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)3.65
EY5.04%
EPS(NY)4.16
Fwd EY5.75%
FCF(TTM)-6.6
FCFYN/A
OCF(TTM)7.63
OCFY10.53%
SpS23.6
BVpS35.44
TBVpS35.44
PEG (NY)1.86
PEG (5Y)3.49
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
WACC6.53%
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%