Xcel Energy Inc. Fundamental Analysis (NASDAQ: XEL)
Xcel Energy Inc. (NASDAQ: XEL) shows moderate financial fundamentals with a PE ratio of 21.59, profit margin of 15.28%, and ROE of 9.64%. The company generates $14.6B in annual revenue with moderate year-over-year growth of 9.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze XEL's fundamental strength across five key dimensions:
Efficiency Score
WeakXEL struggles to generate sufficient returns from assets.
Valuation Score
ModerateXEL shows balanced valuation metrics.
Growth Score
ModerateXEL shows steady but slowing expansion.
Financial Health Score
WeakXEL carries high financial risk with limited liquidity.
Profitability Score
WeakXEL struggles to sustain strong margins.
Key Financial Metrics
Is XEL Expensive or Cheap?
P/E Ratio
XEL trades at 21.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, XEL's PEG of 15.63 indicates potential overvaluation.
Price to Book
The market values Xcel Energy Inc. at 2.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.71 times EBITDA. This is generally considered low.
How Well Does XEL Make Money?
Net Profit Margin
For every $100 in sales, Xcel Energy Inc. keeps $15.28 as profit after all expenses.
Operating Margin
Core operations generate 20.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.64 in profit for every $100 of shareholder equity.
ROA
Xcel Energy Inc. generates $2.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Xcel Energy Inc. generates strong operating cash flow of $4.77B, reflecting robust business health.
Free Cash Flow
Xcel Energy Inc. generates weak or negative free cash flow of $-7.69B, restricting financial flexibility.
FCF Per Share
Each share generates $-12.31 in free cash annually.
FCF Yield
XEL converts -15.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How XEL Stacks Against Its Sector Peers
| Metric | XEL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.59 | 20.43 | Neutral |
| ROE | 9.64% | 1037.00% | Weak |
| Net Margin | 15.28% | -667.00% (disorted) | Strong |
| Debt/Equity | 1.68 | 1.68 | Neutral |
| Current Ratio | 0.70 | 1.72 | Weak Liquidity |
| ROA | 2.56% | 4578092.00% | Weak |
XEL outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Xcel Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.26%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
23.00%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
28.71%
Industry Style: Defensive, Dividend, Income
High Growth