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Xcel Energy Inc (XEL)
NASDAQ:XEL
Top Page
Xcel Energy
(NASDAQ:XEL)69Neutral
Positive Factors
Capital Plan and Investment Opportunities
Xcel Energy has identified over $10 billion of additional capital investment opportunities above the base plan.
Earnings and Growth Potential
XEL expects to be in the upper end of its revised EPS growth rate of 6-8%, which is an increase from the previous 5-7%.
Market Valuation and Rating
Shares are believed to re-rate to a high-single-digit premium to the electric utility group due to its above-average EPS growth rate.
Negative Factors
Past Performance and Earnings
2024 results were modestly disappointing, with ongoing EPS of $3.50 being at the low end of the guidance range.
Wildfire Liabilities and Risks
Wildfire liabilities have weighed on XEL, indicating potential challenges that have impacted the company's valuation.
Xcel Energy (XEL) vs. S&P 500 (SPY)
Market Cap
$41.43B
Dividend Yield3.04%
Average Volume (3M)3.54M
Price to Earnings (P/E)21.0
Beta (1Y)0.07
Revenue Growth-5.25%
EPS Growth7.11%
CountryUS
Employees11,311
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)3.43
Shares Outstanding574,552,700
10 Day Avg. Volume3,714,578
30 Day Avg. Volume3,543,571
Financial Highlights & Ratios
PEG Ratio2.95
Price to Book (P/B)N/A
Price to Sales (P/S)3.01
Price to Cash Flow (P/CF)6.00
P/FCF Ratio37.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$73.13Price Target Upside4.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Xcel Energy Business Overview & Revenue Model
Company DescriptionXcel Energy Inc. is a major U.S. electric and natural gas utility company headquartered in Minneapolis, Minnesota. It operates primarily in the Western and Midwestern United States, serving millions of customers across eight states including Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company is engaged in the generation, transmission, and distribution of electricity as well as the transportation and distribution of natural gas. Xcel Energy is dedicated to providing reliable and affordable energy solutions while focusing on sustainable and renewable energy sources to minimize environmental impact.
How the Company Makes MoneyXcel Energy makes money primarily through its regulated utility operations, which include the generation, transmission, and distribution of electricity and natural gas. The company's revenue model is largely based on customer rates approved by state public utility commissions, which allow Xcel Energy to recover costs and earn a regulated return on its investments in infrastructure and service improvements. Key revenue streams include electricity sales to residential, commercial, and industrial customers, as well as natural gas sales and transportation services. Xcel Energy's earnings are also influenced by its ongoing investments in renewable energy projects, such as wind and solar farms, which are supported by government incentives and long-term power purchase agreements. These projects not only contribute to revenue but also help the company meet regulatory requirements for renewable energy usage. Additionally, Xcel Energy may benefit from strategic partnerships and collaborations that enhance its capacity to deliver innovative energy solutions.
Xcel Energy Financial Statement Overview
Summary
Xcel Energy shows strong financial stability with consistent profitability and efficient capital management. However, moderate revenue growth and fluctuating Free Cash Flow suggest areas for improvement to enhance long-term value.Income Statement
Xcel Energy has demonstrated consistent profitability with a strong Gross Profit Margin and stable EBIT and EBITDA margins. However, the Revenue Growth Rate has shown some fluctuations over the years, indicating a need for attention to growth strategies.75
Positive
Balance Sheet
The company maintains a reasonable Debt-to-Equity Ratio, reflecting stable financial leverage. Return on Equity is solid, showcasing effective utilization of equity capital. The Equity Ratio suggests a balanced mix of equity and debt financing, which is typical for the industry.70
Positive
Cash Flow
Xcel Energy's Cash Flow metrics indicate a healthy Operating Cash Flow, although Free Cash Flow has experienced volatility. The Operating Cash Flow to Net Income Ratio is strong, ensuring adequate cash generation from operations, but improvements in Free Cash Flow management could enhance financial flexibility.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.44B | 14.21B | 15.31B | 13.43B | 11.53B | Gross Profit |
| 6.15B | 5.93B | 5.86B | 5.26B | 4.96B | EBIT |
| 2.39B | 2.48B | 2.43B | 2.20B | 2.12B | EBITDA |
| 5.53B | 5.20B | 5.01B | 4.46B | 4.19B | Net Income Common Stockholders |
| 1.94B | 1.77B | 1.74B | 1.60B | 1.47B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 179.00M | 129.00M | 111.00M | 166.00M | 129.00M | Total Assets |
| 70.03B | 64.08B | 61.19B | 57.85B | 53.96B | Total Debt |
| 29.51B | 27.51B | 26.03B | 24.74B | 22.21B | Net Debt |
| 29.33B | 27.39B | 25.92B | 24.57B | 22.08B | Total Liabilities |
| 50.51B | 46.46B | 44.51B | 42.24B | 39.38B | Stockholders Equity |
| 19.52B | 17.62B | 16.68B | 15.61B | 14.57B |
| Cash Flow | Free Cash Flow | |||
| 5.61B | -527.00M | -706.00M | -2.06B | -2.52B | Operating Cash Flow |
| 4.64B | 5.33B | 3.93B | 2.19B | 2.85B | Investing Cash Flow |
| -7.43B | -5.93B | -4.65B | -4.29B | -4.74B | Financing Cash Flow |
| 2.84B | 617.00M | 666.00M | 2.13B | 1.77B |
Xcel Energy Technical Analysis
Positive
70.03
Price Trends
67.43
Positive
67.07
Positive
62.08
Positive
Market Momentum
1.10
Negative
55.97
Neutral
72.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XEL, the sentiment is Positive. The current price of 70.03 is above the 20-day moving average (MA) of 69.02, above the 50-day MA of 67.43, and above the 200-day MA of 62.08, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XEL.
Xcel Energy Risk Analysis
Xcel Energy disclosed 33 risk factors in its most recent earnings report. Xcel Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xcel Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
74 Outperform | $35.42B | 19.49 | 8.29% | 3.21% | 4.23% | -27.02% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
69 Neutral | $41.43B | 20.97 | 9.92% | 3.04% | -5.25% | 7.11% | |
67 Neutral | $145.74B | 21.00 | 9.07% | 2.95% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
XEL
Xcel Energy
70.03
23.38
50.12%
AEP
American Electric Power
105.24
24.43
30.23%
ED
Consolidated Edison
102.15
15.33
17.66%
DUK
Duke Energy
116.41
25.84
28.53%
NEE
NextEra Energy
70.85
16.84
31.18%
SO
Southern Co
89.89
23.61
35.62%
Xcel Energy Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 3.06% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of achievements in renewable energy projects and infrastructure investments, while also highlighting challenges such as increased operational costs and higher interest expenses. The company's strong track record in meeting guidance and achieving milestones in renewable energy projects was offset by earnings below the midpoint for the first time in over 15 years.Highlights
Strong Capital Investment
Invested more than $7.5 billion in infrastructure across eight states to support customer energy needs, focusing on advanced technology, reliable grid development, and carbon-free generation.
Ongoing Earnings and Guidance Achievement
Delivered ongoing earnings of $3.50 per share, meeting guidance for the 20th consecutive year, despite challenges.
Renewable Energy Milestones
Phase 1 of Sherco's solar project started commercial operations, positioning it to become the largest solar facility in the Upper Midwest upon completion.
High Wind Fleet Availability
Achieved a wind fleet availability of 97%, marking the best performance in five years and meeting first quartile benchmarks.
Transmission Expansion
Began construction on the final segment of the Colorado Power Pathway project, a 675-mile transmission loop facilitating 5,000 megawatts of energy resources in Eastern Colorado.
Cost Management and Customer Savings
Continuous improvement programs generated nearly $500 million in sustainable savings for customers since 2020. Average residential bills remain below national averages.
Lowlights
Earnings Below Midpoint
For the first time in over 15 years, earnings were below the midpoint of the target range, attributed to investments for resiliency and warmer-than-normal December weather.
Increased Operational Costs
Higher O&M expenses, driven by increased generation maintenance, damage prevention, and storm response, decreased earnings by $0.13 per share.
Higher Interest Expenses
Higher interest charges, net of AFUDC debt, decreased earnings by $0.24 per share due to increased debt levels and higher interest rates.
Depreciation and Amortization Impact
Higher depreciation and amortization reflecting capital investment programs decreased earnings by $0.40 per share.
Company Guidance
In the Xcel Energy 2024 Year End Earnings Conference Call, the company provided comprehensive guidance for 2025, forecasting ongoing earnings per share (EPS) in the range of $3.75 to $3.85, representing a 7% growth at the midpoint from the 2024 ongoing EPS of $3.50. They detailed a $45 billion five-year capital plan, anticipating rate base growth exceeding 9% and targeting long-term EPS growth in the upper half of their 6% to 8% guidance range. Xcel Energy highlighted significant 2024 investments of over $7.5 billion across eight states to enhance infrastructure, including advanced grid technologies and carbon-free generation. The company also emphasized operational resilience, achieving a 97% wind fleet availability, and progress on major projects like the Sherco solar facility and the Colorado Power Pathway. They reaffirmed their commitment to maintaining low customer bills and achieving an 80% carbon reduction by 2030 while addressing sales growth expectations, particularly with data centers and the oil and gas sector, projecting a 3% sales increase in 2025.Xcel Energy Corporate Events
Executive/Board Changes
Xcel Energy Announces Leadership Transition in 2025
Neutral
Mar 3, 2025
On February 25, 2025, Xcel Energy announced the retirement of Timothy O’Connor, Executive Vice President, Chief Operations Officer, effective May 1, 2025. In his place, Michael Lamb will take over as Executive Vice President, Chief Delivery Officer, and Scott Sharp will assume the role of Executive Vice President, Chief Generation Officer. This leadership transition reflects the company’s ongoing commitment to operational excellence and continuity, with both Lamb and Sharp having extensive experience within the company. O’Connor will remain with Xcel Energy to assist with the transition until August 21, 2025.
Executive/Board Changes
Xcel Energy Appoints Devin Stockfish as New Director
Neutral
Jan 23, 2025
On January 20, 2025, Xcel Energy’s Board of Directors elected Devin Stockfish as a new independent director, effective January 23, 2025, increasing the number of directors from 13 to 14. Stockfish, currently the CEO of Weyerhaeuser Company, will serve on the Finance Committee and Operations, Nuclear, Environmental and Safety Committee, receiving compensation consistent with other non-employee directors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.