| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 0/6 |
| Dividends | 4/6 |
XEL Stock Overview
Xcel Energy Inc., through its subsidiaries, generates, purchases, transmits, distributes, and sells electricity.
Rewards
Risk Analysis
Xcel Energy Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$65.36 |
| 52 Week High | US$77.66 |
| 52 Week Low | US$61.61 |
| Beta | 0.35 |
| 1 Month Change | -12.49% |
| 3 Month Change | -10.01% |
| 1 Year Change | 4.58% |
| 3 Year Change | 2.99% |
| 5 Year Change | 37.37% |
| Change since IPO | 222.77% |
Recent News & Updates
Xcel Energy: Shelter In The Storm
Summary An epic battle between high inflation and slow growth has left investors scrambling for safety and return. At the same time, the threats of geopolitical conflict and climate change have introduced new investment risks. Under these circumstances, investors might consider boring electric utilities, given their protection by regulators. Fed Chairman Powell's remarks at the Jackson Hole Economic Symposium on August 26th framed what most of us hope won't come to pass. "Restoring price stability will likely require maintaining a restrictive policy stance for some time," Powell said. "The historical record cautions strongly against prematurely loosening policy." … "Lowering inflation to the 2% target is the central bank's "overarching focus right now" even though consumers and businesses will feel economic pain." … Another "unusually large" increase in the benchmark lending rate could be appropriate when officials gather next month, though he stopped short of committing to one." By way of quick digression, I continue to thump my head over what's going on with our inverted yield curve - something is seriously askew when T-bills trade materially higher rates than the 30-year. I posit that the Treasury and Fed are "signaling" to borrowers to lock-in long-term financing before the Fed raises short-term rates again and, working with the Treasury, increase withdrawals of liquidity from the system, as in "quantitative tightening". Something more than a mild recession is possible. Disruptive Change Compared to decades of accommodative monetary policy, the Chairman hints at potentially "disruptive change" requiring, "high-level strategic responses from company leadership to ensure their company can survive long-term." Sensing this, the markets reacted swiftly with all major U.S. indexes - the Dow, S&P, and NASDAQ - falling by well over 5% over the last 6 trading days, alarming. ^DJI data by YCharts Couple this with disruptive geopolitical and climate changes that are upon us: a) Russia invading Ukraine and then further escalating those matters by withholding energy supplies from NATO countries, and b) profound effects of global warming framed by NOAA's vast longitudinal research and outlined in my last article for SA - melting glaciers, rising seas, disappearing rivers, draining reservoirs, unabating fires, and wildlife under threat. In passing, I'd point out that these two disruptive changes are, in a way, reciprocals of one another insofar as the "weaponization" of oil and (natural)gas will hasten the conversion to renewable energy. Electric Utilities In an earlier SA article, I observed that, as in baseball, "We investors have a lot coming at us amidst the din of crowd noise and glare of sunlight. …and occasionally, it's worthwhile to pause and ask where companies are on their trajectories." Now is just such a time as we have seen with most sectors hit and hit hard - chips, streaming, hospitality, real estate, durable goods, staples, retail, the list goes on. However, a few sectors are weathering the market turbulence comparatively well, among them, utilities. Why? - Because utilities serve to inelastic demand as regulated - meaning also protected - by public utility commissions (PUCs). I draw your attention to the largest utility sector ETF in the U.S., State Street's SPDR Fund (XLU) with $18 billion in assets under management. Here, you can see that this fund has far outperformed the major US indexes, by 21+% in absolute value, since market turbulence really set in at the beginning of this year. XLU data by YCharts Xcel Energy For those who are not stock pickers, XLU is an investment option worth considering if you buy into the thesis of this article. However, I am a stock picker and therefore focused on attempting to identify the best of the best which includes Xcel Energy (XEL) among electric utility companies. I favor Xcel for experiential, strategic, and financial reasons. Peter Lynch, the genius behind Fidelity's Magellan Fund advised, "Buy what you know". We know Xcel as our home utility and are impressed for various reasons, including: Their reliability and responsiveness when components of the system go down for whatever the reason, complete with a slice-n-dice outage map and online reporting and status functionality. Their monthly statement that tracks kilowatt usage, relative to average outdoor temperatures, and as compared to neighbors recognizing that there are legitimate differences in electricity consumption, for example, among those who maintain second homes and/or drive EVs (we don't). Their alliance with the "Center for Energy and Environment" which, for a nominal fee, will conduct an energy "audit" confirming progress made toward energy efficiency and pointing out areas for improvement, such as the insulation in our attached-garage - walls, ceiling, and door - with abysmally low R-values. Our experience with Xcel extends to confidence we have in their strategy as demonstrated in two key areas: 1) Their progress toward clean energy, including with a voluntary payment program, to which we contribute, helping the company with its conversion to wind power (and for which we receive periodically a "dividend"), and 2) Their use of advanced tools and techniques including company controlled remote "lock" thermostats to balance the supply and demand of energy during peak-load weather events to protect their grid/and our availability of electricity. Xcel is a forward-thinking operator. Return of Investment As reflected in their low betas - XEL's is .58 - utility companies are not swing-for-the fences growth investments of the kind to which I'm occasionally drawn. Then again, in these times, one must be realistic including with diversification in the tried-and-true. Xcel's financials are utility-like right through their P&L, over into cash flow, and across their balance sheet. Compliments of SA, here are some core numbers: Xcel Energy 2021/2020 Revenue/Growth $13.4B/+16.5% Op. Income/Growth $2.1B/+1.8% Net Income/Growth $1.6B/+8.4% Op. Cash Flow/Growth $2.2B/-23.1% Liquidity/Current Ratio 0.8x Capital/Liabs. to Equity 2.7x Price-to-Earnings Ratio 23.5x Dividend Yield 2.6% Payout Ratio 58.6%
Here's Why Xcel Energy (NASDAQ:XEL) Has A Meaningful Debt Burden
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Xcel Energy declares $0.4875 dividend
Xcel Energy (NASDAQ:XEL) declares $0.4875/share quarterly dividend, in line with previous. Forward yield 2.53% Payable Oct. 20; for shareholders of record Sept. 15; ex-div Sept. 14. See XEL Dividend Scorecard, Yield Chart, & Dividend Growth.
Shareholder Returns
| XEL | US Electric Utilities | US Market | |
|---|---|---|---|
| 7D | -9.8% | -7.7% | -3.1% |
| 1Y | 4.6% | 0.8% | -21.5% |
Return vs Industry: XEL matched the US Electric Utilities industry which returned 4.3% over the past year.
Return vs Market: XEL exceeded the US Market which returned -20.3% over the past year.
Price Volatility
| XEL volatility | |
|---|---|
| XEL Average Weekly Movement | 3.1% |
| Electric Utilities Industry Average Movement | 3.2% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: XEL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: XEL's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1909 | 11,321 | Bob Frenzel | https://www.xcelenergy.com |
Xcel Energy Inc., through its subsidiaries, generates, purchases, transmits, distributes, and sells electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse, and wind energy sources.
Xcel Energy Inc. Fundamentals Summary
| XEL fundamental statistics | |
|---|---|
| Market Cap | US$35.75b |
| Earnings (TTM) | US$1.63b |
| Revenue (TTM) | US$14.00b |
21.9x
P/E Ratio2.6x
P/S RatioIs XEL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| XEL income statement (TTM) | |
|---|---|
| Revenue | US$14.00b |
| Cost of Revenue | US$8.57b |
| Gross Profit | US$5.43b |
| Other Expenses | US$3.80b |
| Earnings | US$1.63b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.98 |
| Gross Margin | 38.79% |
| Net Profit Margin | 11.66% |
| Debt/Equity Ratio | 150.2% |
How did XEL perform over the long term?
See historical performance and comparison