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XEL

Xcel Energy NasdaqGS:XEL Stock Report

Last Price

US$68.91

Market Cap

US$37.7b

7D

-5.0%

1Y

10.0%

Updated

28 Sep, 2022

Data

Company Financials +
XEL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health0/6
Dividends4/6

XEL Stock Overview

Xcel Energy Inc., through its subsidiaries, generates, purchases, transmits, distributes, and sells electricity.

Xcel Energy Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Xcel Energy
Historical stock prices
Current Share PriceUS$68.91
52 Week HighUS$77.66
52 Week LowUS$61.20
Beta0.35
1 Month Change-8.87%
3 Month Change-2.61%
1 Year Change9.96%
3 Year Change8.79%
5 Year Change44.25%
Change since IPO240.30%

Recent News & Updates

Sep 05

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%

Aug 18
Here's Why Xcel Energy (NASDAQ:XEL) Has A Meaningful Debt Burden

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...

Aug 17

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

XELUS Electric UtilitiesUS Market
7D-5.0%-4.2%-2.0%
1Y10.0%4.3%-20.3%

Return vs Industry: XEL exceeded the US Electric Utilities industry which returned 4.2% over the past year.

Return vs Market: XEL exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is XEL's price volatile compared to industry and market?
XEL volatility
XEL Average Weekly Movement3.1%
Electric Utilities Industry Average Movement3.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
190911,321Bob Frenzelhttps://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

How do Xcel Energy's earnings and revenue compare to its market cap?
XEL fundamental statistics
Market CapUS$37.69b
Earnings (TTM)US$1.63b
Revenue (TTM)US$14.00b

23.1x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
XEL income statement (TTM)
RevenueUS$14.00b
Cost of RevenueUS$8.57b
Gross ProfitUS$5.43b
Other ExpensesUS$3.80b
EarningsUS$1.63b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.98
Gross Margin38.79%
Net Profit Margin11.66%
Debt/Equity Ratio150.2%

How did XEL perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

63%

Payout Ratio