NYSE:NEP

Stock Analysis Report

NextEra Energy Partners

Executive Summary

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States.

Snowflake


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Share Price & News

How has NextEra Energy Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

NEP

0.9%

US Renewable Energy

0.4%

US Market


1 Year Return

9.5%

NEP

18.9%

US Renewable Energy

6.9%

US Market

Return vs Industry: NEP underperformed the US Renewable Energy industry which returned 18.9% over the past year.

Return vs Market: NEP exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

NEPIndustryMarket
7 Day2.0%0.9%0.4%
30 Day-3.1%1.2%-1.1%
90 Day2.5%10.5%-0.5%
1 Year14.2%9.5%22.9%18.9%9.3%6.9%
3 Year103.5%79.7%64.9%41.1%45.8%36.4%
5 Year80.2%48.8%29.3%-0.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is NextEra Energy Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NextEra Energy Partners undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NEP ($51.6) is trading below our estimate of fair value ($712.01)

Significantly Undervalued: NEP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEP is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

PE vs Market: NEP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NEP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NEP is overvalued based on its PB Ratio (1.7x) compared to the US Renewable Energy industry average (1.4x).

Future Growth

How is NextEra Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: NEP is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: NEP's loss is forecast to worsen by 0% next year.

Revenue vs Market: NEP's revenue (17.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NEP's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NEP's Return on Equity is forecast to be low in 3 years time (9.2%).

Past Performance

How has NextEra Energy Partners performed over the past 5 years?

28.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NEP is unprofitable, but has reduced losses over the past 5 years at a rate of 28.6% per year.

Accelerating Growth: Unable to compare NEP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEP is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (33.9%).


Return on Equity

High ROE: NEP has a negative Return on Equity (-3.83%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NEP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NEP is currently unprofitable, so its Return on Capital Employed is negative.

Financial Health

How is NextEra Energy Partners's financial position?


Financial Position Analysis

Short Term Liabilities: NEP's short term assets ($1.2B) exceeds its short term liabilities ($872.0M)

Long Term Liabilities: NEP's short term assets (1.2B) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: NEP's debt to equity ratio (71.6%) is considered high

Reducing Debt: NEP's debt to equity ratio has reduced from 465.3% to 71.6% over the past 5 years.

Debt Coverage: NEP's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: NEP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: NEP has a high level of physical assets or inventory.

Debt Coverage by Assets: NEP's debt is not covered by short term assets (assets are 0.3x debt).

Dividend

What is NextEra Energy Partners's current dividend yield, its reliability and sustainability?

3.90%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NEP's dividend (3.9%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NEP's dividend (3.9%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: Whilst dividend payments have been stable, NEP has been paying a dividend for less than 10 years.

Growing Dividend: NEP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: NEP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NEP's dividends in 3 years are not forecast to be well covered by earnings (112.5% payout ratio).

Management

What is the CEO of NextEra Energy Partners's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Jim Robo (56yo)

2.2yrs

Tenure

0

Mr. James L. Robo, also known as Jim, has been Chairman of the Board and Chief Executive Officer of NextEra Energy Partners, LP since August 2017. Mr. Robo was the Chairman and Chief Executive Officer of N ...


Management Age and Tenure

2.2yrs

Average Tenure

48yo

Average Age

Experienced Management: NEP's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

Experienced Board: NEP's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jim Robo (56yo)

    Chairman & CEO

    • Tenure: 2.2yrs
  • Paul Cutler (59yo)

    Treasurer & Assistant Secretary

    • Tenure: 2.2yrs
  • Charles Sieving (46yo)

    General Counsel

    • Tenure: 2.2yrs
  • John Ketchum (48yo)

    President & Director

    • Tenure: 2.2yrs
  • Rebecca Kujawa (43yo)

    CFO & Director

    • Tenure: 0.6yrs
  • Mark Hickson (51yo)

    Executive VP of Strategy & Corporate Development and Director

    • Tenure: 2.2yrs
  • William Seeley

    Corporate Secretary of Nextera Energy Partners GP Inc

    • Tenure: 0yrs
  • Matthew Roskot

    Director of Investor Relations

    • Tenure: 0yrs
  • James May (42yo)

    Controller & Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Jim Robo (56yo)

    Chairman & CEO

    • Tenure: 2.2yrs
  • Bob Byrne (57yo)

    Director

    • Tenure: 0.8yrs
  • Peter Kind (62yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$195.09k
  • John Ketchum (48yo)

    President & Director

    • Tenure: 2.2yrs
  • Susan Austin (52yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$180.09k
  • Rebecca Kujawa (43yo)

    CFO & Director

    • Tenure: 0.6yrs
  • Mark Hickson (51yo)

    Executive VP of Strategy & Corporate Development and Director

    • Tenure: 2.2yrs

Company Information

NextEra Energy Partners, LP's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • NextEra Energy Partners, LP
  • 700 Universe Boulevard
  • Juno Beach
  • Florida
  • 33408
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEPNYSE (New York Stock Exchange)YesCommon UnitsUSUSDJun 2014
1N6DB (Deutsche Boerse AG)YesCommon UnitsDEEURJun 2014

Biography

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets consisting of wind and solar pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:20
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.