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NEP

NextEra Energy Partners NYSE:NEP Stock Report

Last Price

US$76.53

Market Cap

US$6.4b

7D

10.2%

1Y

2.7%

Updated

27 Jun, 2022

Data

Company Financials +
NEP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends1/6

NEP Stock Overview

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

NextEra Energy Partners Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NextEra Energy Partners
Historical stock prices
Current Share PriceUS$76.53
52 Week HighUS$88.80
52 Week LowUS$61.31
Beta0.92
1 Month Change5.97%
3 Month Change-6.97%
1 Year Change2.70%
3 Year Change59.11%
5 Year Change106.73%
Change since IPO139.16%

Recent News & Updates

May 06

NextEra Energy Partners Is A Buy; Don't Worry About The Tariff Investigations

At the end of March, the U.S. Department of Commerce announced it was opening an investigation into anti-dumping circumvention related to solar cells from Southeast Asia. Solar and renewable energy stocks have fallen between 10% and 20% on the back of the announcement, outpacing the S&P 500's 8.5% decline. NextEra Energy Partners has been hit particularly hard, down over 20% since the announcement. We’ve been buying shares below $70. The stock now yields 4.5% and management has reiterated its confidence that the distribution can grow 12% to 15% for at least the next 2.5 years.

Shareholder Returns

NEPUS Renewable EnergyUS Market
7D10.2%4.3%6.3%
1Y2.7%-8.6%-18.8%

Return vs Industry: NEP exceeded the US Renewable Energy industry which returned -7.9% over the past year.

Return vs Market: NEP exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is NEP's price volatile compared to industry and market?
NEP volatility
NEP Average Weekly Movement5.3%
Renewable Energy Industry Average Movement11.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: NEP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NEP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aJohn Ketchumhttps://www.investor.nexteraenergypartners.com

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 projects, as well as contracted natural gas pipeline assets. NextEra Energy Partners, LP was incorporated in 2014 and is headquartered in Juno Beach, Florida.

NextEra Energy Partners Fundamentals Summary

How do NextEra Energy Partners's earnings and revenue compare to its market cap?
NEP fundamental statistics
Market CapUS$6.42b
Earnings (TTM)US$79.00m
Revenue (TTM)US$1.02b

81.3x

P/E Ratio

6.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEP income statement (TTM)
RevenueUS$1.02b
Cost of RevenueUS$441.00m
Gross ProfitUS$576.00m
Other ExpensesUS$497.00m
EarningsUS$79.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.94
Gross Margin56.64%
Net Profit Margin7.77%
Debt/Equity Ratio50.9%

How did NEP perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

279%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEP?

Other financial metrics that can be useful for relative valuation.

NEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue20x
Enterprise Value/EBITDA31x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does NEP's PE Ratio compare to its peers?

NEP PE Ratio vs Peers
The above table shows the PE ratio for NEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average125.9x
ORA Ormat Technologies
63.7x20.2%US$4.2b
MNTK Montauk Renewables
184.1x38.7%US$1.6b
AMPS Altus Power
17x-41.9%US$1.1b
CWEN.A Clearway Energy
238.8x22.1%US$6.8b
NEP NextEra Energy Partners
81.3x26.2%US$6.4b

Price-To-Earnings vs Peers: NEP is good value based on its Price-To-Earnings Ratio (81.3x) compared to the peer average (125.9x).


Price to Earnings Ratio vs Industry

How does NEP's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

Price-To-Earnings vs Industry: NEP is expensive based on its Price-To-Earnings Ratio (81.3x) compared to the US Renewable Energy industry average (61.8x)


Price to Earnings Ratio vs Fair Ratio

What is NEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio81.3x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: NEP is expensive based on its Price-To-Earnings Ratio (81.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).


Share Price vs Fair Value

What is the Fair Price of NEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEP ($76.53) is trading below our estimate of fair value ($259.49)

Significantly Below Fair Value: NEP is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NEP is poor value based on its PEG Ratio (3.1x)


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Future Growth

How is NextEra Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEP's forecast earnings growth (26.2% per year) is above the savings rate (1.9%).

Earnings vs Market: NEP's earnings (26.2% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: NEP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NEP's revenue (19.8% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: NEP's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEP's Return on Equity is forecast to be low in 3 years time (7.7%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEP has high quality earnings.

Growing Profit Margin: NEP's current net profit margins (7.8%) are lower than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: NEP's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: NEP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEP had negative earnings growth (-78.6%) over the past year, making it difficult to compare to the Renewable Energy industry average (-12.6%).


Return on Equity

High ROE: NEP's Return on Equity (1.6%) is considered low.


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Financial Health

How is NextEra Energy Partners's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NEP's short term assets ($1.3B) exceed its short term liabilities ($800.0M).

Long Term Liabilities: NEP's short term assets ($1.3B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: NEP's net debt to equity ratio (49.4%) is considered high.

Reducing Debt: NEP's debt to equity ratio has reduced from 176.8% to 50.9% over the past 5 years.

Debt Coverage: NEP's debt is not well covered by operating cash flow (12%).

Interest Coverage: NEP's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NEP's dividend (3.83%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NEP's dividend (3.83%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (279.5%), NEP's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (155.6%), NEP's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

John Ketchum (50 yo)

0.25

Tenure

Mr. John W. Ketchum has been the Chairman of NextEra Energy Partners, LP since April 20, 2022. He serves as President, Chief Executive Officer & Director at NextEra Energy, Inc. since March 1, 2022. He ser...


Leadership Team

Experienced Management: NEP's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: NEP's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Top Shareholders

Company Information

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


Key Information


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.