NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. More Details
Undervalued with mediocre balance sheet.
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
Stable Share Price: NEP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NEP's weekly volatility (3%) has been stable over the past year.
7 Day Return
US Renewable Energy
1 Year Return
US Renewable Energy
Return vs Industry: NEP exceeded the US Renewable Energy industry which returned 40% over the past year.
Return vs Market: NEP exceeded the US Market which returned 42.6% over the past year.
Long-Term 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
No news available
Is NextEra Energy Partners undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEP ($74.33) is trading below our estimate of fair value ($296.93)
Significantly Below Fair Value: NEP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEP is good value based on its PE Ratio (14.3x) compared to the North American Renewable Energy industry average (29.4x).
PE vs Market: NEP is good value based on its PE Ratio (14.3x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: NEP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NEP is good value based on its PB Ratio (2.3x) compared to the US Renewable Energy industry average (2.6x).
How is NextEra Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEP's earnings are forecast to decline over the next 3 years (-11.7% per year).
Earnings vs Market: NEP's earnings are forecast to decline over the next 3 years (-11.7% per year).
High Growth Earnings: NEP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NEP's revenue (8.6% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: NEP's revenue (8.6% 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 (7.1%).
How has NextEra Energy Partners performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEP has high quality earnings.
Growing Profit Margin: NEP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NEP's earnings have declined by 19.9% per year over the past 5 years.
Accelerating Growth: NEP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NEP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-4%).
Return on Equity
High ROE: NEP's Return on Equity (13%) is considered low.
How is NextEra Energy Partners's financial position?
Financial Position Analysis
Short Term Liabilities: NEP's short term assets ($529.0M) exceed its short term liabilities ($316.0M).
Long Term Liabilities: NEP's short term assets ($529.0M) do not cover its long term liabilities ($4.1B).
Debt to Equity History and Analysis
Debt Level: NEP's debt to equity ratio (46.5%) is considered high.
Reducing Debt: NEP's debt to equity ratio has reduced from 199.3% to 46.5% over the past 5 years.
Debt Coverage: NEP's debt is not well covered by operating cash flow (17.7%).
Interest Coverage: NEP earns more interest than it pays, so coverage of interest payments is not a concern.
What is NextEra Energy Partners's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEP's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: NEP's dividend (3.43%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.7%), NEP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NEP's dividends in 3 years are not forecast to be well covered by earnings (155.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Robo (57 yo)
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 and serves as its Director since 2017. Mr. Robo was the Cha...
Experienced Management: NEP's management team is considered experienced (3.8 years average tenure).
Experienced Board: NEP's board of directors are considered experienced (3.8 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.8%.
NextEra Energy Partners, LP's company bio, employee growth, exchange listings and data sources
- Name: NextEra Energy Partners, LP
- Ticker: NEP
- Exchange: NYSE
- Founded: 2014
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: US$5.641b
- Shares outstanding: 75.89m
- Website: https://www.investor.nexteraenergypartners.com
- NextEra Energy Partners, LP
- 700 Universe Boulevard
- Juno Beach
- United States
NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. The company owns a portfolio of contracted renewable generation assets consisting of wind and ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/24 06:10|
|End of Day Share Price||2021/06/23 00:00|
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.