NextEra Energy Partners
Market Cap
US$5.3b
Last Updated
2021/03/07 00:10 UTC
Data Sources
Company Financials +
Executive Summary
NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. More Details
Rewards
Risk Analysis
Dividend of 3.55% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
Similar Companies
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: NEP's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-4.7%
NEP
-4.1%
US Renewable Energy
-0.4%
US Market
1 Year Return
18.4%
NEP
28.0%
US Renewable Energy
36.2%
US Market
Return vs Industry: NEP underperformed the US Renewable Energy industry which returned 28.2% over the past year.
Return vs Market: NEP underperformed the US Market which returned 36.3% over the past year.
Shareholder returns
| NEP | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.7% | -4.1% | -0.4% |
| 30 Day | -18.4% | -13.9% | -2.3% |
| 90 Day | 10.4% | 5.8% | 5.0% |
| 1 Year | 22.8%18.4% | 32.0%28.0% | 39.1%36.2% |
| 3 Year | 102.7%80.3% | 68.7%55.1% | 48.4%39.0% |
| 5 Year | 227.6%167.4% | 164.5%119.6% | 116.6%92.4% |
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
2 years ago | Simply Wall St
What Should Investors Know About NextEra Energy Partners LP's (NYSE:NEP) Capital Returns?2 years ago | Simply Wall St
Who Owns Most Of NextEra Energy Partners LP (NYSE:NEP)?2 years ago | Simply Wall St
How Financially Strong Is NextEra Energy Partners LP (NYSE:NEP)?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
Below Fair Value: NEP ($69.26) is trading below our estimate of fair value ($413.2)
Significantly Below Fair Value: 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 US 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
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 good value based on its PB Ratio (2.2x) compared to the US Renewable Energy industry average (2.5x).
Next Steps
Future Growth
How is NextEra Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
33.3%
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%).
Earnings vs Market: NEP is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NEP's is expected to become profitable in the next 3 years.
Revenue vs Market: NEP's revenue (14.4% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: NEP's revenue (14.4% 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 (9.6%).
Next Steps
Past Performance
How has NextEra Energy Partners performed over the past 5 years?
-47.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEP is currently unprofitable.
Growing Profit Margin: NEP is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NEP is unprofitable, and losses have increased over the past 5 years at a rate of 47.7% 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 (-70.2%).
Return on Equity
High ROE: NEP has a negative Return on Equity (-3.09%), as it is currently unprofitable.
Next Steps
Financial Health
How is NextEra Energy Partners's financial position?
Financial Position Analysis
Short Term Liabilities: NEP's short term assets ($414.0M) exceed its short term liabilities ($350.0M).
Long Term Liabilities: NEP's short term assets ($414.0M) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: NEP's debt to equity ratio (54.4%) is considered high.
Reducing Debt: NEP's debt to equity ratio has reduced from 186.2% to 54.4% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable NEP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NEP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.2% per year.
Next Steps
Dividend
What is NextEra Energy Partners's current dividend yield, its reliability and sustainability?
3.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEP's dividend (3.55%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: NEP's dividend (3.55%) is low compared to the top 25% of dividend payers in the US market (3.64%).
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 6 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 (147.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Jim Robo (57 yo)
3.58yrs
Tenure
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...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.58yrs | no data | 0.25% $ 13.3m | |
| President & Director | 3.58yrs | no data | 0.021% $ 1.1m | |
| CFO & Director | 2yrs | no data | 0.0098% $ 516.7k | |
| Controller & Chief Accounting Officer | 2yrs | no data | 0.0011% $ 57.8k | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel | 3.58yrs | no data | 0.040% $ 2.1m | |
| Executive VP of Strategy & Corporate Development and Director | 3.58yrs | no data | 0.019% $ 998.7k | |
| Treasurer & Assistant Secretary | 3.58yrs | no data | 0.054% $ 2.9m | |
| Corporate Secretary | no data | no data | no data |
3.6yrs
Average Tenure
49yo
Average Age
Experienced Management: NEP's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.58yrs | no data | 0.25% $ 13.3m | |
| President & Director | 3.58yrs | no data | 0.021% $ 1.1m | |
| CFO & Director | 2yrs | no data | 0.0098% $ 516.7k | |
| Executive VP of Strategy & Corporate Development and Director | 3.58yrs | no data | 0.019% $ 998.7k | |
| Independent Director | 2.25yrs | US$220.47k | 0.035% $ 1.9m | |
| Independent Director | 3.58yrs | US$220.47k | 0.035% $ 1.8m | |
| Independent Director | 3.58yrs | US$205.47k | 0.026% $ 1.3m |
3.6yrs
Average Tenure
53yo
Average Age
Experienced Board: NEP's board of directors are considered experienced (3.6 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.9%.
Top Shareholders
Company Information
NextEra Energy Partners, LP's company bio, employee growth, exchange listings and data sources
Key Information
- Name: NextEra Energy Partners, LP
- Ticker: NEP
- Exchange: NYSE
- Founded: 2014
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: US$5.256b
- Shares outstanding: 75.89m
- Website: https://www.investor.nexteraenergypartners.com
Location
- NextEra Energy Partners, LP
- 700 Universe Boulevard
- Juno Beach
- Florida
- 33408
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEP | NYSE (New York Stock Exchange) | Yes | Common Units | US | USD | Jun 2014 |
| 1N6 | DB (Deutsche Boerse AG) | Yes | Common Units | DE | EUR | Jun 2014 |
Biography
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 | 2021/03/07 00:10 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.