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
|Historical stock prices|
|Current Share Price||US$76.53|
|52 Week High||US$88.80|
|52 Week Low||US$61.31|
|1 Month Change||5.97%|
|3 Month Change||-6.97%|
|1 Year Change||2.70%|
|3 Year Change||59.11%|
|5 Year Change||106.73%|
|Change since IPO||139.16%|
Recent News & Updates
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.
|NEP||US Renewable Energy||US Market|
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.
|NEP Average Weekly Movement||5.3%|
|Renewable Energy Industry Average Movement||11.2%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.7%|
|10% least volatile stocks in US Market||3.2%|
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
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
|NEP fundamental statistics|
Is NEP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NEP income statement (TTM)|
|Cost of Revenue||US$441.00m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.94|
|Net Profit Margin||7.77%|
How did NEP perform over the long term?See historical performance and comparison
3.8%Current Dividend Yield
Is NEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is NEP's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does NEP's PE Ratio compare to its peers?
|NEP PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ORA Ormat Technologies
MNTK Montauk Renewables
AMPS Altus Power
CWEN.A Clearway Energy
NEP NextEra Energy Partners
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.
|Current PE Ratio||81.3x|
|Fair PE Ratio||29.1x|
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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How is NextEra Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has NextEra Energy Partners performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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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How is NextEra Energy Partners's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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).
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What is NextEra Energy Partners's current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Future Dividend Coverage
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Ketchum (50 yo)
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...
Experienced Management: NEP's management team is considered experienced (3.3 years average tenure).
Experienced Board: NEP's board of directors are considered experienced (4.8 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 10.6%.
NextEra Energy Partners, LP's employee growth, exchange listings and data sources
- Name: NextEra Energy Partners, LP
- Ticker: NEP
- Exchange: NYSE
- Founded: 2014
- Industry: Renewable Electricity
- Sector: Utilities
- Implied Market Cap: US$6.421b
- Shares outstanding: 83.91m
- Website: https://www.investor.nexteraenergypartners.com
- NextEra Energy Partners, LP
- 700 Universe Boulevard
- Juno Beach
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 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.