Xcel Energy Inc (XELLL) stock analysis

P/E below its 5-year median

Xcel Energy's P/E of 18.6 is below its own 5-year median of 20.9.

P/E below the industry

Xcel Energy's P/E of 18.6 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

Xcel Energy's EV/EBITDA of 14.1 is above its 5-year median of 13.3.

P/B above the industry

Xcel Energy's price-to-book of 1.96 is above the Combination Electric and Gas, and Other Utility median of 1.70.

Trading above fair value

The share price of $79.82 is above our fair value estimate of $74.14.

Margin of safety under 20%

The price is 7.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 39.4% over the last twelve months, against a 5-year average of 6.5% a year.

Growing slower than the industry

Revenue grew 4.5% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.4%.

Guidance issued

The latest outlook (2027 ongoing earnings per share, Oct 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 11.4% over the last twelve months and averaged 10.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Xcel Energy's return on equity of 11.4% is above the Combination Electric and Gas, and Other Utility median of 9.6%.

Earnings grew over 5 years

Net income grew 6.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.9% over the last twelve months, against a 5-year average of 12.8%.

Net margin above the industry

Xcel Energy's net margin of 17.9% is above the Combination Electric and Gas, and Other Utility median of 11.7%.

High debt

Debt is 159% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 142% five years ago to 159%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 12.5% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.9 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.69 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Xcel Energy paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Xcel Energy yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 8 fiscal years.

Covered by earnings

Dividends take 52.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.