Last Updated: 16 Sep 2024
Executive Summary
Nextera Energy Partners LP (NEP) is a publicly traded master limited partnership that acquires, owns, and manages contracted clean energy projects in the United States. The company's portfolio includes solar, wind, and natural gas projects with a total capacity of over 2,000 megawatts. NEP has a market capitalization of $23.68 billion and is traded on the NYSE under the ticker symbol "NEP."
Company Overview
NEP was formed in 2014 as a subsidiary of NextEra Energy, Inc. (NEE). The company's primary business is to acquire and operate contracted clean energy projects that generate electricity from renewable sources. NEP's projects are typically located in states with favorable renewable energy policies and have long-term contracts with utilities and other off-takers.
NEP has a strong track record of growth and profitability. The company's revenue has increased by an average of 15% per year over the past five years, and its EBITDA has increased by an average of 20% per year. NEP's financial performance is supported by its long-term contracts, which provide stable cash flow and visibility into future earnings.
Fundamental Analysis
NEP's fundamental analysis shows that the company is a well-positioned player in the growing clean energy market. The company has a strong portfolio of projects, a solid financial foundation, and a track record of growth. NEP's key financial metrics are as follows:
Revenue: $1.16 billion (TTM)
EBITDA: $639 million (TTM)
Net income: $307 million (TTM)
EPS: $1.54 (TTM)
Dividend yield: 0.14%
NEP's trailing PE ratio of 16.44 is in line with the average PE ratio for the electric utilities sector. The company's forward PE ratio of 16.78 is slightly below the sector average, indicating that NEP may be undervalued.
Technical Analysis
NEP's technical analysis shows that the stock is in a bullish trend. The stock price has been trading above its 50-day and 200-day moving averages for the past several months. The stock's relative strength index (RSI) is also above 50, indicating that the stock is not overbought.
Short Term Outlook
NEP's short-term outlook is positive. The company's financial performance is strong, and the stock is in a bullish trend. The stock price is expected to continue to rise in the short term, with a target price of $28.33.
Long Term Outlook
NEP's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for clean energy. The company's long-term contracts provide stable cash flow and visibility into future earnings. The stock price is expected to continue to rise in the long term, with a target price of $35.00.
Analyst Recommendations
Analysts are generally positive on NEP. The consensus analyst rating is "buy." The average analyst target price is $28.33.
