Last Updated: 14 Nov 2024
Executive Summary
Nextera Energy Partners LP (NEP) is a publicly traded limited partnership that acquires, owns, and manages contracted clean energy projects in the United States. The company has a market capitalization of $14.97 billion and is headquartered in Juno Beach, Florida. NEP's common stock is traded on the NYSE under the ticker symbol "NEP."
Company Overview
NEP was formed in 2014 as a joint venture between NextEra Energy, Inc. (NEE) and Global Infrastructure Partners (GIP). The company's portfolio of assets includes wind, solar, and natural gas projects with a total capacity of over 5,000 megawatts. NEP has long-term contracts with utilities and other off-takers for the sale of its electricity.
Fundamental Analysis
NEP's financial performance has been strong in recent years. The company's revenue and earnings have grown steadily, and its profit margin has remained stable. In 2023, NEP reported revenue of $1.17 billion and net income of $262 million. The company's diluted EPS was $0.61.
NEP's financial ratios are also healthy. The company has a low debt-to-equity ratio of 0.47 and a strong return on equity of 10.2%. NEP's dividend yield is currently 2.25%.
Technical Analysis
NEP's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for NEP is neutral. The stock's technical indicators are suggesting that the stock is oversold, but the stock is still trading below its moving averages. Investors should wait for the stock to break above its moving averages before considering a long position.
Long Term Outlook
The long-term outlook for NEP is positive. The company's fundamentals are strong, and the company is well-positioned to benefit from the growing demand for renewable energy. Investors should consider a long position in NEP for the long term.
Analyst Recommendations
Analysts have a mixed view on NEP. Two analysts have a "Strong Buy" rating on the stock, two have a "Buy" rating, ten have a "Hold" rating, four have a "Sell" rating, and zero have a "Strong Sell" rating. The average analyst target price for NEP is $23.71.
