Last Updated: 18 Sep 2024
Executive Summary
Xcel Energy Inc. (XEL) is a utility holding company with a market capitalization of $35.99 billion. The company has a strong financial position with an EBITDA of $5.48 billion and a profit margin of 13.5%. XEL's dividend yield is 3.4%, and its earnings per share (EPS) is $3.35. The company has a trailing price-to-earnings (PE) ratio of 19.25 and a forward PE ratio of 16.89. The analyst consensus rating for XEL is "Buy," with a target price of $65.81.
Company Overview
Xcel Energy Inc. is a utility holding company based in Minneapolis, Minnesota. The company serves over 3.7 million electric customers and 2.1 million natural gas customers in eight states. Xcel Energy's four operating subsidiaries are Northern States Power-Minnesota, Northern States Power-Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Co.
Fundamental Analysis
Xcel Energy Inc. has a strong financial position. The company's EBITDA has grown by an average of 5% over the past five years. XEL's profit margin has also improved over the past five years, from 12.5% in 2018 to 13.5% in 2023. The company's EPS has grown by an average of 6% over the past five years.
XEL's balance sheet is also strong. The company has a debt-to-equity ratio of 0.54, which is below the industry average. XEL also has a strong cash position, with $2.5 billion in cash and cash equivalents on hand.
Technical Analysis
XEL's stock price has been in a downtrend since reaching a 52-week high of $64.95 in July 2023. The stock price has fallen by over 10% since then. The 50-day moving average is currently at $59.08, and the 200-day moving average is currently at $57.12. The relative strength index (RSI) is currently at 45.5, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for XEL is mixed. The stock price is currently in a downtrend, but the RSI is indicating that the stock is oversold. This suggests that the stock price could be due for a rebound. However, the overall market conditions are uncertain, and it is possible that the stock price could continue to decline.
Long Term Outlook
The long-term outlook for XEL is positive. The company has a strong financial position and a growing customer base. XEL is also investing in renewable energy projects, which should help the company to grow in the future. The company's dividend yield is also attractive, which makes it a good choice for income investors.
Analyst Recommendations
The analyst consensus rating for XEL is "Buy." The average target price for the stock is $65.81. Three analysts have a "Strong Buy" rating on the stock, six analysts have a "Buy" rating, seven analysts have a "Hold" rating, and one analyst has a "Sell" rating.
