Xcel Energy Inc
🇺🇸 XEL · NYSE/NASDAQ · US98389B1008
Utilities
USD 82.77 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
24.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 82.77 ÷ 3.43 = 24.2
TTM period through: 2025-12-31
Forward P/E (estimated): 20.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.8
Yield (Fwd)
2.86%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Div. Growth (5Y CAGR)
6.1%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
5.7x
Latest quarter: 24.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2026-03-31): 24.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
69.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 63.5%
Cash Flow Payout (TTM): 31.4%
FCF Coverage (TTM): 4.10x
ROE
9.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Xcel Energy is a high-quality regulated utility providing essential energy services with a secure monopoly position and excellent cash flow generation. While the stock's P/FFO of 10.4x suggests attractive underlying value, the sub-3% dividend yield and elevated GAAP multiples limit the immediate opportunity for new positions. Existing shareholders should maintain positions given the exceptionally safe dividend and stable long-term fundamentals.
Sector Context
Xcel Energy is a regulated electricity and natural gas utility serving millions of customers across eight Western and Midwestern states. In the utility sector, heavy capital investments in infrastructure and renewables generate massive depreciation expenses that often distort traditional GAAP earnings, making P/FFO a more accurate measure of true cash-generating power and dividend sustainability.
📊 Strategy Analysis
- • Dominant regulated utility with a strong monopoly position across 8 states, ensuring highly predictable recurring revenues
- • P/FFO of 10.4x is highly attractive compared to standard utility fair value ranges, indicating strong underlying cash flow generation despite GAAP distortions
- • Exceptional dividend safety with a low Cash Flow Payout of 31.4% and 9 consecutive years of dividend growth without cuts
- • Recent $640 million agreements in principle to resolve the 2021 Marshall Fire litigation largely removes a significant risk overhang
⚠ What to Watch
- • Forward dividend yield of 2.86% currently falls short of the optimal 3% minimum strategy threshold for income generation
- • GAAP P/E of 24.16x remains elevated and exceeds the standard 8-15x target range
- • Net Debt/EBITDA of 5.69x represents elevated leverage, requiring ongoing debt management amid an ambitious $60B capital expenditure plan for clean energy
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-02
Disclaimer: This information is for educational purposes only. Not financial advice.