XCEL ENERGY INC (XELLL) Stock Analysis
XCEL ENERGY INC
▾ What's in the 39/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
How to read XELLL (regulated utility)
A regulator sets what a utility can earn, so its value tracks book value, dividend yield and payout — not a free-market DCF.
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Utility lens (P/B, yield, payout) ↓
These are the metrics utility-fund managers actually use.
Is now a good time to buy XELLL?
Macro: Neutral / mid-cycleXELLL trades at $21.83 vs an estimated intrinsic value of $52.98 — a 58.8% discount to model IV.
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: sector: Utilities. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does XELLL stack up against its closest peers?
We take the 8 same-industry companies most similar to XELLL (similar size) and check what investors are paying for each dollar of their revenue (or profits). If XELLL is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
2.0x / 3.4x / 5.6x |
| EV / EBITEV / EBITDA — Enterprise value divided by earnings before interest, tax, depreciation, and amortization. Why it matters: A classic "what would a private buyer pay" multiple — used in M&A. Strips out tax and capital-structure noise. Reference: 8–12x for mature businesses · 15–25x for growth · Below 5x often signals distress Full explanation → |
12.3x / 14.4x / 23.3x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| SREA | SEMPRA | Combined Utility Services | $14.0B | 1.1x | — | — | 11.5% |
| LNT | ALLIANT ENERGY CORP | Combined Utility Services | $18.5B | 6.8x | — | 28.7x | 2.8% |
| DUKB | Duke Energy CORP | Combined Utility Services | $18.6B | 3.3x | — | 12.3x | 3.0% |
| EVRG | Evergy, Inc. | Combined Utility Services | $18.9B | 5.6x | — | 20.8x | 3.2% |
| UGI | UGI CORP /PA/ | Combined Utility Services | $7.5B | 2.0x | — | 12.8x | 4.2% |
| NI | NISOURCE INC. | Combined Utility Services | $22.2B | 3.4x | — | 12.1x | 2.4% |
| CMS | CMS ENERGY CORP | Combined Utility Services | $22.4B | 4.8x | — | 23.3x | 3.0% |
| CMSD | CMS ENERGY CORP | Combined Utility Services | $7.1B | 3.0x | — | 14.4x | 3.0% |
Regulated rate-base economics
Regulated utilities earn a state-approved "allowed ROE" (typically 9-10%) on their regulated rate base. The business is engineered for stability — DCF can't price that properly because earnings are administratively set, not free-market. The right metrics are P/B, dividend yield, and payout ratio — what most utility-fund managers actually look at.
Note: For utilities, ROE comfortably above the regulator's allowed ROE (~9-10%) is the sign of operational efficiency. Big premium to book (>2×) generally requires accelerating rate-base growth — common drivers: grid modernization, renewables transition, or population/load growth in service area.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Regulated utilities carry high leverage backed by long-life assets and regulator-set rate-base returns — Altman Z flags both as distress signals even when the business is stable. See the Utility Lens above for the metrics that matter (P/B, dividend yield, payout ratio).
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F's checks (operating cash flow, gross-margin trend, current ratio, asset turnover) assume an industrial cost structure, so they misread asset-heavy or financial businesses like this one — a healthy REIT, utility, pipeline, BDC/fund or holding company can score low for reasons that aren't weakness. See the sector lens above for the metrics that actually matter.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 8.0%, the figure our model used for XELLL. Open Advanced to also change beta, growth and the rate path.
Note: the calculator opens at our published value of $52.98 — it is initialised to the same scenario-weighted result, so the two match exactly on load. The moment you move a slider, the value below becomes a single-path what-if at your assumptions (not the three-scenario weighting), which is why it can differ from the headline once you've touched it.
6.5% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 0.35. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
8.0% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 8.0% — the more conservative sector/quality rate (we use the more conservative sector/quality rate when model applicability is limited or the balance sheet is stretched). Drag the slider to the other rate to see the full range.
A full intrinsic value isn't shown for XELLL because it's valued with a dividend-discount model this quick calculator doesn't replicate — see our published value above and the sector lens for the right metrics.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
XCEL ENERGY INC (XELLL) is deeply undervalued by our dividend discount model, with the price 58.8% below intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation → (a 56.2% discount / margin of safetyMargin of Safety — How much room there is between the current price and intrinsic value, in your favor.
Why it matters: Benjamin Graham's core idea: only buy when there is enough discount that you can be wrong about your assumptions and still not lose money.
Reference: 20%+ is the classic Graham target · 30%+ for higher-risk companies
Full explanation →); equivalently the intrinsic value is about 128% ABOVE the price. The market is likely discounting XELLL due to its rising long-term debt, which has increased from $601M to $31331M, and a current ratio of 0.71, indicating current liabilities exceed liquid assets. The biggest risk to our model's base assumptions is that the underlying cash flow growth, currently modeled at 5.3% annually, fails to materialize, especially given the significant increase in long-term debt.
As of 42 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Improvement in current ratio above 1.0
- Stabilization or reduction of long-term debt
- Continued positive operating cash flow growth
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Net income grew +4% to $2.02B.
- Free cash flow is negative at -$6.87B — the cash burn widened vs last year.
Management & Leadership
Robert Frenzel serves as the Chairman, President, and Chief Executive Officer of Xcel Energy, having taken on the CEO role in 2021. He has been with the company for over a decade, previously serving as President and Chief Operating Officer. The executive team focuses on delivering reliable energy and advancing clean energy initiatives.
What They Make
Xcel Energy Inc. is a utility holding company engaged primarily in the generation, purchase, transmission, distribution, and sale of electricity and natural gas. Its paying customers are residential, commercial, and industrial consumers of electricity and natural gas across its service territories.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
XELLL trades at a 58.8% discount to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →. The market is likely pricing in concerns over the company's financial health, specifically the substantial increase in long-term debt from $601M to $31331M and a current ratio of 0.71, which is below 1. Separately, the reverse DCFReverse DCF — Instead of asking "what is this stock worth?", asks "what growth rate is the current market price already assuming?"
Why it matters: It crystallizes the bull thesis as a single number you can argue with. If the market expects 40% growth for 10 years and you do not believe that, the stock is overvalued.
Reference: 10–15% = sustainable for strong companies · 20–25% = exceptional · 30%+ = historically very rare
Full explanation → implies the price is consistent with a material multi-year contraction in per-share cash flow, despite the model's 5.3% dividend growth rate.
Three Scenarios, Weighted
| Scenario | IV | Upside from today's price | Weight |
|---|---|---|---|
| Conservative | $45.20 | 107.1% | 40% |
| Base | $53.90 | 146.9% | 35% |
| Optimistic | $64.15 | 193.9% | 25% |
| Weighted | $52.98 | 142.7% | 100% |
Reading the last column: it is the move from today's price to each value (IV ÷ price − 1). The headline "premium/discount to model IV" measures the same gap from the value's side (price ÷ IV − 1), so the two percentages differ in size and sign by construction — e.g. a price 8% above value is a value 7.4% below price.
Business Model & Valuation
How They Make Money
Xcel Energy has declared dividends of $2.28/yr per share, growing at 5.3%/yr over four years. The company has seen a significant rise in long-term debt from $601M to $31331M.
Dividend Discount Medium
Utility (Combined Utility Services): dividend discount model - growth is regulated and yield is the primary driver.
Show advanced inputs
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project rate-base growth, allowed ROE and dividend growth independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income has been positive for the latest five years, and operating cash flow has been positive for the latest five years.
Geography & Markets
Xcel Energy primarily operates in the Midwestern and Western United States, providing electricity and natural gas services across several states. Exact geographic segment splits are not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)43.4NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (3 notes — click to expand/collapse)
Guardrail Notes (3)
- Dividend: last fiscal-year DECLARED dividend per share from the filing ($2.28/yr, us-gaap:CommonStockDividendsPerShareDeclared).
- Dividend growth from the declared-DPS series: 5.3%/yr over 4 years.
- Dividend data sparse; DDM using estimated yield. Confidence reduced.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From XCEL ENERGY INC's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | 2.0B | $3.42 |
| 2024 | — | 1.9B | $3.44 |
| 2023 | — | 1.8B | $3.21 |
| 2022 | — | 1.7B | $3.17 |
| 2021 | — | 1.6B | $2.96 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 4.1B | 10.9B | 46.0M | -6.9B |
| 2024 | 4.6B | 7.4B | 33.0M | -2.8B |
| 2023 | 5.3B | 5.9B | — | -552.0M |
| 2022 | 3.9B | 4.6B | 20.0M | -726.0M |
| 2021 | 2.2B | 4.2B | 31.0M | -2.1B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 4.1B − 10.9B − 46.0M (stock-based comp) = -6.9B. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a TTM dividend, not this single year.
Balance Sheet
| Total Assets | 81.4B |
| Total Liabilities | 57.8B |
| Equity | 23.6B |
| Total Debt | 31.8B |
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