Xcel Energy (XEL) AI Stock Analysis

• Market Cap: $38.44B
• Dividend Yield: 3.42%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.16
• Revenue Growth: -0.44%
• EPS Growth: 2.14%
• Country: US
• Employees: 11,380
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Electric
• EPS (TTM): 0.84
• Shares Outstanding: 576,760,600
• 10 Day Avg. Volume: 3,219,535
• 30 Day Avg. Volume: 3,492,323
• PEG Ratio: 3.11
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.32
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 13.79
• Enterprise Value/Ebitda: 2.90
• 1Y Price Target: $76.40
• Price Target Upside: 14.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $74.00 ▲(11.04%Upside)

Xcel Energy's overall stock score is driven by its stable financial performance and strategic investments in infrastructure. While technical indicators suggest bearish sentiment, the company's valuation and strong corporate governance provide support. Earnings call insights and corporate events highlight growth potential, despite facing challenges such as rising expenses and liabilities.

Positive Factors

De-carbonization Opportunities

Xcel's footprint gives it access to one of the most renewables-rich regions in the U.S., providing it with cost-effective de-carbonization opportunities.

Financial Stability

The IRA and tax credit transferability concerns are not as severe as initially feared, providing stability to Xcel Energy's financial plans.

Growth Potential

Xcel Energy is expected to have the highest ratebase CAGR among large-cap utilities, enhancing its growth potential.

Negative Factors

Cash Flow Concerns

The reduction in cash flow in the interim could require incremental equity issuance or other mitigation measures to preserve credit metrics.

Customer Impact Risk

Projects planned post-2029 could have an adverse impact on customers if not addressed, highlighting a potential risk.

Litigation and Financial Impact

Wildfires are expected to be a key topic for investors on the call, indicating ongoing concern about litigation and potential financial impacts.

Xcel Energy Business Overview & Revenue Model

Company Description

Xcel Energy Inc., through its subsidiaries, generates, purchases, transmits, distributes, and sells electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse, and wind energy sources. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company sells electricity to approximately 3.7 million customers; and natural gas to approximately 2.1 million customers. Xcel Energy Inc. was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Xcel Energy makes money through the regulated sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model is primarily based on rates approved by state and federal regulatory agencies, which allow Xcel Energy to recover its costs and earn a reasonable return on investment. Key revenue streams include electricity sales, natural gas sales, and transmission and distribution services. Additionally, Xcel Energy has invested significantly in renewable energy projects, benefiting from federal and state incentives and tax credits. The company's partnerships with governmental bodies and compliance with regulatory mechanisms also play a crucial role in its revenue generation, allowing it to maintain and expand its infrastructure for efficient energy delivery.

Xcel Energy Financial Statement Overview

Summary

Xcel Energy exhibits stable financial performance with strong operational efficiency reflected in its margins. Despite recent revenue declines, profitability remains solid. The balance sheet shows manageable leverage, and cash flow from operations is robust, although capital expenditures have led to negative free cash flow.

Income Statement

Xcel Energy demonstrates stable profitability with a consistent gross profit margin and net profit margin over the years. The TTM data shows a gross profit margin of 50.19% and a net profit margin of 14.08%. Revenue growth is slightly negative in recent periods, with a decline of 2.17% from 2022 to 2023 and a further decline of 5.60% from 2023 to 2024. However, EBIT and EBITDA margins remain strong at 17.49% and 40.77% in the TTM, indicating efficient operational performance.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a TTM debt-to-equity ratio of 1.60, which is typical for the regulated electric industry. The return on equity (ROE) is healthy at 9.75%, reflecting effective use of shareholder funds. The equity ratio stands at 27.22%, indicating a solid capital structure despite the significant debt levels.

Cash Flow

Xcel Energy's cash flow shows challenges with negative free cash flow in the TTM at -$317 million, primarily due to high capital expenditures. However, the operating cash flow to net income ratio is strong at 2.39, demonstrating robust cash generation from operations. The free cash flow to net income ratio is negative, highlighting the impact of capital investment on cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.71B	13.44B	14.21B	15.31B	13.43B	11.53B
	Gross Profit
4.66B	6.15B	5.93B	5.86B	5.26B	4.96B
	EBIT
2.40B	2.39B	2.48B	2.43B	2.20B	2.12B
	EBITDA
5.59B	5.59B	5.20B	5.01B	4.46B	4.19B
	Net Income Common Stockholders
1.93B	1.94B	1.77B	1.74B	1.60B	1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	179.00M	129.00M	111.00M	166.00M	129.00M
	Total Assets
72.75B	70.03B	64.08B	61.19B	57.85B	53.96B
	Total Debt
32.33B	30.21B	27.51B	26.03B	24.74B	22.21B
	Net Debt
31.20B	30.03B	27.39B	25.92B	24.57B	22.08B
	Total Liabilities
52.95B	50.51B	46.46B	44.51B	42.24B	39.38B
	Stockholders Equity
19.80B	19.52B	17.62B	16.68B	15.61B	14.57B
Cash Flow		Free Cash Flow
-317.00M	-2.72B	-527.00M	-706.00M	-2.06B	-2.52B
	Operating Cash Flow
4.62B	4.64B	5.33B	3.93B	2.19B	2.85B
	Investing Cash Flow
-7.86B	-7.43B	-5.93B	-4.65B	-4.29B	-4.74B
	Financing Cash Flow
3.87B	2.84B	617.00M	666.00M	2.13B	1.77B

Xcel Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XEL, the sentiment is Negative. The current price of 66.64 is below the 20-day moving average (MA) of 68.05, below the 50-day MA of 69.01, and above the 200-day MA of 66.58, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 22.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XEL.

Xcel Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	77 Outperform	$33.25B	20.34	12.96%	3.43%	4.42%	11.98%
EXC	74 Outperform	$43.01B	15.80	10.10%	3.75%	6.71%	16.09%
PEG	69 Neutral	$40.97B	22.44	11.40%	3.07%	11.24%	1.15%
XEL	68 Neutral	$38.44B	19.65	10.26%	3.42%	-0.44%	2.14%
Sector *	67 Neutral	$16.04B	16.83	4.58%	3.61%	4.77%	6.10%
PCG	66 Neutral	$30.48B	12.76	8.55%	0.72%	1.91%	-4.40%
ED	64 Neutral	$36.38B	18.64	8.33%	3.37%	8.52%	3.91%

Xcel Energy Corporate Events

Xcel Energy Appoints New Chief Legal Officer

On June 13, 2025, Xcel Energy announced that Rob Berntsen, Executive Vice President, Chief Legal and Compliance Officer, would be leaving the company to pursue another opportunity. Ryan Long, who has been with Xcel Energy since 2015 and served in various legal roles, was promoted to fill Berntsen’s position effective June 16, 2025. Long will also continue his role as President of Northern States Power Company while a search for his successor is conducted.

The most recent analyst rating on (XEL) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Shareholders Approve Board and Compensation Plans

Xcel Energy held its 2025 Annual Meeting of Shareholders on May 21, 2025, where all 11 directors nominated by the Board were elected. Shareholders also approved the company’s executive compensation plan and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025. These decisions reflect shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (XEL) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Enhances Financial Flexibility with New Credit Agreements

On May 6, 2025, Xcel Energy Inc. and its subsidiaries entered into amended and restated credit agreements with several financial institutions, enhancing their financial flexibility with unsecured credit facilities totaling several billion dollars. These agreements, maturing in December 2029, allow for increased borrowing under certain conditions and are intended for general corporate purposes, potentially impacting the company’s operational capabilities and market positioning.