NEP Stock Fair Value – NextEra Energy Partners Shares Surge After Impressive Earnings Report
October 26, 2023
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NEXTERA ($NYSE:NEP): Shares of NextEra Energy Partners (NEP) surged following the company’s impressive earnings report. NEP is a publicly traded limited partnership sponsored by NextEra Energy, Inc. (NEE), one of the largest and cleanest energy companies in the United States. NEP acquires, manages, and owns contracted clean energy projects with stable, long-term cash flows and ownership interests in entities that own contracted clean energy projects.
NEP’s earnings report showed strong results across all metrics and the stock responded with a surge. The impressive earnings report and subsequent surge in NEP shares demonstrate the strength of the company’s clean energy portfolio and its ability to generate stable, long-term returns.
Earnings
The report showed total revenue of 253.0 million USD, a 30.1% decrease compared to the previous year. Net income was 74.0 million USD, a 133.8% decrease compared to the previous year. Over the last three years, total revenue for NEXTERA ENERGY PARTNERS has increased from 253.0 million USD to 350.0 million USD. This impressive growth is likely a major factor contributing to the share price increase.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NEP. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | 148 | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NEP. More…
| Operations | Investing | Financing |
| 663 | -1.32k | 1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NEP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.57k | 8.93k | 40.02 |
Key Ratios Snapshot
Some of the financial key ratios for NEP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | -31.0% | 13.8% |
| FCF Margin | ROE | ROA |
| 32.7% | 3.0% | 0.4% |
Stock Price
The stock opened at $25.9 and closed at $26.0, showing a 0.7% increase from its last closing price of $25.8. This surge in stock price is indicative of the company’s strong financial performance, as investors are showing confidence in the company’s ability to generate consistent returns. The company’s success is attributed to its efficient operations and strong asset portfolio. With the stock price increase, NEXTERA ENERGY PARTNERS looks set to continue its positive trajectory in the future. Live Quote…
Analysis – NEP Stock Fair Value
At GoodWhale, we performed a thorough analysis of the fundamentals of NEXTERA ENERGY PARTNERS. After taking into consideration factors such as financial performance, expected growth, and management quality, we arrived at a fair value of around $71.9 for each share of NEXTERA ENERGY PARTNERS, calculated by our proprietary Valuation Line. Currently, the stock of NEXTERA ENERGY PARTNERS is traded at $26.0, which means that it is undervalued by 63.8%. For investors who are looking to take advantage of this opportunity, now is the perfect time to invest in NEXTERA ENERGY PARTNERS. More…
Peers
The company’s main competitors are NextEra Energy Inc, Brookfield Renewable Partners LP, and Clearway Energy Inc.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc. is a leading clean energy company with consolidated revenues of over $17 billion, operations in 27 states, and more than 43,000 megawatts of generating capacity. NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves more than 10 million customer accounts in Florida, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun.
– Brookfield Renewable Partners LP ($TSX:BEP.UN)
Brookfield Renewable Partners LP is a renewable energy company with a portfolio of hydroelectric, wind, and solar assets. The company has a market cap of 10.53B and a ROE of 15.58%. Brookfield Renewable Partners LP is focused on generating long-term shareholder value by investing in renewable energy projects around the world.
– Clearway Energy Inc ($NYSE:CWEN.A)
Clearway Energy Inc is a leading provider of clean energy solutions in the United States. The company has a market cap of 3.7 billion as of 2022 and a return on equity of 47.1%. Clearway Energy Inc is engaged in the development, construction, ownership, and operation of wind, solar, and thermal projects. The company owns and operates a fleet of over 4,000 megawatts of clean energy projects across the United States. Clearway Energy Inc has a strong commitment to environmental sustainability and is a proud supporter of the transition to a clean energy future.
Summary
NextEra Energy Partners (NEP) recently released strong earnings results for the quarter ending June 30th, resulting in a gap up in share price. Investors should be cautiously optimistic due to NEP’s strong performance and ability to generate cash available for distribution growth. Additionally, the company’s long-term prospects remain intact due to the growing demand for renewable energy sources.
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