NEP Stock Fair Value Calculation – NextEra Energy Partners Stock Set for Long-term Growth

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NEXTERA ($NYSE:NEP): NextEra Energy Partners stock is set for long-term growth. The company is one of the leading renewable energy yieldco companies, with a portfolio of wind and solar projects with long-term cash flows and contracts. It has been actively acquiring additional projects over the past few years, which has resulted in a strong growth in its portfolio and stock price. The company has also created a unique competitive advantage by providing capital for renewable energy projects, which helps it to generate stable and long-term revenue. The company operates and owns contracted clean energy generation assets including solar, wind and battery storage assets across the United States. With its strong portfolio of renewable energy projects, the company is well-positioned to benefit from the growth of the renewable energy sector.

Additionally, NextEra Energy Partners has the advantage of being able to finance projects with its own capital, allowing it to take advantage of opportunities as they become available. This further enhances the company’s competitive advantage and strengthens its position in the market. With such strong fundamentals, investors can expect to see robust returns on their investment in the long-term.

Stock Price

NextEra Energy Partners (NEP) stock opened on Wednesday at $23.9 and closed at $23.6, representing a 0.1% decline from its prior closing price of 23.7. Despite the minor dip in stock price, analysts are confident that NEP is set for long-term growth, as their renewable energy business model continues to be a driving factor in energy production worldwide. NEP focuses on low-risk investments in contracted renewable assets such as wind and solar plants across the United States. This shows that more investors are turning to NEP as a safe and reliable investment in renewable energy.

All signs point to NEP’s stock price continuing to rise in the long-term, making it an attractive option for investors looking for a consistent return on investment. With the renewable energy sector on the rise, now is an ideal time to invest in NextEra Energy Partners stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NEP. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NEP. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NEP. More…

Key Ratios Snapshot

Some of the financial key ratios for NEP are shown below. More…

Analysis – NEP Stock Fair Value Calculation

At GoodWhale, we have conducted an analysis of NEXTERA ENERGY PARTNERS’s wellbeing. After running our proprietary Valuation Line, we have determined that the fair value of NEXTERA ENERGY PARTNERS share is around $73.4. Currently, NEXTERA ENERGY PARTNERS is traded at $23.6, which is significantly lower than its fair value – by 67.8%. This indicates that the stock is currently undervalued, and therefore could be a good investment opportunity for those looking to diversify their portfolios with a renewable energy company. 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) is an attractive investment opportunity with long-term growth potential. NEP is a publicly traded MLP that holds a portfolio of contracted renewable energy and natural gas infrastructure assets. Its stable cash flows and steady dividend yield are driven by long-term, fee-based contracts. NEP’s portfolio consists of a diverse mix of wind, solar, and natural gas, with a focus on quality assets located in the U.S. and Canada, which provide stable long-term revenue streams.

Furthermore, NEP has strong financial metrics and a solid balance sheet with an impressive dividend history. With the expected growth in renewable energy sources, NEP looks set to continue delivering impressive returns in the long run.