Comparing NextEra Energy Partners LP with its Rivals: An In-Depth Analysis
April 1, 2023
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NEXTERA ($NYSE:NEP): NextEra Energy Partners LP (NEP) is an investment company that operates in the clean energy sector. It is one of the leading players in the renewable energy space and has grown to become one of the most widely traded stocks in the industry. NEP is focused on acquiring and developing long-term contracted assets, as well as providing clean energy solutions to customers across North America. This article provides an in-depth analysis of NEP in comparison to its peers, to help investors make a more informed decision about investing in the company. To start with, a very brief overview of NEP will be provided. NEP is a publicly-traded Master Limited Partnership that owns, operates, and acquires renewable energy projects and other clean energy generation and storage assets. The company has extensive experience in developing, constructing, owning and operating renewable energy projects and works with its customers to provide reliable and cost-effective clean energy solutions. After this short introduction, a comparison of NEP with its peers is provided.
NEP is compared to competitors such as Orsted, NextEra Energy Resources, and Pattern Energy Group Inc. based on their financial performance, business model, growth strategies and market position. NEP’s financial performance is compared to its peers in terms of revenue, profits, asset base and debt load. Furthermore, a comparison of the competitors’ business models reveals how they each approach their markets and the strategies they use to maximize profits. The market position of each company is also compared to reveal which company holds the most influence and control in the sector. Ultimately, this article provides a comprehensive analysis of NEP in comparison to its competitors, so investors can make a more informed decision about investing in this company. With this knowledge, investors can make sound financial decisions that will benefit them in the long term.
Market Price
On Monday, NEP stock opened at $61.4 and closed at $61.2, up by 0.2% from the previous closing price of $61.0. This increase in stock price marks the company’s ability to maintain its competitive position in the industry despite its rivals. To gain a better understanding of how NEP competes against its rivals, this article will conduct an in-depth analysis of the company’s performance and market share. The company’s success can be attributed to its strong portfolio of renewable energy projects, which are divided into three categories: wind, solar and energy storage. In order to assess NEP’s performance against its competitors, we will look at the various averages of their projects and compare them with NEP’s. These averages include the average return on equity and the average operating margin for each project.
Additionally, we will look at the market share of each company in order to gauge NEP’s level of competition within the industry. Lastly, we will analyze the company’s financials to determine the strength of its balance sheet and its ability to withstand any potential market changes. We will also consider any potential risks associated with investing in NEP, such as interest rate volatility and the potential for industrywide regulation changes. By taking all of these factors into account, we can gain a better understanding of how NEP is performing in comparison to its rivals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NEP. More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | 477 | 36.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NEP. More…
| Operations | Investing | Financing |
| 776 | -1.19k | 551 |
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 |
| 23.05k | 8.28k | 39.43 |
Key Ratios Snapshot
Some of the financial key ratios for NEP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.3% | -11.6% | 13.3% |
| FCF Margin | ROE | ROA |
| 48.4% | 3.0% | 0.4% |
Analysis
GoodWhale’s analysis of NEXTERA ENERGY PARTNERS shows that the company has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. We have classified NEXTERA ENERGY PARTNERS as a ‘cheetah’ type of company – one that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Thus, investors interested in a company like NEXTERA ENERGY PARTNERS are likely to be looking for a mix of dividend income, growth potential, and reasonable asset and profitability levels. Specifically, our analysis shows that NEXTERA ENERGY PARTNERS is strong in dividend, growth, and medium in asset, profitability. 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 a publicly traded master limited partnership that mainly owns, operates, and acquires renewable energy and conventional generation, transmission, and distribution assets. NEP’s performance is compared against its peers to analyze how it stacks up in the industry. Its current price-to-earnings ratio is slightly above the industry average, indicating that it trades at a premium to its peers. Its dividend yield is also higher than its peers.
Additionally, NEP’s return on equity is higher than the industry average, indicating that it is more efficient at generating returns on shareholder investments. NEP’s debt-to-equity ratio is average compared to peers, indicating that its leverage is moderate. Overall, NEP’s financial position and stock performance indicate that it is well positioned among its peers.
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