Xcel Energy Profit Margin vs. Price To Earning

XEL Stock  USD 68.21  0.49  0.72%   
Based on the key profitability measurements obtained from Xcel Energy's financial statements, Xcel Energy may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Xcel Energy's ability to earn profits and add value for shareholders.

Xcel Energy Net Profit Margin

0.0661

At this time, Xcel Energy's Price Sales Ratio is quite stable compared to the past year. At this time, Xcel Energy's Net Income is quite stable compared to the past year. Non Operating Income Net Other is expected to rise to about 129.3 M this year, although the value of Operating Income will most likely fall to about 1.7 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.4177
Significantly Up
Very volatile
Net Profit Margin0.06610.1247
Way Down
Slightly volatile
Operating Profit Margin0.120.1746
Way Down
Slightly volatile
Pretax Profit Margin0.0880.1144
Significantly Down
Slightly volatile
Return On Assets0.02010.0276
Way Down
Slightly volatile
Return On Equity0.06510.1005
Way Down
Slightly volatile
For Xcel Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Xcel Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Xcel Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Xcel Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Xcel Energy over time as well as its relative position and ranking within its peers.
  

Xcel Energy's Revenue Breakdown by Earning Segment

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For more information on how to buy Xcel Stock please use our How to buy in Xcel Stock guide.
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Xcel Energy. If investors know Xcel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Xcel Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.018
Dividend Share
2.163
Earnings Share
3.37
Revenue Per Share
24.665
Quarterly Revenue Growth
(0.01)
The market value of Xcel Energy is measured differently than its book value, which is the value of Xcel that is recorded on the company's balance sheet. Investors also form their own opinion of Xcel Energy's value that differs from its market value or its book value, called intrinsic value, which is Xcel Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Xcel Energy's market value can be influenced by many factors that don't directly affect Xcel Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Xcel Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Xcel Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Xcel Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Xcel Energy Price To Earning vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Xcel Energy's current stock value. Our valuation model uses many indicators to compare Xcel Energy value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15MGEESOLNTAEEETREVRGXEL 0510152025 -0.0500.050.100.150.20
Xcel Energy is rated below average in profit margin category among its peers. It is rated second in price to earning category among its peers reporting about  166.42  of Price To Earning per Profit Margin. At this time, Xcel Energy's Net Profit Margin is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Xcel Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Xcel Price To Earning vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Xcel Energy

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.14 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Xcel Energy

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
22.75 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Xcel Price To Earning Comparison

22.7524.9022.2621.7120.97100%
Xcel Energy is currently under evaluation in price to earning category among its peers.

Xcel Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Xcel Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Xcel Energy will eventually generate negative long term returns. The profitability progress is the general direction of Xcel Energy's change in net profit over the period of time. It can combine multiple indicators of Xcel Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-94 M-98.7 M
Operating Income2.5 B1.7 B
Net Income1.8 B1.9 B
Income Tax Expense-146 M-138.7 M
Income Before Tax1.6 BB
Total Other Income Expense Net-856 M-813.2 M
Net Income Applicable To Common SharesBB
Net Income From Continuing Ops1.8 B1.3 B
Non Operating Income Net Other112.7 M129.3 M
Interest Income771.6 M394.9 M
Net Interest Income-1 B-1.1 B
Change To Netincome-218.7 M-207.8 M
Net Income Per Share 3.21  3.37 
Income Quality 3.01  1.90 
Net Income Per E B T 1.09  0.60 

Xcel Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Xcel Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Xcel Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Xcel Energy's important profitability drivers and their relationship over time.

Use Xcel Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Xcel Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xcel Energy will appreciate offsetting losses from the drop in the long position's value.

Xcel Energy Pair Trading

Xcel Energy Pair Trading Analysis

The ability to find closely correlated positions to Xcel Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Xcel Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Xcel Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Xcel Energy to buy it.
The correlation of Xcel Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Xcel Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Xcel Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Xcel Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Xcel Energy position

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When determining whether Xcel Energy is a strong investment it is important to analyze Xcel Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Xcel Energy's future performance. For an informed investment choice regarding Xcel Stock, refer to the following important reports:
Check out Your Current Watchlist.
For more information on how to buy Xcel Stock please use our How to buy in Xcel Stock guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project Xcel Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Xcel Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Xcel Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Xcel Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Xcel Energy investors may work on each financial statement separately, they are all related. The changes in Xcel Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Xcel Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.