Xcel Energy Inc. 6.25% Junior Subordinated Notes, Series due 2085 (XELLL) Fundamental Analysis: Bull vs. Bear Case

XELLL

Xcel Energy Inc. 6.25% Junior Subordinated Notes, Series due 2085

Fundamental data last updated:August 26, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Not Scheduled

Business Summary

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity in the United States. It operates through Regulated Electric Utility and Regulated Natural Gas Utility segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. 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 and nonregulated assets, 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. Xcel Energy Inc. was formerly known as Northern States Power company. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.

VALUATION

P/E

7.18 Market Cap ($M USD)

$14.41B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

3.35 PRICE TO BOOK

2.08 EV / EBITDA

14.09 5-Year Average P/E

Free Cash Flow Yield

-6.56%

DCF Value

N/A

Graham Number

$53.63

Price to FCF

-15.25

EV to FCF

-26.34

Earnings Yield

4.23%

FCF Yield

-6.56%

DIVIDEND

Yield

2.90%

Annual Payout

$2.30

Payout Ratio

1.96%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.35

Next Year EPS Growth Estimate

N/A

Next Year Revenue Growth Estimate

N/A

Return on Equity (ROE)

9.34%

FREE CASH FLOW

Operating Margin

19.85%

Debt-to-Equity

N/A

Piotroski F-Score

N/A

Altman Z-Score

N/A

Return on Invested Capital (ROIC)

3.80%

Current Ratio

0.77 Quick Ratio

0.68 Net Debt to EBITDA

5.93 Interest Coverage

2.09 Gross Profit margin

18.91%

FCF PER SHARE

$-5.20

REVENUE PER SHARE

$23.69

Gainseekers Quantitative Analysis

Summary

Xcel Energy Inc.’s 6.25% Junior Subordinated Notes present a complex valuation picture. With a Price/Earnings ratio of 7.30, the market seems to undervalue its earnings potential, especially when juxtaposed with the Graham Number of 53.63, suggesting a potential undervaluation. However, the absence of a DCF Value and a Forward P/E leaves a gap in forecasting future growth. The Earnings Yield of 4.22% indicates moderate profitability, but the lack of an Altman Z-score raises questions about its financial stability. Overall, the stock’s valuation appears conservative, yet its financial health remains uncertain.

AI Exposure / Tech Reliance

Operating within the Asset Management industry, Xcel Energy Inc. is poised to leverage AI and tech advancements to optimize asset allocation and risk management. However, its traditional financial services focus may limit rapid adaptation to tech shifts. The company's resilience will depend on its ability to integrate AI into its existing frameworks.

The Bull Case

For the value-driven investor, Xcel Energy Inc. offers a compelling narrative. Despite a modest ROIC of 3.80%, the company's operating margin of 19.85% suggests solid pricing power. While the Piotroski F-Score is unavailable, the low Earnings Yield and negative FCF Yield highlight potential for improvement. These metrics suggest a company with room to enhance capital efficiency and unlock shareholder value.

The Bear Case

The bear case for Xcel Energy Inc. is stark. The negative FCF Yield and Price to FCF ratio of -15.28 signal troubling cash flow issues. With a Net Debt to EBITDA ratio of 5.93, the company faces significant leverage concerns. Additionally, trading near its 52-week high with a Price/Book ratio of 2.08, the stock appears technically overextended, raising red flags for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

N/A

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.42 Insider Buying % (6 Mo)

Distance to 52-Week High

6.40%

Distance to 52-Week Low

1.08%

EARNINGS SURPRISE %

N/A

50-DAY SMA

$24.47

200-DAY SMA

$24.82

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.