Xcel Energy Inc. (XEL)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Xcel is the kind of regulated utility I understand: it delivers electricity and gas under monopoly-like franchises, so demand is steady and the 3.28% dividend yield is appealing. But the financials are not those of a high-quality compounder. Return on equity was 9.92%, return on capital only 2.37%, and debt-to-equity stood at 1.73. Trailing free cash flow was -$7.7B, a -16.5% free cash flow yield, and the Altman Z-score of 0.62 signals financial fragility. Utilities often burn cash while building rate base, but this one depends on regulators and capital markets. Growth is modest: FairStock calls it a SLOW GROWER, with profit about 6.5% a year over five years. Recent results are better. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $586.0M, or $0.93 per diluted share, versus $444.0M and $0.75 in fiscal Q2 2025. Fiscal Q1 2026 net income was $556.0M, or $0.89. Full-year fiscal 2025 net income was $2.0B, or $3.42 per share, following $1.9B and $3.44 in fiscal 2024. At the 2026-10-13 close of $74.64, the P/E is 20.45 and P/B is 1.94. The Graham Number is $56.25, leaving the price about 33% above that conservative estimate. PEG of 0.64 looks reasonable if growth persists, but the FairStock Score is 46/100. I would want a wider margin of safety.

In plain English: Xcel Energy is a regulated electric and natural gas utility that sells power and gas to customers under government-approved rates. The business looks steady but not especially strong, because profits are growing slowly, it spends a lot on its network, and its cash flow is negative. At $74.64, the stock looks a bit expensive compared with what its earnings and assets suggest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer