Xcel Energy Inc. 6.25% Junior Subordinated Notes Series due 2085 (XELLL)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

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

I approach this as a creditor of a regulated utility, not as an owner of common stock. Xcel delivers electric and natural gas service, a durable franchise because customers need the service and regulators set returns. In fiscal 2023, the year ended 2023-12-31, net income was $1.8B and diluted EPS $3.21. In fiscal 2024, the year ended 2024-12-31, net income was $1.9B and diluted EPS $3.44. In fiscal 2025, the year ended 2025-12-31, net income was $2.0B and diluted EPS $3.42. So profits grew, but per-share results stalled. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $586.0M and diluted EPS $0.93. FairStock calculations show ROE of 9.92%, ROCE of 2.37%, and debt-to-equity of 1.73. That is a capital-intensive, leveraged business. The 6.25% junior subordinated notes due 2085 sit far down the capital structure and have enormous duration; their value will swing with interest rates and credit spreads. At the close on 2026-10-13, the price was $21.27, near the low end of the 52-week range of $20.58-$25.59. FairStock's P/B is 0.55 and its score is 47/100, but those are issuer/equity calculations, not a direct measure of note safety. I see a stable but slow-growing utility. The note may offer income, but without yield-to-maturity, call terms, and senior debt cushion, I cannot call it a bargain. The margin of safety is in seniority and coverage, not in a low ticker price.

In plain English: Xcel Energy is a regulated electric and natural gas utility. It has been steadily profitable, with net income of $2.0B in fiscal 2025, the year ended 2025-12-31, and $586.0M in fiscal Q2 2026, the quarter ended 2026-06-30. At the 2026-10-13 close, the note was $21.27, near the low end of its 52-week range, so it may look inexpensive, but it is a very long-term debt that ranks behind more senior debts and can be hurt by higher interest rates.

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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