Xcel Energy (XEL) AI Stock Analysis

• Market Cap: $42.81B
• Dividend Yield: 3.11%
• Average Volume (3M): 3.03M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.14
• Revenue Growth: 1.20%
• EPS Growth: 7.99%
• Country: US
• Employees: 11,380
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 0.75
• Shares Outstanding: 591,426,150
• 10 Day Avg. Volume: 3,740,638
• 30 Day Avg. Volume: 3,030,915
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 5.23
• Enterprise Value/Gross Profit: 15.38
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $78.13
• Price Target Upside: 7.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $82.00 ▲(13.28% Upside)

Xcel Energy's strong financial performance, positive technical indicators, and promising earnings call highlight its growth potential. The robust dividend yield also adds to its attractiveness. However, the high P/E ratio and risks from legal challenges and operational costs moderate the overall outlook.

Positive Factors

Growth Potential

Xcel Energy is expected to have the highest ratebase CAGR among large-cap utilities, enhancing its growth potential.

Litigation Resolution

The Marshall Fire litigation resolution is seen as a major de-risking event for Xcel Energy shares.

Regulatory Opportunities

The company continues to execute on the regulatory front with the approved MN resource plan settlement providing visibility into the upside capital opportunities.

Negative Factors

Financial Impacts

The Smokehouse Creek Fire update shows an increase in estimated losses, with 255 claims received and $290 million accrued as the low-end of estimated losses.

Project Risks

Projects planned post-2029 could have an adverse impact on customers if not addressed, highlighting a potential risk.

Regulatory Concerns

Caution around recent regulatory developments is reflected in the rating.

Xcel Energy Business Overview & Revenue Model

Company Description

Xcel Energy Inc. is a leading public utility holding company headquartered in Minneapolis, Minnesota. It operates in the energy sector, primarily focused on the generation, transmission, and distribution of electricity and natural gas. Xcel Energy serves millions of customers across several states, including Colorado, Texas, Minnesota, New Mexico, and Wisconsin. The company is committed to providing reliable, affordable, and sustainable energy solutions, with core services that include renewable energy generation, traditional fossil fuel power plants, and a robust infrastructure for electricity and natural gas delivery.

How the Company Makes Money

Xcel Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. Its revenue model is based on regulated utility rates set by state public utility commissions, which allow the company to recover its costs and earn a reasonable return on investment. Key revenue streams include electricity sales from both renewable sources (such as wind and solar) and traditional fossil fuel sources (like natural gas and coal). Additionally, Xcel Energy earns income from natural gas sales and various energy efficiency programs. Significant partnerships with state governments, renewable energy developers, and other stakeholders contribute to its growth, particularly in expanding its renewable energy portfolio and achieving sustainability goals.

Xcel Energy Financial Statement Overview

Summary

Xcel Energy shows strong operational efficiency with stable profitability and healthy margins, despite recent revenue declines. The balance sheet has manageable leverage, though high capital expenditures have negatively impacted free cash flow.

Income Statement

Xcel Energy demonstrates stable profitability with a consistent gross profit margin and net profit margin over the years. The TTM data shows a gross profit margin of 50.19% and a net profit margin of 14.08%. Revenue growth is slightly negative in recent periods, with a decline of 2.17% from 2022 to 2023 and a further decline of 5.60% from 2023 to 2024. However, EBIT and EBITDA margins remain strong at 17.49% and 40.77% in the TTM, indicating efficient operational performance.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a TTM debt-to-equity ratio of 1.60, which is typical for the regulated electric industry. The return on equity (ROE) is healthy at 9.75%, reflecting effective use of shareholder funds. The equity ratio stands at 27.22%, indicating a solid capital structure despite the significant debt levels.

Cash Flow

Xcel Energy's cash flow shows challenges with negative free cash flow in the TTM at -$317 million, primarily due to high capital expenditures. However, the operating cash flow to net income ratio is strong at 2.39, demonstrating robust cash generation from operations. The free cash flow to net income ratio is negative, highlighting the impact of capital investment on cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.71B	13.44B	14.21B	15.31B	13.43B	11.53B
Gross Profit	4.66B	6.15B	5.93B	5.86B	5.26B	4.96B
EBITDA	5.59B	5.59B	5.20B	5.01B	4.46B	4.19B
Net Income	1.93B	1.94B	1.77B	1.74B	1.60B	1.47B
Balance Sheet
Total Assets	72.75B	70.03B	64.08B	61.19B	57.85B	53.96B
Cash, Cash Equivalents and Short-Term Investments	1.12B	179.00M	129.00M	111.00M	166.00M	129.00M
Total Debt	32.33B	30.21B	27.51B	26.03B	24.74B	22.21B
Total Liabilities	52.95B	50.51B	46.46B	44.51B	42.24B	39.38B
Stockholders Equity	19.80B	19.52B	17.62B	16.68B	15.61B	14.57B
Cash Flow
Free Cash Flow	-317.00M	-2.72B	-527.00M	-706.00M	-2.06B	-2.52B
Operating Cash Flow	4.62B	4.64B	5.33B	3.93B	2.19B	2.85B
Investing Cash Flow	-7.86B	-7.43B	-5.93B	-4.65B	-4.29B	-4.74B
Financing Cash Flow	3.87B	2.84B	617.00M	666.00M	2.13B	1.77B

Xcel Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XEL, the sentiment is Positive. The current price of 72.39 is below the 20-day moving average (MA) of 72.77, above the 50-day MA of 69.91, and above the 200-day MA of 68.23, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XEL.

Xcel Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXC	76 Outperform	$45.06B	16.93	9.87%	3.54%	4.46%	8.68%
WEC	73 Outperform	$35.22B	20.98	13.12%	3.27%	7.88%	20.67%
PEG	72 Outperform	$43.32B	21.92	12.19%	2.83%	13.73%	19.94%
XEL	72 Outperform	$42.81B	20.08	10.65%	3.11%	1.20%	7.99%
PCG	66 Neutral	$33.65B	14.16	8.48%	0.57%	-1.30%	-8.34%
ED	64 Neutral	$37.10B	18.65	8.54%	3.29%	9.03%	7.22%
Sector *	62 Neutral	C$8.27B	3.54	-16.63%	4.58%	0.42%	-203.16%

Xcel Energy Corporate Events

Xcel Energy’s Rate Increase Proposal Adjustments Recommended

In March 2025, Northern States Power Company-Wisconsin, a subsidiary of Xcel Energy, filed a request with the Public Service Commission of Wisconsin for a multi-year increase in electric and natural gas rates. The request includes a $151 million electric revenue increase over 2026 and 2027, and a $24 million natural gas revenue increase over the same period. On August 8, 2025, the PSCW Staff recommended adjustments, suggesting a $115 million increase for electric and $21 million for natural gas, with a decision expected by late 2025. This rate adjustment proposal reflects NSP-Wisconsin’s strategic focus on infrastructure investments and operational cost management, impacting stakeholders by potentially altering service costs and investment returns.

The most recent analyst rating on (XEL) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy’s SPS Selects 3,121 MW Capacity Portfolio

In October 2023, SPS, a subsidiary of Xcel Energy, filed its Integrated Resource Plan (IRP) with the New Mexico Public Regulation Commission (NMPRC) to address projected load growth and reliability needs, securing replacement energy and capacity for retiring resources. By July 2025, SPS selected a portfolio of 3,121 MW of accredited capacity resources, including wind, solar, storage, and natural gas, and plans to make regulatory filings for asset approvals in 2025, with expectations for approval in 2026. This strategic move is expected to enhance SPS’s operational capacity and compliance with renewable standards, impacting its industry positioning and stakeholder interests.

The most recent analyst rating on (XEL) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Seeks $44 Million Rate Increase

On June 30, 2025, Northern States Power Company, a subsidiary of Xcel Energy, filed for a $44 million electric rate increase with the South Dakota Public Utilities Commission, aiming for a 15% hike based on a 2024 test year. If approved, this would lead to a 3% average annual residential bill increase over 2016-2026, potentially impacting stakeholders and the company’s financial positioning.

The most recent analyst rating on (XEL) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Appoints New Chief Legal Officer

On June 13, 2025, Xcel Energy announced that Rob Berntsen, Executive Vice President, Chief Legal and Compliance Officer, would be leaving the company to pursue another opportunity. Ryan Long, who has been with Xcel Energy since 2015 and served in various legal roles, was promoted to fill Berntsen’s position effective June 16, 2025. Long will also continue his role as President of Northern States Power Company while a search for his successor is conducted.

The most recent analyst rating on (XEL) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Shareholders Approve Board and Compensation Plans

Xcel Energy held its 2025 Annual Meeting of Shareholders on May 21, 2025, where all 11 directors nominated by the Board were elected. Shareholders also approved the company’s executive compensation plan and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025. These decisions reflect shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (XEL) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.