Xcel Energy (XEL) AI Stock Analysis

• Market Cap: $47.86B
• Dividend Yield: 2.79%
• Average Volume (3M): 4.58M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.08
• Revenue Growth: 3.32%
• EPS Growth: -2.30%
• Country: US
• Employees: 11,380
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.24
• Shares Outstanding: 591,539,800
• 10 Day Avg. Volume: 5,544,168
• 30 Day Avg. Volume: 4,577,414
• PEG Ratio: 2.74
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 2.83
• P/FCF Ratio: -13.96
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 4.73
• Enterprise Value/Gross Profit: 9.74
• Enterprise Value/Ebitda: 15.28
• 1Y Price Target: $89.13
• Price Target Upside: 10.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 3.82
• Revenue Forecast (FY): $14.80B

• Rating: 70 Neutral
• Price Target: $89.00 ▲(10.00% Upside)

Xcel Energy's overall score reflects strong technical indicators and positive earnings call sentiment, offset by financial challenges such as declining profit margins and high leverage. The company's focus on renewable energy and infrastructure investment supports long-term growth prospects.

Positive Factors

Renewable Energy Expansion

Xcel Energy's focus on expanding renewable energy capacity supports its long-term sustainability goals and positions it well in the growing clean energy market.

Infrastructure Investment

Significant infrastructure investments indicate Xcel Energy's commitment to enhancing system reliability and meeting future energy demands, supporting long-term growth.

Long-term Growth Objectives

Strong growth objectives for earnings and dividends demonstrate Xcel Energy's strategic focus on delivering shareholder value and expanding its market presence.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs and competitive pressures, which could impact Xcel Energy's profitability and financial health over time.

High Leverage

Increased leverage heightens financial risk and may limit Xcel Energy's ability to invest in growth opportunities, affecting long-term financial stability.

Negative Cash Flow

Persistent negative cash flow indicates challenges in generating sufficient cash from operations, potentially constraining Xcel Energy's investment capacity and financial flexibility.

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 demonstrates stable revenue growth and strong profitability margins, but faces challenges with high leverage and negative free cash flow. The company efficiently generates cash from operations, yet the reliance on debt and negative free cash flow growth could impact financial flexibility. Overall, the financial health is solid but requires careful management of debt and cash flow.

Income Statement

Xcel Energy's income statement shows a stable performance with a slight revenue growth of 1.79% in the TTM period. The company maintains healthy margins with a gross profit margin of 34.29% and a net profit margin of 14.85%. EBIT and EBITDA margins are also strong at 20.99% and 42.00%, respectively. However, the gross profit margin has decreased from previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.06, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 10.41%, suggesting efficient use of equity. The equity ratio stands at 27.82%, reflecting a balanced asset structure but highlighting the reliance on debt financing.

Cash Flow

Cash flow analysis shows a challenging scenario with negative free cash flow and a free cash flow to net income ratio of -22.66%. Although operating cash flow is strong, the negative free cash flow growth rate suggests potential liquidity issues. The operating cash flow to net income ratio is robust at 5.5, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.39B	13.44B	14.21B	15.31B	13.43B	11.53B
Gross Profit	8.45B	6.15B	5.98B	5.86B	5.26B	4.96B
EBITDA	5.38B	5.59B	5.20B	5.08B	4.60B	4.32B
Net Income	1.92B	1.94B	1.77B	1.74B	1.60B	1.47B
Balance Sheet
Total Assets	79.15B	70.03B	64.08B	61.19B	57.85B	53.96B
Cash, Cash Equivalents and Short-Term Investments	1.05B	179.00M	129.00M	111.00M	166.00M	129.00M
Total Debt	34.64B	30.21B	27.51B	26.03B	24.74B	22.21B
Total Liabilities	57.97B	50.51B	46.46B	44.51B	42.24B	39.38B
Stockholders Equity	21.18B	19.52B	17.62B	16.68B	15.61B	14.57B
Cash Flow
Free Cash Flow	-2.27B	-2.72B	-527.00M	-706.00M	-2.06B	-2.52B
Operating Cash Flow	4.54B	4.64B	5.33B	3.93B	2.19B	2.85B
Investing Cash Flow	-9.72B	-7.43B	-5.93B	-4.65B	-4.29B	-4.74B
Financing Cash Flow	4.69B	2.84B	617.00M	666.00M	2.13B	1.77B

Xcel Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.91
• 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 80.91 is above the 20-day moving average (MA) of 80.85, above the 50-day MA of 77.69, and above the 200-day MA of 70.98, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 57.51 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
AEP	72 Outperform	$65.00B	17.77	12.85%	3.08%	7.66%	37.42%
EXC	72 Outperform	$46.69B	16.54	10.31%	3.46%	6.07%	15.20%
XEL	70 Neutral	$47.86B	24.68	9.45%	2.79%	3.32%	-2.30%
DUK	69 Neutral	$96.16B	20.22	9.92%	3.40%	4.80%	14.44%
SO	69 Neutral	$100.69B	22.73	13.06%	2.99%	9.40%	-6.05%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
D	63 Neutral	$52.58B	20.95	9.27%	4.53%	12.72%	4.90%

Xcel Energy Corporate Events

Xcel Energy’s Earnings Call: Strong Performance Amid Challenges

Xcel Energy’s recent earnings call painted a picture of robust financial health and strategic foresight, despite facing some notable challenges. The company reported strong financial performance, significant infrastructure investments, and a commitment to renewable energy expansion. However, it also acknowledged the impact of a substantial charge related to wildfire settlements and rising operational costs.

Xcel Energy Reports Q3 2025 Earnings and Strategic Outlook

Xcel Energy Inc., a prominent player in the utility sector, is known for its commitment to providing reliable electric and natural gas services across multiple states in the U.S., with a strong focus on infrastructure investment and renewable energy integration.

Xcel Energy Issues $900M Junior Subordinated Notes

On October 7, 2025, Xcel Energy Inc. issued $900 million in 6.25% Junior Subordinated Notes due 2085, under an agreement with major financial institutions including BofA Securities and J.P. Morgan. This move is part of their financial strategy to strengthen their capital structure and support long-term growth, impacting their operational capabilities and market positioning.

The most recent analyst rating on (XEL) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy Settles Marshall Fire Claims for $640M

Xcel Energy has reached settlement agreements related to the Marshall Fire that occurred in Boulder County, Colorado, in December 2021. The settlements, which involve multiple parties, will see Xcel Energy’s subsidiary, Public Service Company of Colorado, pay approximately $640 million, with $350 million covered by insurance. Despite the financial impact, Xcel Energy reaffirms its 2025 earnings guidance, indicating confidence in its financial stability and ongoing operations.

The most recent analyst rating on (XEL) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

Xcel Energy’s Rate Increase Approved for 2025

In November 2024, Northern States Power Company, a subsidiary of Xcel Energy, filed for an electric rate increase in Minnesota, requesting a $491 million revenue boost over two years. The Minnesota Public Utilities Commission approved interim rates of $192 million for 2025. Various stakeholders, including the Minnesota Department of Commerce and Walmart, proposed adjustments to the rate request, focusing on reducing the return on equity and other expenses. A decision by the MPUC is anticipated in the third quarter of 2026.

The most recent analyst rating on (XEL) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.

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.