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Xcel Energy Inc. (0M1R.L)

Company Dividend Discount ModelIndustry: General UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$58.06 - $118.12$81.19
Multi-Stage$53.03 - $57.85$55.40
Blended Fair Value$68.30
Current Price$80.65
Upside-15.32%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.24%7.67%2.031.891.751.611.481.371.261.241.171.05
YoY Growth--7.60%7.91%8.24%9.23%8.22%8.36%1.25%5.95%12.19%8.04%
Dividend Yield--2.87%3.54%2.59%2.24%2.22%2.26%2.27%2.74%2.64%2.50%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,915.00
(-) Cash Dividends Paid (M)1,258.00
(=) Cash Retained (M)657.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)383.00239.38143.63
Cash Retained (M)657.00657.00657.00
(-) Cash Required (M)-383.00-239.38-143.63
(=) Excess Retained (M)274.00417.63513.38
(/) Shares Outstanding (M)579.25579.25579.25
(=) Excess Retained per Share0.470.720.89
LTM Dividend per Share2.172.172.17
(+) Excess Retained per Share0.470.720.89
(=) Adjusted Dividend2.642.893.06
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.33%5.33%6.33%
Fair Value$58.06$81.19$118.12
Upside / Downside-28.01%0.67%46.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,915.002,017.022,124.472,237.652,356.862,482.422,556.89
Payout Ratio65.69%70.55%75.42%80.28%85.14%90.00%92.50%
Projected Dividends (M)1,258.001,423.081,602.171,796.312,006.592,234.182,365.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.33%5.33%6.33%
Year 1 PV (M)1,292.231,304.621,317.00
Year 2 PV (M)1,321.091,346.541,372.23
Year 3 PV (M)1,344.991,384.031,423.83
Year 4 PV (M)1,364.291,417.351,471.95
Year 5 PV (M)1,379.361,446.741,516.74
PV of Terminal Value (M)24,016.5025,189.7926,408.50
Equity Value (M)30,718.4632,089.0833,510.26
Shares Outstanding (M)579.25579.25579.25
Fair Value$53.03$55.40$57.85
Upside / Downside-34.24%-31.31%-28.27%

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