With a one year PEG ratio of 284.71, NextEra Energy Partners LP is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 88.82% of US stocks.
Of note is the ratio of NextEra Energy Partners LP's sales and general administrative expense to its total operating expenses; just 0.47% of US stocks have a lower such ratio.
The ratio of debt to operating expenses for NextEra Energy Partners LP is higher than it is for about 94.72% of US stocks.
Stocks with similar financial metrics, market capitalization, and price volatility to NextEra Energy Partners LP are NGD, OXSQ, TGB, GLAD, and TPVG.
NextEra Energy Partners, LP Common Units representing limited partner interests (NEP) Company Bio
NextEra Energy Partners LP acquires, owns, and operates contracted clean energy projects. It owns interests in wind and solar projects in North America. The company was founded in 2014 and is based in Juno Beach, Florida.
NEP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for NextEra Energy Partners LP. To summarize, we found that NextEra Energy Partners LP ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 94% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for NEP, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 0.85 -- which is good for besting merely 16.22% of its peer stocks (US stocks in the Utilities sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.67 years comes in at 0.4%; that's greater than 75.21% of US stocks we're applying DCF forecasting to.
NextEra Energy Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Utilities that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NEP, try CWEN, AT, BIP, JE, and TAC.
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