Exelon Corp

Exelon Corporation (EXC) reported a net income of $440 million in its 2Q14 earnings. The quarterly net income was $14 million lower year-over-year (or YoY).

Dominion Resources (D) depends upon both internal and external sources of financing for its capital expenses and dividend payments.

In the past couple of months, institutions have increased their positions in Exelon by nearly 2%, from 85.6% to 87.2%, as of October 3, 2016.

American Electric Power (AEP) has an attractive debt profile, with the company’s debt making up just 7% of its consolidated debt.

Duke Energy rallied 9% in 2016, roughly tracking the Utilities Select Sector SPDR. Dominion Resources rose 12% in 2016, while Peer NextEra Energy rose 15%.

NiSource (NI) reported its 2Q16 earnings on August 2, 2016. It reported net operating earnings of $0.08 per share in the quarter.

Of the total 18 analysts tracking NextEra Energy on December 27, 2016, five recommend it as “strong buy” while 11 recommend it as a “buy.” Two analysts recommend NextEra Energy as a “hold,” and none of the analysts offered a “sell” recommendation.

American Electric Power (AEP), one of the largest utilities in the country, has declared a dividend of $0.59 per share for the third quarter of 2017.

NRG Energy (NRG), the leading merchant power player stock and one of the smallest components of the S&P 500 Utilities Index (XLU), has a mean price target of $36.50 against its current market price of $31.20.

Exelon Corporation (EXC) reported its third quarter earnings on October 26, 2016. It reported earnings of $0.91 per share for the quarter.

On December 13, the S&P 500, Dow Jones Industrial Average, and Nasdaq rose 0.65%, 0.58%, and 0.95%. They closed at record highs.

Of the 41 utilities stocks we track, 30 gained during the week ended July 17. A positive Greek deal cheered markets globally, and dovish comments by the Fed pushed mid-to-long-term bond yields down.

Investment-grade bond issuance fell to $26.275 billion last week as compared to $32.35 billion in the previous week.

In this series, we’re analyzing analysts’ favorite stocks from the S&P 500 Utilities Index (XLU). We’ll look at Exelon (EXC) in this part.

Exelon (EXC) is currently trading at a 4% and 13% premium to its 50-day and 200-day moving averages, respectively. The strong premium indicates the strength of Exelon stock.

Hybrid utility FirstEnergy (FE) is presently trading at one of the highest dividend yields of 4.9%.

On November 8, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).

At the end of 2Q16, AEP had total debt of $21.6 billion. Its DE ratio stands at 1.2x, while its debt-to-market-capitalization ratio is 0.7x.

NRG Energy (NRG) stock has a mean target price of $33.25, which indicates an upside potential of more than 23% for the next 12 months.

Exelon Corporation’s (EXC) power generation assets are spread across 18 states in the U.S. and some parts of Canada. Regional diversity is very important.

FirstEnergy (FE) reported its third quarter financial results on November 4, 2016. It reported total operating revenue of $3.92 billion for the quarter.

Analyst price target According to Wall Street analysts’ consensus, Duke Energy (DUK) stock has a mean price target of $82.30 and a current market price of $77.20, suggesting upside potential of 6.5% in the next 12 months. Among the 18 Wall Street analysts tracking Duke Energy on February 26, 2018, one had recommended “strong buy,” four had recommended “buy,” […]

Exelon (EXC) stock has corrected nearly 2% in the last year. Including dividends, its returns have come in at ~3%.

Exelon Corporation’s (EXC) stock has been hammered in the last six years. In 2008, the stock was trading at ~$90 per share. Early this year, the stock was available at less than $27 per share.

On June 26, Greek Prime Minister Alexis Tsipras called for a July 5 referendum to decide whether Greeks want to accept the creditors’ terms.

Chart inspection is the basic form of technical analysis. In technical analysis charts, we can customize the time frames in the charts. We can also identify different trends in different time frames.

Exelon Corporation (EXC) is the largest competitive utility in the country. All of the top five institutional investors increased their positions in Exelon in 4Q17.

Dominion Resources (D) gained 12% in 2016, while the Utilities Select Sector SPDR (XLU) also managed to gain by about the same levels.

Duke Energy is trading at $77.5. Wall Street analysts gave Duke Energy a mean target price of $81.5.

The stock of Exelon Corporation (EXC), the largest hybrid utility and the largest utility by revenue, has a mean price target of $43.2.

PPL rose the least in the past year among the list of low implied volatility utility stocks. It announced its 4Q16 financial results on February 1.

On January 11, 2017, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).

Utilities underperformed in 2015 mainly due to the expected interest rate hike environment. So, how will utilities react in 2016?

The US saw a nominal uptick in weekly electricity production for the week ended February 6, 2015. US electricity production increased by 1.6%.

Forward multiples are a useful metric for gauging relative valuation. A higher multiple usually indicates a richer valuation for a company.

Institutional investors hold most of Dominion Resources’ (D) outstanding shares. As of June 30, 2014, a total of 351.2 million shares were held by 1,069 institutions.

Power generation is a significant segment for Exelon, generating more than 60% of its total revenue. The energy delivery business provides the other 40% of the company’s revenues.

The defensives and utilities sector fell more than 2% last week while broader markets fell just 0.3%. Here’s why.

Currently, the Utilities Select Sector SPDR ETF (XLU) is trading at $58.2 after hitting an all-time high of $58.7 last week.

Exelon’s (EXC) EV-to-EBITDA (enterprise value-to-EBITDA) multiple is 7.57x.

FirstEnergy (FE) has been one of the top-performing stocks among the S&P 500 Utilities Index (XLU) this year.

Exelon Corporation (EXC) is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple below 8.0x.

According to analysts’ estimates, NextEra Energy (NEE) will report EPS (earnings per share) of $1.31 for the quarter ended December 31, 2017.

AES (AES) has upside potential of 19% from its current price levels of $10.9. Wall Street analysts have given it a price target of $12.9.

Very few utility stocks from the S&P 500 Utilities Index (XLU) are currently trading at a fair valuation.

Over the last five years, five nuclear power plants have shut down their operations, and another six are planning to close by 2025.

US utilities including giants like Duke Energy (DUK) and Southern Company (SO) have done fairly well in the last few months compared to broader markets.

US utilities continued to trade higher throughout 2016, despite some severe corrections. But how are these stocks valued at the beginning of 2017?

Exelon Corporation (EXC) is trading at a dividend yield of 3.5%, and FirstEnergy (FE) is trading at a dividend yield of 4.6%. Public Service Enterprise Group (PEG) has a yield of 3.8%.

Exelon Corporation (EXC) had net debt of $34 billion at the end of 3Q16. EXC has a net debt-to-EBITDA ratio of 4.5x, slightly above the industry average.

On December 21, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).

On December 15, 2016, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF.

On December 6, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).

At the end of 3Q16, Duke Energy (DUK) had total debt of $50 billion, and its debt-to-equity ratio comes in around 1.24x.

Duke Energy’s (DUK) adjusted return on equity stayed below 8% due to volatile earnings from international operations. This ROE was on the lower side of the industry average.

Exelon is trading at a fair valuation compared to last month. This change is more or less due to its sharp correction in August.

Duke Energy (DUK) posted its 2Q16 earnings on August 4, 2016. It reported 13% rise in its earnings year-over-year and earned $1.07 per share in the reported quarter.

Commonwealth Edison Company is a unit of Exelon Corporation (EXC). It issued A2/A- rated high-grade bonds worth $1.2 billion through two parts on June 20.

As of June 22, 2016, NRG Energy (NRG) has the highest implied volatility figure of all utility companies at 48.5.

Exelon (EXC) is currently trading at a forward dividend yield of 3.6%, with an expected dividend growth rate of slightly under 2% for the next two years.

Last month’s PJM Interconnection auction cleared 167,306 megawatts of capacity, which came in at more competitive prices than last year.

Lower natural gas prices, slower electricity demand growth, and incentives for renewables have all fueled the recent power generation transition.

AEP’s free cash flow for 2015 declined to $218 million from $367 million in 2014.

Over the next few years, AEP management will be targeting annual earnings growth of 4% to 6%, strongly supported by the company’s regulated operations.

NextEra Energy (NEE), the largest utility by market capitalization, has risen more than 15% since the beginning of the year.

On May 2, 2016, Oracle (ORCL) announced the acquisition of Opower (OPWR), a cloud service software provider in the utility space.

American Electric Power and FirstEnergy (FE) closed down by 2.5% and 11%, respectively, on April 28 when federal regulators blocked income guarantees for their power plants.

Public Service Enterprise Group’s (PEG) management reiterated its fiscal 2016 earnings guidance range of $2.80–$3.00 per share.

Mergers and acquisitions drove Exelon Corporation’s (EXC) growth in the last few years. Its acquisition of Constellation Energy in 2012 catalyzed its performance due to healthy capacity addition.

American Electric Power’s (AEP) Vertically Integrated Utilities segment plays a key role in driving its performance, accounting for more than half of its total operating income.

Pacific Gas and Electric (PCG) is planning to spend nearly $28 billion on capital projects in the next five years.

Southern Company (SO) continues to focus on its generation facilities for capacity addition. It intends to spend $18 billion over the next three years.

On February 1, 2016, Standard & Poor’s downgraded Dominion Resources to a credit rating of BBB+ with a stable outlook. The move came after Dominion announced its merger with Questar.

NextEra Energy had total debt of $29.7 billion as of December 31, 2015. Of this, $26.7 billion is long-term, and $3 billion is short-term.

With AGL Resources’ (GAS) acquisition, Southern Company’s regulated revenues are expected to increase.

Following NextEra Energy’s 4Q15 earnings, analysts have a one-year price target of $119 for NEE against its current market price of $108.

As of September 30, 2015, Southern Company had total debt of $27 billion against equity of $20.6 billion. Of this, $22.3 billion is long-term debt.

Utilities showed a dismal performance in 2015 due to the fear of higher interest rates. The shares of NextEra rose sharply in December 2015 by gaining 8%.

Public Service Enterprise (PEG) has a strong dividend-paying history, and it has maintained an annual dividend growth rate of 2.6% in the last five years.

As of September 30, 2015, Southern Company had a total debt of $27 billion, against equity of $20.6 billion.

Southern Company (SO) is set to report its quarterly earnings for the period ended December 31, 2015, on February 3, 2016.

Southern Company expects its natural gas usage to rise to 52%, while it expects its coal usage to fall to 29% by 2020, compared to 2014 levels.

Despite a near-zero demand growth in the electric business, Southern Company (SO) has maintained fair growth in its cash flow from operations.

After its acquisition of AGL Resources, SO is expected to serve nine-million customers collectively, making it the second-largest utility by customer base.

PPL segregated its unregulated business from its regulated business in 2015. The strategic move may have a positive impact on the company’s earnings.

Utilities (XLU) are an asset-heavy business, so they carry huge debt. Last year, the utility sector underperformed mainly because of a fear of interest rates heading higher.

US utilities (IDU) had a dismal performance in 2015 in part due to the fear of higher interest rates.

Debt profile PPL (PPL) is looking to strengthen its regulated business by investing $18 billion in the next five years. This funding will mainly be done by long-term debt financing. As of September 30, 2015, the company has total debt of $19.7 billion against equity of $10.2 billion. Of this total debt, $17.7 billion is long-term debt. […]

PPL is concentrated in the UK. It manages utility operations through PPL Global, PPL Electric, Louisville Gas and Electric, and Kentucky Utilities.

Moody’s expects electricity demand to remain subdued in 2016 due to energy efficient programs and milder weather. It reaffirmed a “stable” outlook.

FirstEnergy’s revenues are primarily derived from electric services provided by ten subsidiaries. The company serves a combined population of ~13.5 million.

Utilities (XLU) require major funding for infrastructure upgradation and asset maintenance purposes. As a result, they constantly need funds.

Dominion Resources has a dividend yield of 3.7% as of December 8, 2015. Dominion has shown a healthy and steady rise in its dividend payouts since 2008.

In the last few years, Exelon’s (EXC) long-term borrowing has increased and pushed leverage upwards.

Demand growth for electricity in the last decade has been sluggish due to increasingly energy-efficient devices and equipment.

Exelon (EXC) manages end-to-end operations in the power utilities segment through its subsidiaries.

Exelon (EXC) is a dominant energy player in the US that operates in energy generation, transmission, and delivery.

The Fed’s monthly index on Industrial Production for October 2015 noted that industrial production missed expectations. It fell by 0.2% in October due to weakness in the utilities and mining sectors.

NextEra Energy (NEE) reported operating income of $1.5 billion in 3Q15 compared to $1.2 billion in 3Q14.

With no major unexpected capital outlays, NextEra Energy’s debt as of September 30, 2015, should be close to its debt as of June 30, 2015.