Valuentum Exclusive Analysis for the Discerning Investor

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Oct 14, 2022

NextEra Energy Is a Great Income Growth Idea
Image Shown: NextEra Energy Inc is a great income growth idea that complies with ESG investing standards as the company is investing heavily in renewable energy power generation assets and battery storage facilities. Image Source: NextEra Energy Inc – June 2022 IR Presentation. NextEra Energy is an attractive dividend growth idea that also complies with ESG investing standards, given its efforts on the renewable energy front. We appreciate the company’s robust capital investment pipeline as that underpins its bright adjusted EPS, operating cash flow, and dividend per share growth outlook through 2025. The utility is best of breed.

Aug 19, 2022

Nelson: The 16 Most Important Steps To Understand The Stock Market
Image Source: Tim Green. We outline the '16 Most Important Steps to Understand the Stock Market.' We think it's important to take a read of these key stock market tenets when things are going great -- and perhaps even more important when things aren't going your way. This continues to be a working document.

Mar 30, 2022

WEC Energy Is a Solid Utility with a Nice Yield
Image Source: WEC Energy Group Inc – March 2022 IR Presentation. WEC Energy Group Inc is a holding company that owns electric and natural gas utilities in the Upper Midwest (Minnesota, Wisconsin, Michigan, and Illinois), a ~60% stake in American Transmission Company (its service area is in the Upper Midwest and overlaps with the operations of WEC Energy’s other utility assets), and the merchant power firm WEC Infrastructure. WEC Energy serves roughly 4.6 million customers across its service area. Some of its electric and natural gas utilities include Upper Michigan Energy Resources Corporation, Wisconsin Public Service Corporation, Minnesota Energy Resources Corporation, Peoples Energy LLC, The Peoples Gas Light and Coke Company, North Shore Gas Company, W.E. Power, Michigan Gas Utilities, and more. The bulk of WEC Energy’s asset base is represented by regulated utility operations which have incredibly stable and predictable cash flow profiles given the regulatory environment these companies operate in.

Mar 4, 2022

NextEra Energy’s Bright Outlook
Image Shown: NextEra Energy Inc, one of our favorite utilities, owns the largest regulated electric utility in Florida and has exposure to the state’s promising population and economic growth trajectory. The utility is shifting its power generation base away from coal and towards renewable energy, leaning on natural gas and nuclear power plants to make the transition feasible. Image Source: NextEra Energy Inc – Fourth Quarter of 2021 IR Earnings Presentation. We are big fans of NextEra Energy. The utility is a cash flow generating powerhouse with a bright adjusted EPS and dividend growth outlook, underpinned by its rapidly growing renewable energy division and exposure to Florida’s promising economic growth trajectory. Shares of NEE yield ~2.2% as of this writing.

Feb 28, 2022

Our Report on Stocks in the Utilities (Mid/Small) Industry
Our report on stocks in the Utilities (mid/small) industry can be found in this article. Report includes AEE, ALE, CNP, CMS, DTE, ES, LNT, MGEE, NI, PEG, PNW, SCG, SJI, SR, SRE, WEC.

Dec 10, 2021

Dividend Increases/Decreases for the Week December 10
Let's take a look at companies that raised/lowered their dividend this week.

Oct 22, 2021

NextEra Energy’s Promising Earnings Growth Outlook Underpins Dividend Growth Trajectory
Image Source: NextEra Energy Inc – Third Quarter of 2021 IR Earnings Presentation. On October 20, the electric utility firm NextEra Energy reported third-quarter 2021 earnings that missed consensus top-line estimates but beat consensus bottom-line estimates. The company reaffirmed its medium-term guidance in conjunction with its earnings report. We include shares of NEE in the ESG Newsletter portfolio and continue to be huge fans of the name. NextEra Energy’s capital appreciation and dividend growth upside potential is quite substantial. Our fair value estimate for shares of NEE stands at $102 per share with room for upside, as the top end of our fair value estimate range sits at $124 per share of NextEra Energy. Shares of NEE yield ~1.8% as of this writing.

Aug 24, 2021

We Continue to Be Big Fans of Ameresco
Image Source: Ameresco Inc – August 2021 IR Presentation. The economic and investment landscape is changing, and Ameresco is well-positioned to capitalize on the “green energy revolution” and growing interest in environmental, social, and governance (‘ESG’) investing standards. Ameresco’s focus on reducing operating costs for its clients while bolstering their green energy credentials and helping secure financing for the relevant projects underpins the value proposition of the company’s offerings. We first covered Ameresco in detail through an article published back in August 2020 and followed up on that work in a subsequent article published in November 2020 and provided a brief update on the firm in a piece published in January 2021. Shares of AMRC have more than doubled since we published our first article covering the name as of mid August 2021, and we think there is ample room for additional capital appreciation upside.

Aug 7, 2021

PPL Corp Updates Investors, Launches Share Buyback Program
Image Source: PPL Corporation – Second Quarter of 2021 IR Earnings Presentation. On August 5, PPL Corp posted second-quarter 2021 earnings, and shares of PPL initially moved higher after the report. Though the gas and electric utility, which has a major regulated utility presence in Kentucky and Pennsylvania, missed both top- and bottom-line estimates, what investors were likely focused on most was the announcement that PPL Corp had approved a $3.0 billion share buyback program. The firm expects to spend $0.5 billion buying back its shares in 2021, and we view this as a solid use of PPL Corp’s capital given our fair value estimate sits at $45 per share of PPL, well above where the utility is trading at as of this writing.

Jun 1, 2021

ICYMI -- Video: Exclusive 2020 -- Furthering the Financial Discipline
In this 40+ minute video jam-packed with must-watch content, Valuentum's President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He'll talk about what companies Valuentum likes and why, and which areas he's avoiding. This and more in Valuentum's 2020 Exclusive conference call.