Top 15 Regulated Electric Stocks
Marvin's rules rank 15 regulated electric stocks. NextEra Energy, Genie Energy and American Electric Power have the highest Overall scores, which compare each company with others in its own industry.
Regulated electric companies generate, transmit or deliver power to customers under rules set by government regulators. That usually means steady, predictable revenue, but also heavy spending on equipment and often a lot of borrowing. This list shows the 15 stocks in the Regulated Electric industry that Marvin's rules score highest today.
When you read the picks, keep in mind that a high score does not make a company the best fit for everyone. Look at the figures behind it: how fast revenue is growing, how much of each sales dollar becomes profit, how much cash is left over, and how much debt the company carries.
Three tickers on this list, DTE, DTG and DTB, show the same underlying financial figures, so their differences come mainly from their Marvin quality and opportunity scores. Some figures are missing for some companies, and the blurbs say so where it matters.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size threshold and ranked them by Marvin scores. The Regulated Electric industry list is ordered with the highest Overall score first. Each score is relative to the company's own industry, so it describes how a company compares with other regulated electric companies today, not how it compares with every stock in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Regulated Electric industry, highest Overall score first.
The stocks, one by one
NextEra Energy, Inc. NEE
NextEra Energy has Marvin's top Overall score at 96, helped by a quality score of 97 and an operating margin of 29.5%, which suggests strong profitability. Caution: debt-to-equity of 1.87 shows it relies on borrowing, and free cash flow margin is not available.
Genie Energy Ltd. GNE
Genie Energy scores 93 overall, with revenue growth of 18.1% and very low debt-to-equity of 0.03. Caution: its operating margin is only 4.1%, so profits are thin compared with most others on this list.
American Electric Power Company, Inc. AEP
American Electric Power has a quality score of 94, an operating margin of 24.0% and a free cash flow margin of 11.6%, pointing to solid profitability and positive cash generation. Caution: its opportunity score is only 59, and debt-to-equity of 1.65 is notable.
Public Service Enterprise Group Incorporated PEG
Public Service Enterprise Group combines revenue growth of 18.3% with an operating margin of 23.1%, a mix of expansion and healthy profitability. Caution: free cash flow margin is just 2.2%, so little revenue turned into spare cash last year.
Eversource Energy ES
Eversource Energy has an Overall score of 85, revenue growth of 13.8% and an operating margin of 21.5%, suggesting steady growth with good margins. Caution: return on equity is a modest 8.9%, and free cash flow margin is only 2.1%.
DTE Energy Company DTE
DTE Energy shows some of the fastest revenue growth on this list at 26.9%, with an operating margin of 13.1% and an opportunity score of 90. Caution: its quality score is 71, and debt-to-equity of 2.07 is among the higher ones here.
Consolidated Edison, Inc. ED
Consolidated Edison has a quality score of 82 and revenue growth of 10.9%, with an operating margin of 17.4% that suggests decent profitability. Caution: return on equity is a modest 8.4%, and debt-to-equity data is not available, so its debt load cannot be judged here.
OGE Energy Corp. OGE
OGE Energy has a quality score of 88, an operating margin of 23.9% and debt-to-equity of 1.19, which is relatively low for this group. Caution: revenue growth of 9.2% is modest, and its opportunity score is 65.
Ameren Corporation AEE
Ameren has revenue growth of 15.4%, an operating margin of 24.9% and return on equity of 11.5%, a solid operating picture. Caution: free cash flow margin is negative at -16.0%, meaning more cash went out than came in after investment.
DTE Energy Company 2021 Series DTG
DTE Energy 2021 Series carries the same company figures as DTE, including growth of 26.9% and an operating margin of 13.1%. Its quality score is 69. Caution: debt-to-equity of 2.07 is high, and free cash flow margin is not available.
DTE Energy Company 2020 Series DTB
DTE Energy 2020 Series shares DTE's company figures, with growth of 26.9% and an operating margin of 13.1%. Its opportunity score is 84. Caution: its quality score is only 66, and debt-to-equity of 2.07 is high.
Edison International EIX
Edison International has a strong operating margin of 30.8%, return on equity of 20.5% and an opportunity score of 93. Caution: its quality score is only 25, free cash flow margin is negative at -3.3%, and debt-to-equity is 2.47.
WEC Energy Group, Inc. WEC
WEC Energy Group has a gross margin of 65.7%, an operating margin of 22.8% and revenue growth of 14.0%, suggesting healthy profitability. Caution: its opportunity score is a moderate 62, and free cash flow margin is not available.
MGE Energy, Inc. MGEE
MGE Energy has lower debt-to-equity of 0.70 than most companies on this list, and an operating margin of 22.3%. Caution: free cash flow margin is negative at -17.0%, and revenue growth of 9.9% is modest.
Duke Energy Corporation DUK
Duke Energy has an operating margin of 27.2% and a quality score of 63, pointing to solid core profitability. Caution: revenue growth is just 6.2%, free cash flow margin is negative at -9.9%, and its opportunity score is only 46.
Common questions
What is a regulated electric company?
It is a utility that supplies electricity to customers in an area where government regulators oversee the rates it can charge. This usually makes revenue more predictable, but the business needs a lot of investment in equipment and often carries significant debt.
Why do some stocks on this list show identical financial figures?
DTE, DTG and DTB show the same growth, margin, return on equity and debt figures in Marvin's data, so those numbers appear to come from the same company. Their Marvin scores differ, which is why they sit at different places in the ranking.
Does a higher Overall score mean a stock is a better choice?
No. Marvin's scores only describe how a company compares with other regulated electric companies today. They are not predictions or advice, so it helps to check the figures behind each score, such as margins, growth, cash flow and debt.
Keep reading
- Top 15 Utilities Stocks by Marvin's Opportunity Score
- Top 15 Utilities Stocks With the Strongest Businesses
- Top 15 Utilities Stocks by Marvin Scores
- Top 20 Small-Cap Stocks Ranked by Marvin Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.