NEXTERA ENERGY INC (1NEE.MI) Stock Fundamental Analysis
Europe - BIT:1NEE - US65339F1012 - Common Stock
61.19 EUR
+3.48 (+6.03%)
1NEE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. There are concerns on the financial health of 1NEE while its profitability can be described as average. 1NEE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1NEE was profitable.
1NEE had a positive operating cash flow in the past year.
1NEE had positive earnings in each of the past 5 years.
1NEE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NEE has a worse Return On Assets (2.98%) than 61.11% of its industry peers.
With a Return On Equity value of 11.65%, 1NEE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
1NEE has a worse Return On Invested Capital (3.18%) than 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NEE is below the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 11.65% | ||
| ROIC | 3.18% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.32%
ROIC(5y)2.96%
1.3 Margins
1NEE has a better Profit Margin (22.84%) than 88.89% of its industry peers.
1NEE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.52%, 1NEE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NEE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.52% | ||
| PM (TTM) | 22.84% | ||
| GM | N/A |
OM growth 3Y19.72%
OM growth 5Y1.81%
PM growth 3Y10.26%
PM growth 5Y7.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1NEE is destroying value.
1NEE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1NEE has more shares outstanding
Compared to 1 year ago, 1NEE has a worse debt to assets ratio.
2.2 Solvency
1NEE has an Altman-Z score of 1.03. This is a bad value and indicates that 1NEE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1NEE (1.03) is worse than 66.67% of its industry peers.
1NEE has a debt to FCF ratio of 24.95. This is a negative value and a sign of low solvency as 1NEE would need 24.95 years to pay back of all of its debts.
1NEE has a Debt to FCF ratio (24.95) which is in line with its industry peers.
A Debt/Equity ratio of 1.72 is on the high side and indicates that 1NEE has dependencies on debt financing.
1NEE has a worse Debt to Equity ratio (1.72) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.49
WACC6.53%
2.3 Liquidity
1NEE has a Current Ratio of 0.54. This is a bad value and indicates that 1NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1NEE (0.54) is worse than 88.89% of its industry peers.
1NEE has a Quick Ratio of 0.54. This is a bad value and indicates that 1NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
1NEE's Quick ratio of 0.45 is on the low side compared to the rest of the industry. 1NEE is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
1NEE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
The Earnings Per Share has been growing by 10.36% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.19% in the past year.
Measured over the past years, 1NEE shows a small growth in Revenue. The Revenue has been growing by 5.21% on average per year.
EPS 1Y (TTM)8.11%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.38%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
3.2 Future
1NEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.53% yearly.
1NEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.96% yearly.
EPS Next Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue Next Year4.83%
Revenue Next 2Y7.23%
Revenue Next 3Y7.83%
Revenue Next 5Y7.96%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.74, the valuation of 1NEE can be described as rather expensive.
1NEE's Price/Earnings is on the same level as the industry average.
1NEE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
1NEE is valuated rather expensively with a Price/Forward Earnings ratio of 17.75.
The rest of the industry has a similar Price/Forward Earnings ratio as 1NEE.
1NEE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NEE is valued a bit more expensive than 72.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NEE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.16 | ||
| EV/EBITDA | 16.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.52
PEG (5Y)1.9
EPS Next 2Y8%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
1NEE has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
1NEE's Dividend Yield is slightly below the industry average, which is at 4.08.
Compared to an average S&P500 Dividend Yield of 2.42, 1NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of 1NEE is nicely growing with an annual growth rate of 10.61%!
Dividend Growth(5Y)10.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1NEE pays out 75.25% of its income as dividend. This is not a sustainable payout ratio.
1NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP75.25%
EPS Next 2Y8%
EPS Next 3Y8.36%
BIT:1NEE (9/23/2025, 7:00:00 PM)
61.19
+3.48 (+6.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap126.01B
Analysts76.15
Price Target71.23 (16.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.78
Dividend Growth(5Y)10.61%
DP75.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)1.14%
Max EPS beat(2)2.96%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.12%
Max EPS beat(4)3.63%
EPS beat(8)6
Avg EPS beat(8)4.1%
EPS beat(12)10
Avg EPS beat(12)5.18%
EPS beat(16)14
Avg EPS beat(16)5.04%
Revenue beat(2)0
Avg Revenue beat(2)-9.4%
Min Revenue beat(2)-10.09%
Max Revenue beat(2)-8.71%
Revenue beat(4)0
Avg Revenue beat(4)-12.74%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-7.56%
Revenue beat(8)2
Avg Revenue beat(8)-7.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-6.06%
PT rev (1m)-0.81%
PT rev (3m)-3.53%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)-3.35%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.75 | ||
| P/S | 5.65 | ||
| P/FCF | 39.16 | ||
| P/OCF | 11.98 | ||
| P/B | 2.88 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)3.1
EY5.07%
EPS(NY)3.45
Fwd EY5.63%
FCF(TTM)1.56
FCFY2.55%
OCF(TTM)5.11
OCFY8.35%
SpS10.83
BVpS21.25
TBVpS19.21
PEG (NY)2.52
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 11.65% | ||
| ROCE | 4.35% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 3.3% | ||
| OM | 29.52% | ||
| PM (TTM) | 22.84% | ||
| GM | N/A | ||
| FCFM | 14.42% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.32%
ROIC(5y)2.96%
ROICexc(3y)3.36%
ROICexc(5y)2.99%
ROICexgc(3y)3.55%
ROICexgc(5y)3.15%
ROCE(3y)4.53%
ROCE(5y)4.03%
ROICexcg growth 3Y23.72%
ROICexcg growth 5Y-1.72%
ROICexc growth 3Y23.46%
ROICexc growth 5Y-1.95%
OM growth 3Y19.72%
OM growth 5Y1.81%
PM growth 3Y10.26%
PM growth 5Y7.41%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Debt/EBITDA | 6.26 | ||
| Cap/Depr | 133.75% | ||
| Cap/Sales | 32.72% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 87.32% | ||
| Profit Quality | 63.13% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.03 |
F-Score4
WACC6.53%
ROIC/WACC0.49
Cap/Depr(3y)168.8%
Cap/Depr(5y)166%
Cap/Sales(3y)38.28%
Cap/Sales(5y)38.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.38%
EPS Next Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
Revenue Next Year4.83%
Revenue Next 2Y7.23%
Revenue Next 3Y7.83%
Revenue Next 5Y7.96%
EBIT growth 1Y-0.6%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year71.22%
EBIT Next 3Y30.26%
EBIT Next 5Y20.93%
FCF growth 1Y309.01%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y48.37%
OCF growth 3Y20.64%
OCF growth 5Y10.21%