NEXTERA ENERGY INC (1NEE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NEE - US65339F1012 - Common Stock
73.03 EUR
-0.95 (-1.28%)
We assign a fundamental rating of 4 out of 10 to 1NEE. 1NEE was compared to 28 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1NEE had positive earnings in the past year.
1NEE had a positive operating cash flow in the past year.
Each year in the past 5 years 1NEE has been profitable.
In the past 5 years 1NEE always reported a positive cash flow from operatings.
1.2 Ratios
1NEE has a Return On Assets (3.18%) which is comparable to the rest of the industry.
1NEE has a better Return On Equity (12.00%) than 71.43% of its industry peers.
1NEE's Return On Invested Capital of 2.97% is in line compared to the rest of the industry. 1NEE outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NEE is below the industry average of 7.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROIC | 2.97% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.32%
ROIC(5y)2.98%
1.3 Margins
The Profit Margin of 1NEE (24.72%) is better than 96.43% of its industry peers.
1NEE's Profit Margin has improved in the last couple of years.
1NEE has a better Operating Margin (28.15%) than 89.29% of its industry peers.
1NEE's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.15% | ||
| PM (TTM) | 24.72% | ||
| GM | N/A |
OM growth 3Y19.72%
OM growth 5Y0.9%
PM growth 3Y10.26%
PM growth 5Y7.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
1NEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1NEE has been increased compared to 1 year ago.
The number of shares outstanding for 1NEE has been increased compared to 5 years ago.
1NEE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that 1NEE is in the distress zone and has some risk of bankruptcy.
1NEE has a Altman-Z score (1.12) which is comparable to the rest of the industry.
1NEE has a debt to FCF ratio of 30.30. This is a negative value and a sign of low solvency as 1NEE would need 30.30 years to pay back of all of its debts.
1NEE has a better Debt to FCF ratio (30.30) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.65 is on the high side and indicates that 1NEE has dependencies on debt financing.
The Debt to Equity ratio of 1NEE (1.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.45
WACC6.6%
2.3 Liquidity
1NEE has a Current Ratio of 0.55. 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 has a Current ratio of 0.55. This is in the lower half of the industry: 1NEE underperforms 64.29% of its industry peers.
A Quick Ratio of 0.45 indicates that 1NEE may have some problems paying its short term obligations.
1NEE has a worse Quick ratio (0.45) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.19% over the past year.
The Earnings Per Share has been growing by 10.36% on average over the past years. This is quite good.
Looking at the last year, 1NEE shows a small growth in Revenue. The Revenue has grown by 0.20% in the last year.
1NEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.21% yearly.
EPS 1Y (TTM)8.19%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.71%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
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.
The Revenue is expected to grow by 7.93% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
EPS Next 5Y7.53%
Revenue Next Year5%
Revenue Next 2Y7.64%
Revenue Next 3Y8.22%
Revenue Next 5Y7.93%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.82, 1NEE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as 1NEE.
Compared to an average S&P500 Price/Earnings ratio of 26.15, 1NEE is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.07, the valuation of 1NEE can be described as rather expensive.
1NEE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.12. 1NEE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 21.07 |
4.2 Price Multiples
1NEE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NEE indicates a somewhat cheap valuation: 1NEE is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.66 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1NEE does not grow enough to justify the current Price/Earnings ratio.
1NEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.2
EPS Next 2Y8.17%
EPS Next 3Y8.43%
5. Dividend
5.1 Amount
1NEE has a Yearly Dividend Yield of 2.78%.
Compared to an average industry Dividend Yield of 3.96, 1NEE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, 1NEE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 70.10% 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.
DP70.1%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
BIT:1NEE (11/24/2025, 7:00:00 PM)
73.03
-0.95 (-1.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap150.39B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts75.83
Price Target77.31 (5.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend1.78
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.53%
Min EPS beat(2)2.96%
Max EPS beat(2)8.09%
EPS beat(4)3
Avg EPS beat(4)3.02%
Min EPS beat(4)-0.12%
Max EPS beat(4)8.09%
EPS beat(8)6
Avg EPS beat(8)4.26%
EPS beat(12)10
Avg EPS beat(12)5.42%
EPS beat(16)14
Avg EPS beat(16)5.3%
Revenue beat(2)0
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-10.09%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-11.33%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-1.93%
Revenue beat(8)1
Avg Revenue beat(8)-7.44%
Revenue beat(12)4
Avg Revenue beat(12)-2.37%
Revenue beat(16)5
Avg Revenue beat(16)-4.92%
PT rev (1m)8.54%
PT rev (3m)7.66%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-7.12%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-6.44%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 21.07 | ||
| P/S | 6.62 | ||
| P/FCF | 56.66 | ||
| P/OCF | 14.55 | ||
| P/B | 3.21 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 18.26 |
EPS(TTM)3.2
EY4.38%
EPS(NY)3.47
Fwd EY4.75%
FCF(TTM)1.29
FCFY1.77%
OCF(TTM)5.02
OCFY6.87%
SpS11.03
BVpS22.73
TBVpS20.69
PEG (NY)2.81
PEG (5Y)2.2
Graham Number40.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROCE | 4.08% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.09% | ||
| OM | 28.15% | ||
| PM (TTM) | 24.72% | ||
| GM | N/A | ||
| FCFM | 11.69% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.32%
ROIC(5y)2.98%
ROICexc(3y)3.36%
ROICexc(5y)3.02%
ROICexgc(3y)3.55%
ROICexgc(5y)3.18%
ROCE(3y)4.53%
ROCE(5y)4.06%
ROICexgc growth 3Y23.72%
ROICexgc growth 5Y-2.61%
ROICexc growth 3Y23.46%
ROICexc growth 5Y-2.83%
OM growth 3Y19.72%
OM growth 5Y0.9%
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 | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 130.64% | ||
| Cap/Sales | 33.82% | ||
| Interest Coverage | 2.15 | ||
| Cash Conversion | 84.2% | ||
| Profit Quality | 47.26% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.12 |
F-Score4
WACC6.6%
ROIC/WACC0.45
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)8.19%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.71%
EPS Next Y8.13%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
Revenue Next Year5%
Revenue Next 2Y7.64%
Revenue Next 3Y8.22%
Revenue Next 5Y7.93%
EBIT growth 1Y-12.76%
EBIT growth 3Y35.51%
EBIT growth 5Y6.15%
EBIT Next Year72.93%
EBIT Next 3Y30.63%
EBIT Next 5Y20.93%
FCF growth 1Y355.87%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y27.07%
OCF growth 3Y20.64%
OCF growth 5Y10.21%
NEXTERA ENERGY INC / 1NEE.MI FAQ
What is the fundamental rating for 1NEE stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1NEE.MI.
What is the valuation status for 1NEE stock?
ChartMill assigns a valuation rating of 3 / 10 to NEXTERA ENERGY INC (1NEE.MI). This can be considered as Overvalued.
How profitable is NEXTERA ENERGY INC (1NEE.MI) stock?
NEXTERA ENERGY INC (1NEE.MI) has a profitability rating of 6 / 10.
How financially healthy is NEXTERA ENERGY INC?
The financial health rating of NEXTERA ENERGY INC (1NEE.MI) is 1 / 10.
What is the earnings growth outlook for NEXTERA ENERGY INC?
The Earnings per Share (EPS) of NEXTERA ENERGY INC (1NEE.MI) is expected to grow by 8.13% in the next year.