NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
81.69 USD
-0.09 (-0.11%)
81.5 USD
-0.19 (-0.23%)
NEE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of NEE while its profitability can be described as average. While showing a medium growth rate, NEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NEE had positive earnings in the past year.
NEE had a positive operating cash flow in the past year.
Each year in the past 5 years NEE has been profitable.
Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.18%, NEE is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
NEE's Return On Equity of 12.00% is fine compared to the rest of the industry. NEE outperforms 65.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.58%, NEE is doing worse than 68.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROIC | 3.58% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.99%
ROIC(5y)3.59%
1.3 Margins
NEE has a Profit Margin of 24.72%. This is amongst the best in the industry. NEE outperforms 97.87% of its industry peers.
NEE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.15%, NEE belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
In the last couple of years the Operating Margin of NEE has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEE is destroying value.
The number of shares outstanding for NEE has been increased compared to 1 year ago.
Compared to 5 years ago, NEE has more shares outstanding
The debt/assets ratio for NEE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that NEE is in the distress zone and has some risk of bankruptcy.
NEE has a Altman-Z score of 1.10. This is in the better half of the industry: NEE outperforms 63.83% of its industry peers.
NEE has a debt to FCF ratio of 30.30. This is a negative value and a sign of low solvency as NEE would need 30.30 years to pay back of all of its debts.
NEE has a Debt to FCF ratio of 30.30. This is in the better half of the industry: NEE outperforms 74.47% of its industry peers.
A Debt/Equity ratio of 1.65 is on the high side and indicates that NEE has dependencies on debt financing.
The Debt to Equity ratio of NEE (1.65) is worse than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.51
WACC7%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
NEE has a worse Current ratio (0.55) than 87.23% of its industry peers.
NEE has a Quick Ratio of 0.55. This is a bad value and indicates that NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
NEE's Quick ratio of 0.45 is on the low side compared to the rest of the industry. NEE is outperformed by 82.98% 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.
The Revenue has been growing slightly by 0.20% in the past year.
The Revenue has been growing slightly by 5.21% on average over the past years.
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
Based on estimates for the next years, NEE will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
NEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y8.29%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
EPS Next 5Y7.53%
Revenue Next Year4.96%
Revenue Next 2Y7.23%
Revenue Next 3Y7.8%
Revenue Next 5Y7.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 22.08 indicates a rather expensive valuation of NEE.
72.34% of the companies in the same industry are cheaper than NEE, based on the Price/Earnings ratio.
NEE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 20.30, which indicates a rather expensive current valuation of NEE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 76.60% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (22.27), we can say NEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 20.3 |
4.2 Price Multiples
80.85% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NEE is valued a bit cheaper than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.74 | ||
| EV/EBITDA | 17.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)2.13
EPS Next 2Y8.33%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, NEE has a reasonable but not impressive dividend return.
NEE's Dividend Yield is comparable with the industry average which is at 3.22.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of NEE is nicely growing with an annual growth rate of 10.61%!
NEE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NEE decreased in the last 3 years.
Dividend Growth(5Y)10.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
70.10% of the earnings are spent on dividend by NEE. This is not a sustainable payout ratio.
NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.1%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
81.69
-0.09 (-0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change-0.56%
Ins Owners0.06%
Ins Owner Change-1.79%
Market Cap168.22B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target89.65 (9.74%)
Short Float %1.46%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)2.96%
Max EPS beat(2)10.04%
EPS beat(4)3
Avg EPS beat(4)3.51%
Min EPS beat(4)-0.12%
Max EPS beat(4)10.04%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)5.58%
EPS beat(16)14
Avg EPS beat(16)5.43%
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)7.76%
PT rev (3m)8.95%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 20.3 | ||
| P/S | 6.4 | ||
| P/FCF | 54.74 | ||
| P/OCF | 14.06 | ||
| P/B | 3.1 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 17.86 |
EPS(TTM)3.7
EY4.53%
EPS(NY)4.03
Fwd EY4.93%
FCF(TTM)1.49
FCFY1.83%
OCF(TTM)5.81
OCFY7.11%
SpS12.77
BVpS26.31
TBVpS23.96
PEG (NY)2.66
PEG (5Y)2.13
Graham Number46.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROCE | 4.08% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.63% | ||
| ROICexgc | 3.72% | ||
| 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)3.99%
ROIC(5y)3.59%
ROICexc(3y)4.05%
ROICexc(5y)3.63%
ROICexgc(3y)4.27%
ROICexgc(5y)3.82%
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 | 1.1 |
F-Score4
WACC7%
ROIC/WACC0.51
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 Y8.29%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
Revenue Next Year4.96%
Revenue Next 2Y7.23%
Revenue Next 3Y7.8%
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 / NEE FAQ
What is the fundamental rating for NEE stock?
ChartMill assigns a fundamental rating of 3 / 10 to NEE.
What is the valuation status of NEXTERA ENERGY INC (NEE) stock?
ChartMill assigns a valuation rating of 2 / 10 to NEXTERA ENERGY INC (NEE). This can be considered as Overvalued.
Can you provide the profitability details for NEXTERA ENERGY INC?
NEXTERA ENERGY INC (NEE) has a profitability rating of 6 / 10.
What is the financial health of NEXTERA ENERGY INC (NEE) stock?
The financial health rating of NEXTERA ENERGY INC (NEE) is 1 / 10.
Can you provide the expected EPS growth for NEE stock?
The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 8.29% in the next year.