NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
82.19 USD
+0.21 (+0.26%)
82.39 USD
+0.2 (+0.24%)
Overall NEE gets a fundamental rating of 4 out of 10. We evaluated NEE against 46 industry peers in the Electric Utilities industry. While NEE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, NEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year NEE was profitable.
- In the past year NEE had a positive cash flow from operations.
- NEE had positive earnings in each of the past 5 years.
- In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
- NEE has a Return On Assets of 3.18%. This is in the better half of the industry: NEE outperforms 67.39% of its industry peers.
- NEE has a Return On Equity of 12.00%. This is in the better half of the industry: NEE outperforms 63.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.58%, NEE is doing worse than 67.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NEE is in line with the industry average of 4.58%.
| 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's Profit Margin of 24.72% is amongst the best of the industry. NEE outperforms 97.83% of its industry peers.
- In the last couple of years the Profit Margin of NEE has grown nicely.
- Looking at the Operating Margin, with a value of 28.15%, NEE belongs to the top of the industry, outperforming 95.65% 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.
- The number of shares outstanding for NEE has been increased compared to 5 years ago.
- Compared to 1 year ago, NEE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.11, we must say that NEE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.11, NEE is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
- The Debt to FCF ratio of NEE is 30.30, which is on the high side as it means it would take NEE, 30.30 years of fcf income to pay off all of its debts.
- NEE has a Debt to FCF ratio of 30.30. This is amongst the best in the industry. NEE outperforms 80.43% of its industry peers.
- NEE has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
- NEE's Debt to Equity ratio of 1.65 is on the low side compared to the rest of the industry. NEE is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.51
WACC7.04%
2.3 Liquidity
- A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
- The Current ratio of NEE (0.55) is worse than 86.96% of its industry peers.
- A Quick Ratio of 0.45 indicates that NEE may have some problems paying its short term obligations.
- NEE has a Quick ratio of 0.45. This is amonst the worse of the industry: NEE underperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- NEE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.19%, which is quite good.
- Measured over the past years, NEE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.36% on average per year.
- Looking at the last year, NEE shows a small growth in Revenue. The Revenue has grown by 0.20% in the last year.
- Measured over the past years, NEE shows a small growth in Revenue. The Revenue has been growing by 5.21% on average per year.
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
- The Earnings Per Share is expected to grow by 8.28% on average over the next years. This is quite good.
- Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y8.42%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
EPS Next 5Y8.28%
Revenue Next Year5.87%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y8.54%
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 22.21, NEE is valued on the expensive side.
- Based on the Price/Earnings ratio, NEE is valued a bit more expensive than 76.09% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, NEE is valued at the same level.
- NEE is valuated rather expensively with a Price/Forward Earnings ratio of 20.33.
- Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than the industry average as 76.09% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, NEE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEE is valued expensively inside the industry as 80.43% of the companies are valued cheaper.
- 78.26% of the companies in the same industry are more expensive than NEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.7 | ||
| EV/EBITDA | 18.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEE does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)2.14
EPS Next 2Y8.57%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
- NEE has a Yearly Dividend Yield of 7.11%, which is a nice return.
- NEE's Dividend Yield is rather good when compared to the industry average which is at 3.46. NEE pays more dividend than 100.00% of the companies in the same industry.
- NEE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
5.2 History
- The dividend of NEE is nicely growing with an annual growth rate of 10.61%!
- NEE has been paying a dividend for at least 10 years, so it has a reliable track record.
- NEE has decreased its dividend 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.
- The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP70.1%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
82.19
+0.21 (+0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-23 2026-01-23/amc
Inst Owners83.16%
Inst Owner Change-0.22%
Ins Owners0.05%
Ins Owner Change-1.01%
Market Cap171.17B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (11.8%)
Short Float %1.73%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.05%
PT rev (3m)10.15%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)4.85%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 20.33 | ||
| P/S | 6.51 | ||
| P/FCF | 55.7 | ||
| P/OCF | 14.3 | ||
| P/B | 3.16 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 18.05 |
EPS(TTM)3.7
EY4.5%
EPS(NY)4.04
Fwd EY4.92%
FCF(TTM)1.48
FCFY1.8%
OCF(TTM)5.75
OCFY6.99%
SpS12.63
BVpS26.02
TBVpS23.69
PEG (NY)2.64
PEG (5Y)2.14
Graham Number46.54
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 | 1.11 |
F-Score4
WACC7.04%
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 Y8.42%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
EPS Next 5Y8.28%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
Revenue Next Year5.87%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y8.54%
EBIT growth 1Y-12.76%
EBIT growth 3Y35.51%
EBIT growth 5Y6.15%
EBIT Next Year70.26%
EBIT Next 3Y29.32%
EBIT Next 5Y19.85%
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 4 / 10 to NEE.
Can you provide the valuation status for NEXTERA ENERGY INC?
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.
Can you provide the financial health for NEE stock?
The financial health rating of NEXTERA ENERGY INC (NEE) is 2 / 10.
What is the expected EPS growth for NEXTERA ENERGY INC (NEE) stock?
The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 8.42% in the next year.