US65339F1012 - Common Stock

**NEE** gets a fundamental rating of **4** out of 10. The analysis compared the fundamentals against 47 industry peers in the **Electric Utilities** industry. **NEE** scores excellent on profitability, but there are concerns on its financial health. **NEE** is quite expensive at the moment. It does show a decent growth rate.

In the past year **NEE** was profitable.

In the past year **NEE** had a positive cash flow from operations.

Each year in the past 5 years **NEE** has been profitable.

In the past 5 years **NEE** always reported a positive cash flow from operatings.

With a decent **Return On Equity** value of **13.89%**, **NEE** is doing good in the industry, outperforming **75.56%** of the companies in the same industry.

The **Return On Invested Capital** of **NEE** (**4.38%**) is better than **66.67%** of its industry peers.

Measured over the past 3 years, the **Average Return On Invested Capital** for **NEE** is in line with the industry average of **4.79%**.

The last **Return On Invested Capital** (**4.38%**) for **NEE** is above the 3 year average (**3.21%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.74% | ||

ROE | 13.89% | ||

ROIC | 4.38% |

ROA(3y)3.09%

ROA(5y)2.95%

ROE(3y)11.86%

ROE(5y)10.75%

ROIC(3y)3.21%

ROIC(5y)3.45%

In the last couple of years the **Operating Margin** of **NEE** has grown nicely.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 32.34% | ||

PM (TTM) | 26.49% | ||

GM | N/A |

OM growth 3Y9.74%

OM growth 5Y6.62%

PM growth 3Y17.04%

PM growth 5Y-8.11%

GM growth 3YN/A

GM growth 5YN/A

Compared to 1 year ago, **NEE** has more shares outstanding

Compared to 5 years ago, **NEE** has more shares outstanding

Based on the Altman-Z score of **1.12**, we must say that **NEE** is in the distress zone and has some risk of bankruptcy.

The Debt to FCF ratio of **NEE** is **15.35**, which is on the high side as it means it would take **NEE**, **15.35** years of fcf income to pay off all of its debts.

Looking at the **Debt to Equity ratio**, with a value of **1.50**, **NEE** is in line with its industry, outperforming **42.22%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.5 | ||

Debt/FCF | 15.35 | ||

Altman-Z | 1.12 |

ROIC/WACC0.61

WACC7.15%

A Current Ratio of **0.41** indicates that **NEE** may have some problems paying its short term obligations.

Looking at the **Current ratio**, with a value of **0.41**, **NEE** is doing worse than **91.11%** of the companies in the same industry.

A Quick Ratio of **0.33** indicates that **NEE** may have some problems paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.41 | ||

Quick Ratio | 0.33 |

The **Earnings Per Share** has been growing slightly by **7.89%** over the past year.

Measured over the past years, **NEE** shows a quite strong growth in **Earnings Per Share**. The EPS has been growing by **10.50%** on average per year.

The **Revenue** has been growing by **10.94%** on average over the past years. This is quite good.

EPS 1Y (TTM)7.89%

EPS 3Y11.2%

EPS 5Y10.5%

EPS Q2Q%9.57%

Revenue 1Y (TTM)-4.22%

Revenue growth 3Y16.03%

Revenue growth 5Y10.94%

Sales Q2Q%5.51%

Based on estimates for the next years, **NEE** will show a small growth in **Revenue**. The Revenue will grow by **7.08%** on average per year.

EPS Next Y8.55%

EPS Next 2Y8.18%

EPS Next 3Y8.34%

EPS Next 5Y8.59%

Revenue Next Year2.72%

Revenue Next 2Y5.79%

Revenue Next 3Y6.6%

Revenue Next 5Y7.08%

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

Based on the **Price/Earnings** ratio of **22.51**, the valuation of **NEE** can be described as rather expensive.

80.00% of the companies in the same industry are cheaper than **NEE**, based on the **Price/Earnings** ratio.

The average S&P500 **Price/Earnings** ratio is at **29.30**. **NEE** is valued slightly cheaper when compared to this.

A **Price/Forward Earnings** ratio of **20.68** indicates a rather expensive valuation of **NEE**.

The average S&P500 **Price/Forward Earnings** ratio is at **23.90**. **NEE** is around the same levels.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 22.51 | ||

Fwd PE | 20.68 |

82.22% 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 cheaply inside the industry as 82.22% of the companies are valued more expensively.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 29.36 | ||

EV/EBITDA | 16.01 |

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.

PEG (NY)2.63

PEG (5Y)2.14

EPS Next 2Y8.18%

EPS Next 3Y8.34%

With a **Yearly Dividend Yield** of **2.76%**, **NEE** has a reasonable but not impressive dividend return.

Compared to an average S&P500 **Dividend Yield** of **2.21**, **NEE** pays a bit more dividend than the S&P500 average.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.76% |

On average, the dividend of **NEE** grows each year by **11.09%**, which is quite nice.

The dividend of **NEE** decreased in the last 3 years.

Dividend Growth(5Y)11.09%

Div Incr Years2

Div Non Decr Years2

The dividend of **NEE** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP59.48%

EPS Next 2Y8.18%

EPS Next 3Y8.34%

**NEXTERA ENERGY INC**

NYSE:NEE (11/8/2024, 8:09:49 PM)

After market: 76.97 0 (0%)**76.97**

**+2.35 (+3.15%) **

Chartmill FA Rating

GICS SectorUtilities

GICS IndustryGroupUtilities

GICS IndustryElectric Utilities

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap158.28B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.76% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

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Revenue beat(4)

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Revenue beat(8)

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Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 22.51 | ||

Fwd PE | 20.68 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)2.63

PEG (5Y)2.14

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.74% | ||

ROE | 13.89% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 32.34% | ||

PM (TTM) | 26.49% | ||

GM | N/A | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.14

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.5 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.41 | ||

Quick Ratio | 0.33 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)7.89%

EPS 3Y11.2%

EPS 5Y

EPS Q2Q%

EPS Next Y8.55%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-4.22%

Revenue growth 3Y16.03%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y