Logo image of NEE

NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis

USA - NYSE:NEE - US65339F1012 - Common Stock

81.53 USD
-0.16 (-0.2%)
Last: 11/5/2025, 10:00:09 AM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 47 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. NEE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year NEE was profitable.
NEE had a positive operating cash flow in the past year.
Each year in the past 5 years NEE has been profitable.
NEE had a positive operating cash flow in each of the past 5 years.
NEE Yearly Net Income VS EBIT VS OCF VS FCFNEE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

1.2 Ratios

NEE has a Return On Assets of 3.18%. This is in the better half of the industry: NEE outperforms 65.96% of its industry peers.
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.
NEE's Return On Invested Capital of 3.58% is on the low side compared to the rest of the industry. NEE is outperformed by 68.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.90%.
Industry RankSector 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%
NEE Yearly ROA, ROE, ROICNEE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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.
In the last couple of years the Profit Margin of NEE has grown nicely.
NEE has a Operating Margin of 28.15%. This is amongst the best in the industry. NEE outperforms 93.62% of its industry peers.
NEE's Operating Margin has been stable in the last couple of years.
Industry RankSector 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
NEE Yearly Profit, Operating, Gross MarginsNEE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEE is destroying value.
Compared to 1 year ago, NEE has more shares outstanding
NEE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NEE is higher compared to a year ago.
NEE Yearly Shares OutstandingNEE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
NEE Yearly Total Debt VS Total AssetsNEE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

NEE has an Altman-Z score of 1.10. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NEE (1.10) is better than 63.83% of its industry peers.
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's Debt to FCF ratio of 30.30 is fine compared to the rest 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.
NEE has a Debt to Equity ratio of 1.65. This is in the lower half of the industry: NEE underperforms 68.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF 30.3
Altman-Z 1.1
ROIC/WACC0.51
WACC7%
NEE Yearly LT Debt VS Equity VS FCFNEE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B

2.3 Liquidity

A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
With a Current ratio value of 0.55, NEE is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.45, NEE is not doing good in the industry: 82.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.45
NEE Yearly Current Assets VS Current LiabilitesNEE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.19% over the past year.
NEE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.36% yearly.
NEE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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

NEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.63% yearly.
Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 8.05% on average per year.
EPS Next Y8.29%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
EPS Next 5Y7.63%
Revenue Next Year4.96%
Revenue Next 2Y7.23%
Revenue Next 3Y7.8%
Revenue Next 5Y8.05%

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.
NEE Yearly Revenue VS EstimatesNEE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
NEE Yearly EPS VS EstimatesNEE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

NEE is valuated rather expensively with a Price/Earnings ratio of 22.04.
74.47% of the companies in the same industry are cheaper than NEE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (26.03), we can say NEE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.26, the valuation of NEE can be described as rather expensive.
76.60% of the companies in the same industry are cheaper than NEE, based on the Price/Forward Earnings ratio.
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 RankSector Rank
PE 22.04
Fwd PE 20.26
NEE Price Earnings VS Forward Price EarningsNEE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 78.72% of the companies listed in the same industry.
74.47% of the companies in the same industry are more expensive than NEE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 54.64
EV/EBITDA 17.84
NEE Per share dataNEE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)2.66
PEG (5Y)2.13
EPS Next 2Y8.33%
EPS Next 3Y8.51%

4

5. Dividend

5.1 Amount

NEE has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
NEE's Dividend Yield is comparable with the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.38, NEE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.77%

5.2 History

On average, the dividend of NEE grows each year by 10.61%, which is quite nice.
NEE has paid a dividend for at least 10 years, which is 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
NEE Yearly Dividends per shareNEE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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%
NEE Yearly Income VS Free CF VS DividendNEE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B
NEE Dividend Payout.NEE Dividend Payout, showing the Payout Ratio.NEE Dividend Payout.PayoutRetained Earnings

NEXTERA ENERGY INC

NYSE:NEE (11/5/2025, 10:00:09 AM)

81.53

-0.16 (-0.2%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-22 2026-01-22/amc
Inst Owners83.01%
Inst Owner Change-0.56%
Ins Owners0.06%
Ins Owner Change-1.79%
Market Cap167.89B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target89.65 (9.96%)
Short Float %1.46%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield 2.77%
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date11-21 2025-11-21 (0.5665)
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 RankSector Rank
PE 22.04
Fwd PE 20.26
P/S 6.38
P/FCF 54.64
P/OCF 14.03
P/B 3.1
P/tB 3.4
EV/EBITDA 17.84
EPS(TTM)3.7
EY4.54%
EPS(NY)4.03
Fwd EY4.94%
FCF(TTM)1.49
FCFY1.83%
OCF(TTM)5.81
OCFY7.13%
SpS12.77
BVpS26.31
TBVpS23.96
PEG (NY)2.66
PEG (5Y)2.13
Graham Number46.8
Profitability
Industry RankSector 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 RankSector 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 5Y7.63%
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 5Y8.05%
EBIT growth 1Y-12.76%
EBIT growth 3Y35.51%
EBIT growth 5Y6.15%
EBIT Next Year72.93%
EBIT Next 3Y30.63%
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 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.