NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
81.53 USD
-0.16 (-0.2%)
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.
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.
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 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.
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 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.
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.
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 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.
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 20.26 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.64 | ||
| EV/EBITDA | 17.84 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 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 | 22.04 | ||
| 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 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 5Y7.63%
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.