NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
NYSE:NEE - New York Stock Exchange, Inc. - US65339F1012 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 46 industry peers in the Electric Utilities industry. NEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NEE had positive earnings in the past year.
In the past year NEE had a positive cash flow from operations.
NEE had positive earnings in each of the past 5 years.
Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
NEE has a Return On Assets (2.84%) which is in line with its industry peers.
The Return On Equity of NEE (11.06%) is better than 73.91% of its industry peers.
With a Return On Invested Capital value of 3.84%, NEE perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEE is significantly below the industry average of 45.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.06% | ||
| ROIC | 3.84% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.99%
ROIC(5y)3.56%
1.3 Margins
The Profit Margin of NEE (21.81%) is better than 95.65% of its industry peers.
NEE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.26%, NEE belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
NEE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.26% | ||
| PM (TTM) | 21.81% | ||
| GM | N/A |
OM growth 3Y19.72%
OM growth 5Y1.81%
PM growth 3Y10.26%
PM growth 5Y7.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEE is destroying value.
Compared to 1 year ago, NEE has more shares outstanding
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 1.06, 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 1.06, NEE is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
The Debt to FCF ratio of NEE is 20.36, which is on the high side as it means it would take NEE, 20.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.36, NEE belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
A Debt/Equity ratio of 1.65 is on the high side and indicates that NEE has dependencies on debt financing.
NEE's Debt to Equity ratio of 1.65 is in line compared to the rest of the industry. NEE outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 20.36 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.54
WACC7.11%
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 65.22% 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 has a Quick ratio of 0.45. This is in the lower half of the industry: NEE underperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
NEE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 8.00%.
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 decrease in Revenue. The Revenue has decreased by -6.86% 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%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%8.79%
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%9%
3.2 Future
Based on estimates for the next years, NEE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.94% on average per year.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y8.36%
EPS Next 3Y8.67%
EPS Next 5Y8.94%
Revenue Next Year3.08%
Revenue Next 2Y6.26%
Revenue Next 3Y6.83%
Revenue Next 5Y6.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 20.61, which indicates a rather expensive current valuation of NEE.
Compared to the rest of the industry, the Price/Earnings ratio of NEE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.60. NEE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.96, the valuation of NEE can be described as rather expensive.
NEE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, NEE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 17.96 |
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 69.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NEE is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.81 | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.54
PEG (5Y)1.99
EPS Next 2Y8.36%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, NEE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, NEE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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
NEE pays out 78.82% of its income as dividend. This is not a sustainable payout ratio.
NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.82%
EPS Next 2Y8.36%
EPS Next 3Y8.67%
NYSE:NEE (5/21/2025, 12:48:10 PM)
72.34
-2.07 (-2.78%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.4%
Inst Owner Change1.38%
Ins Owners0.06%
Ins Owner Change7.13%
Market Cap148.92B
Analysts77.78
Price Target84.07 (16.22%)
Short Float %1.63%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP78.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-0.12%
Max EPS beat(2)1.14%
EPS beat(4)2
Avg EPS beat(4)0.43%
Min EPS beat(4)-2.94%
Max EPS beat(4)3.63%
EPS beat(8)6
Avg EPS beat(8)4.46%
EPS beat(12)10
Avg EPS beat(12)5.71%
EPS beat(16)14
Avg EPS beat(16)4.92%
Revenue beat(2)0
Avg Revenue beat(2)-16.64%
Min Revenue beat(2)-24.58%
Max Revenue beat(2)-8.71%
Revenue beat(4)0
Avg Revenue beat(4)-14.81%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-7.56%
Revenue beat(8)3
Avg Revenue beat(8)-3.81%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)5
Avg Revenue beat(16)-6.8%
PT rev (1m)-2.65%
PT rev (3m)-3.22%
EPS NQ rev (1m)-3.8%
EPS NQ rev (3m)-3.34%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-3.23%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-3.77%
Revenue NY rev (3m)-4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 17.96 | ||
| P/S | 5.89 | ||
| P/FCF | 33.81 | ||
| P/OCF | 11.5 | ||
| P/B | 2.99 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 17.85 |
EPS(TTM)3.51
EY4.85%
EPS(NY)4.03
Fwd EY5.57%
FCF(TTM)2.14
FCFY2.96%
OCF(TTM)6.29
OCFY8.7%
SpS12.27
BVpS24.2
TBVpS21.83
PEG (NY)2.54
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.06% | ||
| ROCE | 4.31% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 4.01% | ||
| OM | 29.26% | ||
| PM (TTM) | 21.81% | ||
| GM | N/A | ||
| FCFM | 17.43% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.99%
ROIC(5y)3.56%
ROICexc(3y)4.05%
ROICexc(5y)3.6%
ROICexgc(3y)4.27%
ROICexgc(5y)3.79%
ROCE(3y)4.53%
ROCE(5y)4.03%
ROICexcg growth 3Y23.72%
ROICexcg growth 5Y-1.72%
ROICexc growth 3Y23.46%
ROICexc growth 5Y-1.95%
OM growth 3Y19.72%
OM growth 5Y1.81%
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 | 20.36 | ||
| Debt/EBITDA | 6.15 | ||
| Cap/Depr | 143.67% | ||
| Cap/Sales | 33.83% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 97.08% | ||
| Profit Quality | 79.95% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.06 |
F-Score4
WACC7.11%
ROIC/WACC0.54
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%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%8.79%
EPS Next Y8.13%
EPS Next 2Y8.36%
EPS Next 3Y8.67%
EPS Next 5Y8.94%
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%9%
Revenue Next Year3.08%
Revenue Next 2Y6.26%
Revenue Next 3Y6.83%
Revenue Next 5Y6.8%
EBIT growth 1Y-16.4%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year76.35%
EBIT Next 3Y29.93%
EBIT Next 5Y18.97%
FCF growth 1Y349.86%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y62.45%
OCF growth 3Y20.64%
OCF growth 5Y10.21%