NEXTERA ENERGY INC (NEE) Fundamental Analysis & Valuation

NYSE:NEE • US65339F1012

Current stock price

91.005 USD
-0.31 (-0.33%)
Last:

This NEE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NEE Profitability Analysis

1.1 Basic Checks

  • NEE had positive earnings in the past year.
  • In the past year NEE had a positive cash flow from operations.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • NEE has a better Return On Assets (3.21%) than 72.34% of its industry peers.
  • NEE has a Return On Equity of 12.51%. This is amongst the best in the industry. NEE outperforms 85.11% of its industry peers.
  • The Return On Invested Capital of NEE (3.29%) is worse than 72.34% 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 4.52%.
Industry RankSector Rank
ROA 3.21%
ROE 12.51%
ROIC 3.29%
ROA(3y)3.66%
ROA(5y)3.23%
ROE(3y)13.93%
ROE(5y)12.39%
ROIC(3y)3.9%
ROIC(5y)3.12%
NEE Yearly ROA, ROE, ROICNEE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • NEE's Profit Margin of 24.93% is amongst the best of the industry. NEE outperforms 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of NEE has grown nicely.
  • With an excellent Operating Margin value of 29.26%, NEE belongs to the best of the industry, outperforming 100.00% 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 RankSector Rank
OM 29.26%
PM (TTM) 24.93%
GM N/A
OM growth 3Y19.88%
OM growth 5Y1.26%
PM growth 3Y8.01%
PM growth 5Y8.98%
GM growth 3YN/A
GM growth 5YN/A
NEE Yearly Profit, Operating, Gross MarginsNEE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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2

2. NEE Health Analysis

2.1 Basic Checks

  • NEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for NEE has been increased compared to 1 year ago.
  • Compared to 5 years ago, NEE has more shares outstanding
  • Compared to 1 year ago, NEE has a worse debt to assets ratio.
NEE Yearly Shares OutstandingNEE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
NEE Yearly Total Debt VS Total AssetsNEE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

2.2 Solvency

  • Based on the Altman-Z score of 1.15, 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 1.15, NEE is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
  • The Debt to FCF ratio of NEE is 29.78, which is on the high side as it means it would take NEE, 29.78 years of fcf income to pay off all of its debts.
  • NEE's Debt to FCF ratio of 29.78 is amongst the best of the industry. NEE outperforms 80.85% of its industry peers.
  • A Debt/Equity ratio of 1.69 is on the high side and indicates that NEE has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.69, NEE is doing worse than 65.96% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 29.78
Altman-Z 1.15
ROIC/WACC0.45
WACC7.35%
NEE Yearly LT Debt VS Equity VS FCFNEE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B 80B

2.3 Liquidity

  • NEE has a Current Ratio of 0.60. 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 worse Current ratio (0.60) than 74.47% of its industry peers.
  • NEE has a Quick Ratio of 0.60. 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 0.49. This is comparable to the rest of the industry: NEE outperforms 40.43% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.49
NEE Yearly Current Assets VS Current LiabilitesNEE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NEE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.16% over the past year.
  • The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
  • The Revenue has grown by 10.75% in the past year. This is quite good.
  • Measured over the past years, NEE shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.
EPS 1Y (TTM)8.16%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%1.89%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%20.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
  • NEE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.26% yearly.
EPS Next Y9.16%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
EPS Next 5Y8.46%
Revenue Next Year10.4%
Revenue Next 2Y9.56%
Revenue Next 3Y9.54%
Revenue Next 5Y8.26%

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 stable: in the next years the growth will be about the same than in the last years.
NEE Yearly Revenue VS EstimatesNEE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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2

4. NEE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.53, NEE is valued on the expensive side.
  • 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 (27.33), we can say NEE is valued inline with the index average.
  • The Price/Forward Earnings ratio is 22.47, which indicates a rather expensive current valuation of NEE.
  • Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than the industry average as 76.60% of the companies are valued more cheaply.
  • The average S&P500 Price/Forward Earnings ratio is at 38.16. NEE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 24.53
Fwd PE 22.47
NEE Price Earnings VS Forward Price EarningsNEE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 78.72% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEE indicates a somewhat cheap valuation: NEE is cheaper than 78.72% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 59.1
EV/EBITDA 18.76
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)2.68
PEG (5Y)2.47
EPS Next 2Y9.04%
EPS Next 3Y8.85%

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4

5. NEE Dividend Analysis

5.1 Amount

  • NEE has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.75, NEE is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, NEE pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.64%

5.2 History

  • On average, the dividend of NEE grows each year by 10.05%, which is quite nice.
  • NEE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)10.05%
Div Incr Years0
Div Non Decr Years0
NEE Yearly Dividends per shareNEE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • NEE pays out 68.48% 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.
DP68.48%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
NEE Yearly Income VS Free CF VS DividendNEE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B
NEE Dividend Payout.NEE Dividend Payout, showing the Payout Ratio.NEE Dividend Payout.PayoutRetained Earnings

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NEE Fundamentals: All Metrics, Ratios and Statistics

NEXTERA ENERGY INC

NYSE:NEE (4/15/2026, 3:50:04 PM)

91.005

-0.31 (-0.33%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)01-27
Earnings (Next)04-23
Inst Owners84.1%
Inst Owner Change0.03%
Ins Owners0.06%
Ins Owner Change3.61%
Market Cap189.77B
Revenue(TTM)27.41B
Net Income(TTM)6.83B
Analysts77.42
Price Target95.8 (5.27%)
Short Float %2.34%
Short Ratio5.1
Dividend
Industry RankSector Rank
Dividend Yield 2.64%
Yearly Dividend2.26
Dividend Growth(5Y)10.05%
DP68.48%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.86%
Min EPS beat(2)1.67%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)3.95%
Min EPS beat(4)1.14%
Max EPS beat(4)10.04%
EPS beat(8)6
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)5.49%
EPS beat(16)14
Avg EPS beat(16)5.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-5.97%
Min Revenue beat(4)-10.09%
Max Revenue beat(4)-1.93%
Revenue beat(8)0
Avg Revenue beat(8)-10.27%
Revenue beat(12)4
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-3.86%
PT rev (1m)1.32%
PT rev (3m)4.25%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 24.53
Fwd PE 22.47
P/S 6.92
P/FCF 59.1
P/OCF 15.2
P/B 3.48
P/tB 3.81
EV/EBITDA 18.76
EPS(TTM)3.71
EY4.08%
EPS(NY)4.05
Fwd EY4.45%
FCF(TTM)1.54
FCFY1.69%
OCF(TTM)5.99
OCFY6.58%
SpS13.15
BVpS26.19
TBVpS23.86
PEG (NY)2.68
PEG (5Y)2.47
Graham Number46.7544 (-48.62%)
Profitability
Industry RankSector Rank
ROA 3.21%
ROE 12.51%
ROCE 4.22%
ROIC 3.29%
ROICexc 3.34%
ROICexgc 3.43%
OM 29.26%
PM (TTM) 24.93%
GM N/A
FCFM 11.71%
ROA(3y)3.66%
ROA(5y)3.23%
ROE(3y)13.93%
ROE(5y)12.39%
ROIC(3y)3.9%
ROIC(5y)3.12%
ROICexc(3y)3.96%
ROICexc(5y)3.16%
ROICexgc(3y)4.15%
ROICexgc(5y)3.31%
ROCE(3y)5.04%
ROCE(5y)4.03%
ROICexgc growth 3Y15.81%
ROICexgc growth 5Y-1.06%
ROICexc growth 3Y16.69%
ROICexc growth 5Y-0.68%
OM growth 3Y19.88%
OM growth 5Y1.26%
PM growth 3Y8.01%
PM growth 5Y8.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 29.78
Debt/EBITDA 6.16
Cap/Depr 133.61%
Cap/Sales 33.83%
Interest Coverage 250
Cash Conversion 83.45%
Profit Quality 46.99%
Current Ratio 0.6
Quick Ratio 0.49
Altman-Z 1.15
F-Score4
WACC7.35%
ROIC/WACC0.45
Cap/Depr(3y)145.54%
Cap/Depr(5y)161.45%
Cap/Sales(3y)34.06%
Cap/Sales(5y)37.99%
Profit Quality(3y)46.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.16%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%1.89%
EPS Next Y9.16%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
EPS Next 5Y8.46%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%20.71%
Revenue Next Year10.4%
Revenue Next 2Y9.56%
Revenue Next 3Y9.54%
Revenue Next 5Y8.26%
EBIT growth 1Y12.51%
EBIT growth 3Y31.1%
EBIT growth 5Y10.15%
EBIT Next Year91.22%
EBIT Next 3Y32.77%
EBIT Next 5Y20.01%
FCF growth 1Y-32.34%
FCF growth 3YN/A
FCF growth 5Y21.04%
OCF growth 1Y-5.84%
OCF growth 3Y14.75%
OCF growth 5Y9.36%

NEXTERA ENERGY INC / NEE Fundamental Analysis 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.


What is the profitability of NEE stock?

NEXTERA ENERGY INC (NEE) has a profitability rating of 6 / 10.


What is the valuation of NEXTERA ENERGY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for NEXTERA ENERGY INC (NEE) is 24.53 and the Price/Book (PB) ratio is 3.48.


What is the earnings growth outlook for NEXTERA ENERGY INC?

The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 9.16% in the next year.