NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
83.35 USD
-0.36 (-0.43%)
82.7143 USD
-0.64 (-0.76%)
NEE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 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 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.
In the past 5 years NEE has always been profitable.
NEE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.98%, NEE is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
The Return On Equity of NEE (11.65%) is better than 61.70% of its industry peers.
NEE's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. NEE outperforms 40.43% 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 4.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 11.65% | ||
| ROIC | 3.82% |
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
NEE's Profit Margin of 22.84% is amongst the best of the industry. NEE outperforms 97.87% 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 29.52%, NEE belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
In the last couple of years the Operating Margin of NEE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.52% | ||
| PM (TTM) | 22.84% | ||
| 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
NEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEE has more shares outstanding than it did 1 year ago.
NEE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEE has a worse debt to assets ratio.
2.2 Solvency
NEE has an Altman-Z score of 1.12. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
NEE's Altman-Z score of 1.12 is fine compared to the rest of the industry. NEE outperforms 65.96% of its industry peers.
The Debt to FCF ratio of NEE is 24.95, which is on the high side as it means it would take NEE, 24.95 years of fcf income to pay off all of its debts.
NEE has a better Debt to FCF ratio (24.95) than 74.47% of its industry peers.
A Debt/Equity ratio of 1.72 is on the high side and indicates that NEE has dependencies on debt financing.
The Debt to Equity ratio of NEE (1.72) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.55
WACC6.97%
2.3 Liquidity
NEE has a Current Ratio of 0.54. 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 Current ratio of 0.54. This is amonst the worse of the industry: NEE underperforms 87.23% of its industry peers.
A Quick Ratio of 0.45 indicates that NEE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.45, NEE is doing worse than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% over the past year.
The Earnings Per Share has been growing by 10.36% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.19% in the past year.
NEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.21% yearly.
EPS 1Y (TTM)8.11%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.38%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
3.2 Future
Based on estimates for the next years, NEE will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
The Revenue is expected to grow by 7.93% on average over the next years.
EPS Next Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue Next Year4.61%
Revenue Next 2Y7.2%
Revenue Next 3Y7.82%
Revenue Next 5Y7.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.15, which indicates a rather expensive current valuation of NEE.
NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 74.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (27.02), we can say NEE is valued inline with the index average.
NEE is valuated rather expensively with a Price/Forward Earnings ratio of 20.83.
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 (22.57), we can say NEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 20.83 |
4.2 Price Multiples
80.85% 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 a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.96 | ||
| EV/EBITDA | 18.48 |
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)2.95
PEG (5Y)2.23
EPS Next 2Y8%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.71%.
NEE's Dividend Yield is slightly below the industry average, which is at 3.40.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 75.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.25%
EPS Next 2Y8%
EPS Next 3Y8.36%
83.35
-0.36 (-0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change0.17%
Ins Owners0.06%
Ins Owner Change-1.79%
Market Cap171.64B
Analysts75.83
Price Target83.42 (0.08%)
Short Float %1.54%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP75.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)1.14%
Max EPS beat(2)2.96%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.12%
Max EPS beat(4)3.63%
EPS beat(8)6
Avg EPS beat(8)4.1%
EPS beat(12)10
Avg EPS beat(12)5.18%
EPS beat(16)14
Avg EPS beat(16)5.04%
Revenue beat(2)0
Avg Revenue beat(2)-9.4%
Min Revenue beat(2)-10.09%
Max Revenue beat(2)-8.71%
Revenue beat(4)0
Avg Revenue beat(4)-12.74%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-7.56%
Revenue beat(8)2
Avg Revenue beat(8)-7.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-6.06%
PT rev (1m)0.27%
PT rev (3m)0.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 20.83 | ||
| P/S | 6.63 | ||
| P/FCF | 45.96 | ||
| P/OCF | 14.06 | ||
| P/B | 3.38 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)3.6
EY4.32%
EPS(NY)4
Fwd EY4.8%
FCF(TTM)1.81
FCFY2.18%
OCF(TTM)5.93
OCFY7.11%
SpS12.58
BVpS24.67
TBVpS22.3
PEG (NY)2.95
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 11.65% | ||
| ROCE | 4.35% | ||
| ROIC | 3.82% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 3.97% | ||
| OM | 29.52% | ||
| PM (TTM) | 22.84% | ||
| GM | N/A | ||
| FCFM | 14.42% |
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 | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Debt/EBITDA | 6.26 | ||
| Cap/Depr | 133.75% | ||
| Cap/Sales | 32.72% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 87.32% | ||
| Profit Quality | 63.13% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.12 |
F-Score4
WACC6.97%
ROIC/WACC0.55
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)8.11%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.38%
EPS Next Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
Revenue Next Year4.61%
Revenue Next 2Y7.2%
Revenue Next 3Y7.82%
Revenue Next 5Y7.93%
EBIT growth 1Y-0.6%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year72.93%
EBIT Next 3Y30.63%
EBIT Next 5Y20.93%
FCF growth 1Y309.01%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y48.37%
OCF growth 3Y20.64%
OCF growth 5Y10.21%