NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
69.83 USD
-1.67 (-2.34%)
70.2596 USD
+0.43 (+0.62%)
NEE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. NEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, NEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NEE had positive earnings in the past year.
NEE had a positive operating cash flow in the past year.
Each year in the past 5 years NEE has been profitable.
In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
NEE has a better Return On Assets (2.98%) than 60.42% of its industry peers.
Looking at the Return On Equity, with a value of 11.65%, NEE is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of NEE (3.82%) is worse than 62.50% of its industry peers.
NEE had an Average Return On Invested Capital over the past 3 years of 3.99%. This is in line with the industry average of 5.43%.
| 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 has a Profit Margin of 22.84%. This is amongst the best in the industry. NEE outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of NEE has grown nicely.
NEE has a better Operating Margin (29.52%) than 93.75% of its industry peers.
NEE's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEE is destroying value.
NEE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEE has more shares outstanding
NEE has a worse debt/assets ratio than last year.
2.2 Solvency
NEE has an Altman-Z score of 1.01. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, NEE is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
NEE has a debt to FCF ratio of 24.95. This is a negative value and a sign of low solvency as NEE would need 24.95 years to pay back of all of its debts.
NEE has a better Debt to FCF ratio (24.95) than 72.92% of its industry peers.
NEE has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
NEE has a worse Debt to Equity ratio (1.72) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.57
WACC6.76%
2.3 Liquidity
A Current Ratio of 0.54 indicates that NEE may have some problems paying its short term obligations.
The Current ratio of NEE (0.54) is worse than 87.50% of its industry peers.
NEE has a Quick 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.
The Quick ratio of NEE (0.45) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
NEE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
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 small growth in Revenue. The Revenue has grown by 0.19% in the last year.
The Revenue has been growing slightly by 5.21% on average over the past years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 19.40 indicates a rather expensive valuation of NEE.
NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 62.50% of the companies in the same industry.
NEE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.45, which indicates a rather expensive current valuation of NEE.
NEE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (22.71), we can say NEE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEE is valued a bit more expensive than the industry average as 79.17% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEE indicates a somewhat cheap valuation: NEE is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.5 | ||
| EV/EBITDA | 16.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.87
EPS Next 2Y8%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 7.96%, which is a nice return.
NEE's Dividend Yield is rather good when compared to the industry average which is at 3.47. NEE pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NEE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.96% |
5.2 History
On average, the dividend of NEE grows each year by 10.61%, which is quite nice.
NEE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NEE decreased 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.
NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP75.25%
EPS Next 2Y8%
EPS Next 3Y8.36%
69.83
-1.67 (-2.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change-0.8%
Ins Owners0.06%
Ins Owner Change-1.36%
Market Cap143.80B
Analysts75.2
Price Target83.2 (19.15%)
Short Float %2.02%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.96% |
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)-0.5%
PT rev (3m)0.49%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.45 | ||
| P/S | 5.55 | ||
| P/FCF | 38.5 | ||
| P/OCF | 11.78 | ||
| P/B | 2.83 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)3.6
EY5.16%
EPS(NY)4
Fwd EY5.73%
FCF(TTM)1.81
FCFY2.6%
OCF(TTM)5.93
OCFY8.49%
SpS12.58
BVpS24.67
TBVpS22.3
PEG (NY)2.47
PEG (5Y)1.87
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 | 1.01 |
F-Score4
WACC6.76%
ROIC/WACC0.57
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 Year71.22%
EBIT Next 3Y30.26%
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%