NEXTERA ENERGY INC (NEE)
US65339F1012 - Common Stock
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 47 industry peers in the Electric Utilities industry. NEE scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, NEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NEE was profitable.
NEE had a positive operating cash flow in the past year.
NEE had positive earnings in each of the past 5 years.
In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
NEE's Return On Assets of 3.74% is fine compared to the rest of the industry. NEE outperforms 75.56% of its industry peers.
NEE has a Return On Equity of 13.89%. This is in the better half of the industry: NEE outperforms 75.56% of its industry peers.
With a decent Return On Invested Capital value of 4.38%, NEE is doing good in the industry, outperforming 68.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.65%.
The last Return On Invested Capital (4.38%) for NEE is above the 3 year average (3.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 13.89% | ||
| ROIC | 4.38% |
ROA(3y)3.09%
ROA(5y)2.95%
ROE(3y)11.86%
ROE(5y)10.75%
ROIC(3y)3.21%
ROIC(5y)3.45%
1.3 Margins
With an excellent Profit Margin value of 26.49%, 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 Profit Margin of NEE has declined.
NEE's Operating Margin of 32.34% is amongst the best of the industry. NEE outperforms 100.00% of its industry peers.
NEE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.34% | ||
| PM (TTM) | 26.49% | ||
| GM | N/A |
OM growth 3Y9.74%
OM growth 5Y6.62%
PM growth 3Y17.04%
PM growth 5Y-8.11%
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.
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.
2.2 Solvency
NEE has an Altman-Z score of 1.11. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
NEE has a Altman-Z score of 1.11. This is in the better half of the industry: NEE outperforms 68.89% of its industry peers.
The Debt to FCF ratio of NEE is 15.35, which is on the high side as it means it would take NEE, 15.35 years of fcf income to pay off all of its debts.
NEE's Debt to FCF ratio of 15.35 is fine compared to the rest of the industry. NEE outperforms 80.00% of its industry peers.
NEE has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEE (1.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.61
WACC7.23%
2.3 Liquidity
NEE has a Current Ratio of 0.41. This is a bad value and indicates that NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.41, NEE is doing worse than 91.11% of the companies in the same industry.
NEE has a Quick Ratio of 0.41. This is a bad value and indicates that NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.33, NEE is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.89% 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 10.50% yearly.
Looking at the last year, NEE shows a decrease in Revenue. The Revenue has decreased by -4.22% in the last year.
Measured over the past years, NEE shows a quite strong growth in Revenue. The Revenue has been growing by 10.94% on average per year.
EPS 1Y (TTM)7.89%
EPS 3Y11.2%
EPS 5Y10.5%
EPS Q2Q%9.57%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y16.03%
Revenue growth 5Y10.94%
Sales Q2Q%5.51%
3.2 Future
NEE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.59% yearly.
NEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.08% yearly.
EPS Next Y8.55%
EPS Next 2Y8.18%
EPS Next 3Y8.34%
EPS Next 5Y8.59%
Revenue Next Year2.72%
Revenue Next 2Y5.79%
Revenue Next 3Y6.6%
Revenue Next 5Y7.08%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.32 indicates a rather expensive valuation of NEE.
Based on the Price/Earnings ratio, NEE is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 28.53, NEE is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.52 indicates a rather expensive valuation of NEE.
NEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (23.40), we can say NEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
82.22% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
NEE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEE is cheaper than 82.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.12 | ||
| EV/EBITDA | 15.77 |
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.
NEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)2.13
EPS Next 2Y8.18%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.76%.
NEE's Dividend Yield is slightly below the industry average, which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.21, NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of NEE is nicely growing with an annual growth rate of 11.09%!
NEE has been paying a dividend for at least 10 years, so it has a reliable track record.
NEE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.09%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NEE pays out 59.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.48%
EPS Next 2Y8.18%
EPS Next 3Y8.34%
NEXTERA ENERGY INC
NYSE:NEE (11/15/2024, 8:04:00 PM)
After market: 76.4 +0.05 (+0.07%)76.35
+1.07 (+1.42%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap157.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.61
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 13.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.34% | ||
| PM (TTM) | 26.49% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.89%
EPS 3Y11.2%
EPS 5Y
EPS Q2Q%
EPS Next Y8.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y16.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y