NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
NYSE:NEE - New York Stock Exchange, Inc. - US65339F1012 - Common Stock - Currency: USD
NEE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of NEE while its profitability can be described as average. NEE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NEE was profitable.
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.
1.2 Ratios
The Return On Assets of NEE (3.65%) is better than 78.38% of its industry peers.
The Return On Equity of NEE (13.86%) is better than 75.68% of its industry peers.
NEE has a Return On Invested Capital (3.86%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 13.86% | ||
| ROIC | 3.86% |
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
Looking at the Profit Margin, with a value of 28.06%, NEE belongs to the top 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 grown nicely.
NEE has a better Operating Margin (28.80%) than 97.30% of its industry peers.
NEE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.8% | ||
| PM (TTM) | 28.06% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 1.03. 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 1.03. This is in the better half of the industry: NEE outperforms 67.57% of its industry peers.
The Debt to FCF ratio of NEE is 17.35, which is on the high side as it means it would take NEE, 17.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.35, NEE belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
NEE has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEE (1.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 17.35 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.51
WACC7.52%
2.3 Liquidity
NEE has a Current Ratio of 0.47. 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 Current ratio of NEE (0.47) is worse than 91.89% of its industry peers.
NEE has a Quick Ratio of 0.47. 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 (0.38) is worse than 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.86% 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 10.36% yearly.
Looking at the last year, NEE shows a very negative growth in Revenue. The Revenue has decreased by -11.96% in the last 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)7.86%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%1.92%
Revenue 1Y (TTM)-11.96%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%-21.7%
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 8.41% yearly.
NEE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y8.34%
EPS Next 2Y8.41%
EPS Next 3Y8.35%
EPS Next 5Y8.41%
Revenue Next Year7.79%
Revenue Next 2Y8.03%
Revenue Next 3Y7.3%
Revenue Next 5Y8.51%
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 stable.
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
NEE is valuated rather expensively with a Price/Earnings ratio of 20.28.
64.86% 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 (29.39), we can say NEE is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.72 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 67.57% of the companies in the same industry.
NEE is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEE indicates a rather expensive valuation: NEE more expensive than 81.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NEE is valued cheaper than 83.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.14 | ||
| EV/EBITDA | 17.35 |
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)2.43
PEG (5Y)1.96
EPS Next 2Y8.41%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, NEE has a reasonable but not impressive dividend return.
NEE's Dividend Yield is slightly below the industry average, which is at 3.59.
Compared to an average S&P500 Dividend Yield of 2.30, NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 60.98% 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.
DP60.98%
EPS Next 2Y8.41%
EPS Next 3Y8.35%
NEXTERA ENERGY INC
NYSE:NEE (2/12/2025, 2:45:02 PM)
69.555
-0.77 (-1.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.18%
Inst Owner Change-13.12%
Ins Owners0.06%
Ins Owner Change-0.1%
Market Cap143.03B
Analysts77.04
Price Target86.87 (24.89%)
Short Float %1.71%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP60.98%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.76%
Min EPS beat(2)-0.12%
Max EPS beat(2)3.63%
EPS beat(4)2
Avg EPS beat(4)4.13%
Min EPS beat(4)-2.94%
Max EPS beat(4)15.94%
EPS beat(8)6
Avg EPS beat(8)6.25%
EPS beat(12)10
Avg EPS beat(12)5.87%
EPS beat(16)14
Avg EPS beat(16)5.6%
Revenue beat(2)0
Avg Revenue beat(2)-16.07%
Min Revenue beat(2)-24.58%
Max Revenue beat(2)-7.56%
Revenue beat(4)0
Avg Revenue beat(4)-14.58%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-7.56%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)5
Avg Revenue beat(12)-3.16%
Revenue beat(16)5
Avg Revenue beat(16)-7.76%
PT rev (1m)-3.08%
PT rev (3m)-1.78%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)35.14%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)7.81%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 18.72 | ||
| P/S | 5.78 | ||
| P/FCF | 30.14 | ||
| P/OCF | 10.79 | ||
| P/B | 2.85 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)3.43
EY4.93%
EPS(NY)3.72
Fwd EY5.34%
FCF(TTM)2.31
FCFY3.32%
OCF(TTM)6.45
OCFY9.27%
SpS12.04
BVpS24.36
TBVpS22
PEG (NY)2.43
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 13.86% | ||
| ROCE | 4.33% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 4.01% | ||
| OM | 28.8% | ||
| PM (TTM) | 28.06% | ||
| GM | N/A | ||
| FCFM | 19.17% |
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)4.24%
ROICexgc(5y)3.77%
ROCE(3y)4.53%
ROCE(5y)4.03%
ROICexcg growth 3Y22.81%
ROICexcg growth 5Y-2.16%
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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 17.35 | ||
| Debt/EBITDA | 5.76 | ||
| Cap/Depr | 147.79% | ||
| Cap/Sales | 34.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.88% | ||
| Profit Quality | 68.34% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.03 |
F-Score5
WACC7.52%
ROIC/WACC0.51
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)7.86%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%1.92%
EPS Next Y8.34%
EPS Next 2Y8.41%
EPS Next 3Y8.35%
EPS Next 5Y8.41%
Revenue 1Y (TTM)-11.96%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%-21.7%
Revenue Next Year7.79%
Revenue Next 2Y8.03%
Revenue Next 3Y7.3%
Revenue Next 5Y8.51%
EBIT growth 1Y-27.5%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year76.31%
EBIT Next 3Y22.76%
EBIT Next 5Y22.91%
FCF growth 1Y170.74%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y17.33%
OCF growth 3Y20.64%
OCF growth 5Y10.21%