NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
83.93 USD
+1.93 (+2.35%)
84.1 USD
+0.17 (+0.2%)
Taking everything into account, NEE scores 4 out of 10 in our fundamental rating. NEE was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NEE had positive earnings in the past year.
In the past year NEE had a positive cash flow from operations.
NEE had positive earnings in each of the past 5 years.
NEE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.18%, NEE is doing good in the industry, outperforming 65.96% of the companies in the same industry.
The Return On Equity of NEE (12.00%) is better than 65.96% of its industry peers.
NEE has a worse Return On Invested Capital (3.58%) than 68.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROIC | 3.58% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.99%
ROIC(5y)3.59%
1.3 Margins
NEE's Profit Margin of 24.72% is amongst the best of the industry. NEE outperforms 97.87% of its industry peers.
NEE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.15%, NEE belongs to the best of the industry, outperforming 93.62% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.15% | ||
| PM (TTM) | 24.72% | ||
| GM | N/A |
OM growth 3Y19.72%
OM growth 5Y0.9%
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.
Compared to 1 year ago, NEE has more shares outstanding
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.
NEE has a debt to FCF ratio of 30.30. This is a negative value and a sign of low solvency as NEE would need 30.30 years to pay back of all of its debts.
NEE's Debt to FCF ratio of 30.30 is fine compared to the rest of the industry. NEE outperforms 74.47% of its industry peers.
NEE has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEE (1.65) is worse than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.51
WACC7.02%
2.3 Liquidity
NEE has a Current Ratio of 0.55. 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 0.55, NEE is doing worse than 87.23% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that NEE may have some problems paying its short term obligations.
NEE's Quick ratio of 0.45 is on the low side compared to the rest of the industry. NEE is outperformed by 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| 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 8.19%, which is quite good.
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 0.20% in the past year.
Measured over the past years, NEE shows a small growth in Revenue. The Revenue has been growing by 5.21% on average per year.
EPS 1Y (TTM)8.19%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.71%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
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 7.63% on average per year.
Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 8.05% on average per year.
EPS Next Y8.29%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
EPS Next 5Y7.63%
Revenue Next Year4.96%
Revenue Next 2Y7.23%
Revenue Next 3Y7.8%
Revenue Next 5Y8.05%
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
A Price/Earnings ratio of 22.68 indicates a rather expensive valuation of NEE.
Based on the Price/Earnings ratio, NEE is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (26.06), we can say NEE is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.85, NEE is valued on the expensive side.
78.72% of the companies in the same industry are cheaper than NEE, based on the Price/Forward Earnings ratio.
NEE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 20.85 |
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 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.24 | ||
| EV/EBITDA | 18.17 |
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)2.74
PEG (5Y)2.19
EPS Next 2Y8.33%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
NEE's Dividend Yield is comparable with the industry average which is at 3.23.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of NEE is nicely growing with an annual growth rate of 10.61%!
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)10.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
70.10% of the earnings are spent on dividend by NEE. This is not a sustainable payout ratio.
NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.1%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
83.93
+1.93 (+2.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change-0.66%
Ins Owners0.06%
Ins Owner Change-1.23%
Market Cap172.84B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target89.65 (6.82%)
Short Float %1.46%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)2.96%
Max EPS beat(2)10.04%
EPS beat(4)3
Avg EPS beat(4)3.51%
Min EPS beat(4)-0.12%
Max EPS beat(4)10.04%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)5.58%
EPS beat(16)14
Avg EPS beat(16)5.43%
Revenue beat(2)0
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-10.09%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-11.33%
Min Revenue beat(4)-24.58%
Max Revenue beat(4)-1.93%
Revenue beat(8)1
Avg Revenue beat(8)-7.44%
Revenue beat(12)4
Avg Revenue beat(12)-2.37%
Revenue beat(16)5
Avg Revenue beat(16)-4.92%
PT rev (1m)7.46%
PT rev (3m)7.21%
EPS NQ rev (1m)-12.24%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)5.29%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 20.85 | ||
| P/S | 6.57 | ||
| P/FCF | 56.24 | ||
| P/OCF | 14.44 | ||
| P/B | 3.19 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)3.7
EY4.41%
EPS(NY)4.03
Fwd EY4.8%
FCF(TTM)1.49
FCFY1.78%
OCF(TTM)5.81
OCFY6.92%
SpS12.77
BVpS26.31
TBVpS23.96
PEG (NY)2.74
PEG (5Y)2.19
Graham Number46.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 12% | ||
| ROCE | 4.08% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.63% | ||
| ROICexgc | 3.72% | ||
| OM | 28.15% | ||
| PM (TTM) | 24.72% | ||
| GM | N/A | ||
| FCFM | 11.69% |
ROA(3y)3.46%
ROA(5y)3.04%
ROE(3y)13.28%
ROE(5y)11.49%
ROIC(3y)3.99%
ROIC(5y)3.59%
ROICexc(3y)4.05%
ROICexc(5y)3.63%
ROICexgc(3y)4.27%
ROICexgc(5y)3.82%
ROCE(3y)4.53%
ROCE(5y)4.06%
ROICexgc growth 3Y23.72%
ROICexgc growth 5Y-2.61%
ROICexc growth 3Y23.46%
ROICexc growth 5Y-2.83%
OM growth 3Y19.72%
OM growth 5Y0.9%
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 | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 130.64% | ||
| Cap/Sales | 33.82% | ||
| Interest Coverage | 2.15 | ||
| Cash Conversion | 84.2% | ||
| Profit Quality | 47.26% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.12 |
F-Score4
WACC7.02%
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)8.19%
EPS 3Y10.53%
EPS 5Y10.36%
EPS Q2Q%9.71%
EPS Next Y8.29%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
EPS Next 5Y7.63%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
Revenue Next Year4.96%
Revenue Next 2Y7.23%
Revenue Next 3Y7.8%
Revenue Next 5Y8.05%
EBIT growth 1Y-12.76%
EBIT growth 3Y35.51%
EBIT growth 5Y6.15%
EBIT Next Year72.93%
EBIT Next 3Y30.63%
EBIT Next 5Y19.85%
FCF growth 1Y355.87%
FCF growth 3Y111.03%
FCF growth 5Y16.17%
OCF growth 1Y27.07%
OCF growth 3Y20.64%
OCF growth 5Y10.21%
NEXTERA ENERGY INC / NEE FAQ
What is the fundamental rating for NEE stock?
ChartMill assigns a fundamental rating of 4 / 10 to NEE.
What is the valuation status of NEXTERA ENERGY INC (NEE) stock?
ChartMill assigns a valuation rating of 2 / 10 to NEXTERA ENERGY INC (NEE). This can be considered as Overvalued.
Can you provide the profitability details for NEXTERA ENERGY INC?
NEXTERA ENERGY INC (NEE) has a profitability rating of 6 / 10.
What is the financial health of NEXTERA ENERGY INC (NEE) stock?
The financial health rating of NEXTERA ENERGY INC (NEE) is 1 / 10.
Can you provide the expected EPS growth for NEE stock?
The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 8.29% in the next year.