NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
83.48 USD
-0.82 (-0.97%)
83.61 USD
+0.13 (+0.16%)
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 46 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.
In the past year NEE had a positive cash flow from operations.
NEE had positive earnings in each of the past 5 years.
Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.18%, NEE is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.00%, NEE is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.58%, NEE is doing worse than 69.57% of the companies in the same industry.
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 5.00%.
| 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
With an excellent Profit Margin value of 24.72%, NEE belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
In the last couple of years the Profit Margin of NEE has grown nicely.
Looking at the Operating Margin, with a value of 28.15%, NEE belongs to the top of the industry, outperforming 95.65% 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
The number of shares outstanding for NEE has been increased compared to 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 has a better Altman-Z score (1.12) than 67.39% 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 has a Debt to FCF ratio of 30.30. This is in the better half of the industry: NEE outperforms 78.26% 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.
NEE's Debt to Equity ratio of 1.65 is on the low side compared to the rest of the industry. NEE is outperformed by 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.51
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, NEE is doing worse than 89.13% 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 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.19% over the past year.
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.
NEE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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
The Earnings Per Share is expected to grow by 7.63% on average over the next years.
NEE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.05% yearly.
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
With a Price/Earnings ratio of 22.56, NEE is valued on the expensive side.
Based on the Price/Earnings ratio, NEE is valued a bit more expensive than 78.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, NEE is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.74, the valuation of NEE can be described as rather expensive.
NEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 78.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. NEE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEE is valued expensively inside the industry as 82.61% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, NEE is valued a bit cheaper than 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.94 | ||
| EV/EBITDA | 18.22 |
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)2.72
PEG (5Y)2.18
EPS Next 2Y8.33%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
NEE's Dividend Yield is slightly below the industry average, which is at 3.77.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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.
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 70.10% 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.
DP70.1%
EPS Next 2Y8.33%
EPS Next 3Y8.51%
83.48
-0.82 (-0.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change2.03%
Ins Owners0.06%
Ins Owner Change-0.87%
Market Cap171.91B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target89.65 (7.39%)
Short Float %1.31%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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)-14.29%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)3.27%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.74 | ||
| P/S | 6.54 | ||
| P/FCF | 55.94 | ||
| P/OCF | 14.37 | ||
| P/B | 3.17 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 18.22 |
EPS(TTM)3.7
EY4.43%
EPS(NY)4.03
Fwd EY4.82%
FCF(TTM)1.49
FCFY1.79%
OCF(TTM)5.81
OCFY6.96%
SpS12.77
BVpS26.31
TBVpS23.96
PEG (NY)2.72
PEG (5Y)2.18
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
WACC7.01%
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.