NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
84.41 USD
+1.16 (+1.39%)
84.4 USD
-0.01 (-0.01%)
Overall NEE gets a fundamental rating of 3 out of 10. We evaluated NEE against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of NEE while its profitability can be described as average. 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.
In the past year NEE had a positive cash flow from operations.
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 2.98% is fine compared to the rest of the industry. NEE outperforms 65.96% of its industry peers.
The Return On Equity of NEE (11.65%) is better than 61.70% of its industry peers.
NEE has a Return On Invested Capital (3.82%) 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 4.90%.
| 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's Profit Margin of 22.84% 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 29.52%, NEE belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
In the last couple of years the Operating Margin of NEE has grown nicely.
| 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
NEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEE has more shares outstanding
The debt/assets ratio for NEE is higher compared to a year ago.
2.2 Solvency
NEE has an Altman-Z score of 1.13. 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 1.13, NEE is in the better half of the industry, outperforming 65.96% 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 74.47% 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.
The Debt to Equity ratio of NEE (1.72) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.55
WACC6.97%
2.3 Liquidity
NEE has a Current 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.
NEE has a Current ratio of 0.54. This is amonst the worse of the industry: NEE underperforms 87.23% of its industry peers.
A Quick Ratio of 0.45 indicates that NEE may have some problems paying its short term obligations.
NEE has a Quick ratio of 0.45. This is amonst the worse of the industry: NEE underperforms 80.85% 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.
NEE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.36% yearly.
The Revenue has been growing slightly by 0.19% in the past 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
The Earnings Per Share is expected to grow by 7.53% on average over the next years.
The Revenue is expected to grow by 7.93% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
EPS Next 5Y7.53%
Revenue Next Year5%
Revenue Next 2Y7.64%
Revenue Next 3Y8.22%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.45 indicates a rather expensive valuation of NEE.
Compared to the rest of the industry, the Price/Earnings ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 74.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, NEE is valued at the same level.
A Price/Forward Earnings ratio of 21.03 indicates a rather expensive valuation of NEE.
Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than 78.72% of the companies in the same industry.
NEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 21.03 |
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.
NEE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEE is cheaper than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.54 | ||
| EV/EBITDA | 18.63 |
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)2.88
PEG (5Y)2.26
EPS Next 2Y8.17%
EPS Next 3Y8.43%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, NEE is paying slightly less dividend.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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.
The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.25%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
84.41
+1.16 (+1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change0.3%
Ins Owners0.06%
Ins Owner Change-1.79%
Market Cap173.82B
Revenue(TTM)25.90B
Net Income(TTM)5.92B
Analysts75.83
Price Target83.42 (-1.17%)
Short Float %1.58%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)0.27%
PT rev (3m)1.38%
EPS NQ rev (1m)5.92%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 21.03 | ||
| P/S | 6.71 | ||
| P/FCF | 46.54 | ||
| P/OCF | 14.24 | ||
| P/B | 3.42 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)3.6
EY4.26%
EPS(NY)4.01
Fwd EY4.75%
FCF(TTM)1.81
FCFY2.15%
OCF(TTM)5.93
OCFY7.02%
SpS12.58
BVpS24.67
TBVpS22.3
PEG (NY)2.88
PEG (5Y)2.26
Graham Number44.7
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%
ROICexgc growth 3Y23.72%
ROICexgc 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 | 1.13 |
F-Score4
WACC6.97%
ROIC/WACC0.55
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 Y8.13%
EPS Next 2Y8.17%
EPS Next 3Y8.43%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
Revenue Next Year5%
Revenue Next 2Y7.64%
Revenue Next 3Y8.22%
Revenue Next 5Y7.93%
EBIT growth 1Y-0.6%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year72.93%
EBIT Next 3Y30.63%
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%
NEXTERA ENERGY INC / NEE FAQ
What is the fundamental rating for NEE stock?
ChartMill assigns a fundamental rating of 3 / 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 8.13% in the next year.