NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
85.54 USD
+0.71 (+0.84%)
85.54 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 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.
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 has a Return On Assets of 3.18%. This is in the better half of the industry: NEE outperforms 65.96% of its industry peers.
NEE's Return On Equity of 12.00% is fine compared to the rest of the industry. NEE outperforms 65.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.58%, NEE is doing worse than 68.09% 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 4.92%.
| 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
The Profit Margin of NEE (24.72%) is better than 97.87% of its industry peers.
In the last couple of years the Profit Margin of NEE has grown nicely.
NEE's Operating Margin of 28.15% is amongst the best of the industry. NEE outperforms 95.74% of its industry peers.
NEE's Operating Margin has been stable in the last couple of years.
| 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
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
The debt/assets ratio for NEE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that NEE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NEE (1.13) is better than 68.09% of its industry peers.
The Debt to FCF ratio of NEE is 30.30, which is on the high side as it means it would take NEE, 30.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NEE (30.30) is better than 78.72% 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 has a worse Debt to Equity ratio (1.65) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.51
WACC6.97%
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 89.36% 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 has a worse Quick ratio (0.45) than 85.11% 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
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
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.
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 23.12 indicates a rather expensive valuation of NEE.
NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 78.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, NEE is valued at the same level.
A Price/Forward Earnings ratio of 21.25 indicates a rather expensive valuation of NEE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 78.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. NEE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
NEE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NEE is more expensive than 82.98% of the companies in the same industry.
76.60% of the companies in the same industry are more expensive than NEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.32 | ||
| EV/EBITDA | 18.4 |
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)2.79
PEG (5Y)2.23
EPS Next 2Y8.33%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.27%, NEE is a good candidate for dividend investing.
NEE's Dividend Yield is rather good when compared to the industry average which is at 3.39. NEE pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NEE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
5.2 History
The dividend of NEE is nicely growing with an annual growth rate of 10.61%!
NEE has paid a dividend for at least 10 years, which is 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%
85.54
+0.71 (+0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change2%
Ins Owners0.06%
Ins Owner Change-0.73%
Market Cap176.15B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (7.42%)
Short Float %1.31%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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)10.15%
PT rev (3m)10.77%
EPS NQ rev (1m)-13.2%
EPS NQ rev (3m)-12.48%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)2.79%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 21.25 | ||
| P/S | 6.7 | ||
| P/FCF | 57.32 | ||
| P/OCF | 14.72 | ||
| P/B | 3.25 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 18.4 |
EPS(TTM)3.7
EY4.33%
EPS(NY)4.03
Fwd EY4.71%
FCF(TTM)1.49
FCFY1.74%
OCF(TTM)5.81
OCFY6.79%
SpS12.77
BVpS26.31
TBVpS23.96
PEG (NY)2.79
PEG (5Y)2.23
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 | 1.13 |
F-Score4
WACC6.97%
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.