NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
NYSE:NEE - New York Stock Exchange, Inc. - US65339F1012 - Common Stock - Currency: USD
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 not valued too expensively and it also shows 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 3.65%, NEE is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
NEE has a Return On Equity of 13.86%. This is in the better half of the industry: NEE outperforms 75.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.86%, NEE is in line with its industry, outperforming 59.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
NEE's Profit Margin of 28.06% is amongst the best of the industry. NEE outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NEE has grown nicely.
With an excellent Operating Margin value of 28.80%, NEE belongs to the best of the industry, outperforming 97.30% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEE is destroying value.
NEE has more shares outstanding than it did 1 year ago.
NEE has more shares outstanding than it did 5 years ago.
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 better Altman-Z score (1.03) than 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.
A Debt/Equity ratio of 1.48 is on the high side and indicates that NEE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.48, NEE is in line with its industry, outperforming 48.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 17.35 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.51
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.47 indicates that NEE may have some problems paying its short term obligations.
With a Current ratio value of 0.47, NEE is not doing good in the industry: 91.89% of the companies in the same industry are doing better.
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.
NEE has a Quick ratio of 0.38. This is amonst the worse of the industry: NEE underperforms 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
NEE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.86%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -11.96%.
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
Based on estimates for the next years, NEE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
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.
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
The Price/Earnings ratio is 20.20, which indicates a rather expensive current valuation of NEE.
Based on the Price/Earnings ratio, NEE is valued a bit more expensive than the industry average as 64.86% of the companies are valued more cheaply.
NEE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.19.
A Price/Forward Earnings ratio of 18.64 indicates a rather expensive valuation of NEE.
Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than the industry average as 67.57% of the companies are valued more cheaply.
NEE is valuated cheaply when we compare the Price/Forward Earnings ratio to 96.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
NEE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NEE is more expensive than 81.08% of the companies in the same industry.
83.78% 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 | 30.02 | ||
| EV/EBITDA | 17.35 |
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)2.42
PEG (5Y)1.95
EPS Next 2Y8.41%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.97%.
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
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
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, 8:04:00 PM)
After market: 69.3905 +0.11 (+0.16%)69.28
-1.05 (-1.49%)
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 Cap142.47B
Analysts77.04
Price Target86.87 (25.39%)
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 | 20.2 | ||
| Fwd PE | 18.64 | ||
| P/S | 5.76 | ||
| P/FCF | 30.02 | ||
| P/OCF | 10.74 | ||
| P/B | 2.84 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)3.43
EY4.95%
EPS(NY)3.72
Fwd EY5.36%
FCF(TTM)2.31
FCFY3.33%
OCF(TTM)6.45
OCFY9.31%
SpS12.04
BVpS24.36
TBVpS22
PEG (NY)2.42
PEG (5Y)1.95
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
WACC7.53%
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%