NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
71.095 USD
+0.3 (+0.43%)
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 48 industry peers in the Electric Utilities industry. NEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, NEE is valued expensive at the moment.
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.
In the past 5 years NEE has always been profitable.
In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NEE (2.98%) is better than 60.42% of its industry peers.
NEE's Return On Equity of 11.65% is fine compared to the rest of the industry. NEE outperforms 68.75% of its industry peers.
The Return On Invested Capital of NEE (3.82%) is worse than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEE is in line with the industry average of 5.43%.
| 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
With an excellent Profit Margin value of 22.84%, NEE belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
NEE's Profit Margin has improved in the last couple of years.
NEE has a Operating Margin of 29.52%. This is amongst the best in the industry. NEE outperforms 93.75% of its industry peers.
NEE's Operating Margin has improved in the last couple of years.
| 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.
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
NEE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that NEE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, NEE is in the better half of the industry, outperforming 60.42% 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.
With a decent Debt to FCF ratio value of 24.95, NEE is doing good in the industry, outperforming 72.92% of the companies in the same industry.
A Debt/Equity ratio of 1.72 is on the high side and indicates that NEE has dependencies on debt financing.
The Debt to Equity ratio of NEE (1.72) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.56
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.54 indicates that NEE may have some problems paying its short term obligations.
NEE's Current ratio of 0.54 is on the low side compared to the rest of the industry. NEE is outperformed by 87.50% of its industry peers.
NEE has a Quick 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 worse Quick ratio (0.45) than 81.25% 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.
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 0.19%.
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)8.11%
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.
NEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue Next Year4.61%
Revenue Next 2Y7.2%
Revenue Next 3Y7.82%
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
Based on the Price/Earnings ratio of 19.75, the valuation of NEE can be described as rather expensive.
Based on the Price/Earnings ratio, NEE is valued a bit more expensive than 64.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, NEE is valued a bit cheaper.
NEE is valuated rather expensively with a Price/Forward Earnings ratio of 17.77.
The rest of the industry has a similar Price/Forward Earnings ratio as NEE.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, NEE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
79.17% 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 the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.2 | ||
| EV/EBITDA | 16.63 |
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.
The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)1.91
EPS Next 2Y8%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.96%, NEE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, NEE pays a better dividend. On top of this NEE pays more dividend than 100.00% of the companies listed in the same industry.
NEE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.96% |
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.
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
75.25% 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.
DP75.25%
EPS Next 2Y8%
EPS Next 3Y8.36%
NYSE:NEE (9/19/2025, 3:15:08 PM)
71.095
+0.3 (+0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change-0.8%
Ins Owners0.06%
Ins Owner Change-1.36%
Market Cap146.41B
Analysts75.2
Price Target83.2 (17.03%)
Short Float %2.02%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.96% |
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)-0.5%
PT rev (3m)0.49%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.77 | ||
| P/S | 5.65 | ||
| P/FCF | 39.2 | ||
| P/OCF | 11.99 | ||
| P/B | 2.88 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 16.63 |
EPS(TTM)3.6
EY5.06%
EPS(NY)4
Fwd EY5.63%
FCF(TTM)1.81
FCFY2.55%
OCF(TTM)5.93
OCFY8.34%
SpS12.58
BVpS24.67
TBVpS22.3
PEG (NY)2.52
PEG (5Y)1.91
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%
ROICexcg growth 3Y23.72%
ROICexcg 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 | 1.02 |
F-Score4
WACC6.78%
ROIC/WACC0.56
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 Y7.85%
EPS Next 2Y8%
EPS Next 3Y8.36%
EPS Next 5Y7.53%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%10.4%
Revenue Next Year4.61%
Revenue Next 2Y7.2%
Revenue Next 3Y7.82%
Revenue Next 5Y7.93%
EBIT growth 1Y-0.6%
EBIT growth 3Y35.51%
EBIT growth 5Y7.12%
EBIT Next Year71.22%
EBIT Next 3Y30.26%
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%