NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NEE • US65339F1012
88.18 USD
+0.61 (+0.7%)
At close: Jan 29, 2026
88.3 USD
+0.12 (+0.14%)
Pre-Market: 1/30/2026, 8:10:53 AM
NEE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of NEE while its profitability can be described as average. NEE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NEE was profitable.
- NEE had a positive operating cash flow in the past year.
- Each year in the past 5 years NEE has been profitable.
- In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.21%, NEE is doing good in the industry, outperforming 67.39% of the companies in the same industry.
- NEE has a Return On Equity of 12.51%. This is in the better half of the industry: NEE outperforms 65.22% of its industry peers.
- With a Return On Invested Capital value of 3.29%, NEE is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 12.51% | ||
| ROIC | 3.29% |
ROA(3y)3.66%
ROA(5y)3.23%
ROE(3y)13.93%
ROE(5y)12.39%
ROIC(3y)3.9%
ROIC(5y)3.12%
1.3 Margins
- With an excellent Profit Margin value of 24.93%, 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 29.26%, NEE belongs to the top of the industry, outperforming 97.83% 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 | 29.26% | ||
| PM (TTM) | 24.93% | ||
| GM | N/A |
OM growth 3Y19.88%
OM growth 5Y1.26%
PM growth 3Y8.01%
PM growth 5Y8.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEE 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 73.91% of the companies in the same industry.
- The Debt to FCF ratio of NEE is 29.78, which is on the high side as it means it would take NEE, 29.78 years of fcf income to pay off all of its debts.
- NEE has a Debt to FCF ratio of 29.78. This is amongst the best in the industry. NEE outperforms 82.61% of its industry peers.
- NEE has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.69, NEE is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 29.78 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.45
WACC7.28%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that NEE may have some problems paying its short term obligations.
- NEE's Current ratio of 0.60 is on the low side compared to the rest of the industry. NEE is outperformed by 86.96% of its industry peers.
- NEE has a Quick Ratio of 0.60. This is a bad value and indicates that NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.49, NEE is doing worse than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- NEE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.16%, 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 9.92% yearly.
- The Revenue has grown by 10.75% in the past year. This is quite good.
- NEE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.78% yearly.
EPS 1Y (TTM)8.16%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%1.89%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%20.71%
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 7.97% on average per year.
- NEE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.01% yearly.
EPS Next Y8.73%
EPS Next 2Y8.91%
EPS Next 3Y7.84%
EPS Next 5Y7.97%
Revenue Next Year10.15%
Revenue Next 2Y8.96%
Revenue Next 3Y8.93%
Revenue Next 5Y10.01%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NEE is valuated rather expensively with a Price/Earnings ratio of 23.77.
- Based on the Price/Earnings ratio, NEE is valued more expensive than 80.43% of the companies in the same industry.
- NEE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- NEE is valuated rather expensively with a Price/Forward Earnings ratio of 21.86.
- 80.43% of the companies in the same industry are cheaper than NEE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (25.72), we can say NEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
- 80.43% 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 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.19 | ||
| EV/EBITDA | 18.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)2.4
EPS Next 2Y8.91%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.57%, NEE has a reasonable but not impressive dividend return.
- NEE's Dividend Yield is slightly below the industry average, which is at 2.90.
- NEE's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
- The dividend of NEE is nicely growing with an annual growth rate of 10.05%!
- 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)10.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- NEE pays out 68.48% of its income as dividend. This is not a sustainable payout ratio.
- NEE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.48%
EPS Next 2Y8.91%
EPS Next 3Y7.84%
NEXTERA ENERGY INC / NEE FAQ
What is the fundamental rating for NEE stock?
ChartMill assigns a fundamental rating of 4 / 10 to NEE.
Can you provide the valuation status for NEXTERA ENERGY INC?
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.
Can you provide the financial health for NEE stock?
The financial health rating of NEXTERA ENERGY INC (NEE) is 2 / 10.
What is the expected EPS growth for NEXTERA ENERGY INC (NEE) stock?
The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 8.73% in the next year.