NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
81.98 USD
+0.34 (+0.42%)
81.8 USD
-0.18 (-0.22%)
We assign a fundamental rating of 4 out of 10 to NEE. NEE was compared to 46 industry peers in the Electric Utilities industry. While NEE is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- NEE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NEE has a better Return On Assets (3.18%) than 67.39% of its industry peers.
- NEE's Return On Equity of 12.00% is fine compared to the rest of the industry. NEE outperforms 63.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.58%, NEE is doing worse than 67.39% 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 4.58%.
| 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
- NEE has a better Profit Margin (24.72%) than 97.83% of its industry peers.
- NEE's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 28.15%, NEE belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- 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
- 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.
- NEE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NEE has a worse debt to assets ratio.
2.2 Solvency
- NEE has an Altman-Z score of 1.11. 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 (1.11) than 71.74% 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.
- NEE's Debt to FCF ratio of 30.30 is amongst the best of the industry. NEE outperforms 80.43% 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 Debt to Equity ratio of 1.65. This is in the lower half of the industry: NEE underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.51
WACC7.05%
2.3 Liquidity
- NEE has a Current Ratio of 0.55. 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 0.55. This is amonst the worse of the industry: NEE underperforms 86.96% 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 worse Quick ratio (0.45) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| 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 8.19%, which is quite good.
- The Earnings Per Share has been growing by 10.36% on average over the past years. This is quite good.
- Looking at the last year, NEE shows a small growth in Revenue. The Revenue has grown by 0.20% in the last year.
- The Revenue has been growing slightly by 5.21% on average over the past years.
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
- The Earnings Per Share is expected to grow by 8.28% on average over the next years. This is quite good.
- Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y8.42%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
EPS Next 5Y8.28%
Revenue Next Year5.87%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y8.54%
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 22.16, the valuation of NEE can be described as rather expensive.
- NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 76.09% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.33. NEE is around the same levels.
- Based on the Price/Forward Earnings ratio of 20.28, the valuation of NEE can be described as rather expensive.
- 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 78.26% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. NEE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEE indicates a rather expensive valuation: NEE more expensive than 80.43% of the companies listed in the same industry.
- 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 | 55.56 | ||
| EV/EBITDA | 17.97 |
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)2.63
PEG (5Y)2.14
EPS Next 2Y8.57%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.11%, NEE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.46, NEE pays a better dividend. On top of this NEE pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, NEE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
5.2 History
- On average, the dividend of NEE grows each year by 10.61%, which is quite nice.
- 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
- NEE pays out 70.10% 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.
DP70.1%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
81.98
+0.34 (+0.42%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-23 2026-01-23/amc
Inst Owners83.16%
Inst Owner Change-0.22%
Ins Owners0.05%
Ins Owner Change-1.01%
Market Cap170.73B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (12.09%)
Short Float %1.73%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
Yearly Dividend2.06
Dividend Growth(5Y)10.61%
DP70.1%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.05%
PT rev (3m)10.15%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)4.85%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.28 | ||
| P/S | 6.49 | ||
| P/FCF | 55.56 | ||
| P/OCF | 14.27 | ||
| P/B | 3.15 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 17.97 |
EPS(TTM)3.7
EY4.51%
EPS(NY)4.04
Fwd EY4.93%
FCF(TTM)1.48
FCFY1.8%
OCF(TTM)5.75
OCFY7.01%
SpS12.63
BVpS26.02
TBVpS23.69
PEG (NY)2.63
PEG (5Y)2.14
Graham Number46.54
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 | 1.11 |
F-Score4
WACC7.05%
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 Y8.42%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
EPS Next 5Y8.28%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y13.19%
Revenue growth 5Y5.21%
Sales Q2Q%5.27%
Revenue Next Year5.87%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y8.54%
EBIT growth 1Y-12.76%
EBIT growth 3Y35.51%
EBIT growth 5Y6.15%
EBIT Next Year70.26%
EBIT Next 3Y29.32%
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.
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 8.42% in the next year.