NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - NYSE:NEE - US65339F1012 - Common Stock
83.99 USD
-0.78 (-0.92%)
83.85 USD
-0.14 (-0.17%)
Overall NEE gets a fundamental rating of 3 out of 10. We evaluated NEE against 47 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. 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.
In the past year NEE had a positive cash flow from operations.
Each year in the past 5 years NEE has been profitable.
Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.98%, NEE is doing good in the industry, outperforming 65.96% of the companies in the same industry.
NEE has a Return On Equity of 11.65%. This is in the better half of the industry: NEE outperforms 61.70% of its industry peers.
The Return On Invested Capital of NEE (3.82%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEE is in line with the industry average of 4.90%.
| 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
The Profit Margin of NEE (22.84%) is better than 97.87% of its industry peers.
NEE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.52%, NEE belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEE is destroying value.
Compared to 1 year ago, NEE has more shares outstanding
Compared to 5 years ago, NEE has more shares outstanding
Compared to 1 year ago, NEE has a worse debt to assets ratio.
2.2 Solvency
NEE has an Altman-Z score of 1.14. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
NEE has a Altman-Z score of 1.14. This is in the better half of the industry: NEE outperforms 65.96% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 24.95, NEE is in the better half of the industry, outperforming 74.47% 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.
NEE has a Debt to Equity ratio of 1.72. This is in the lower half of the industry: NEE underperforms 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 24.95 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.55
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.54 indicates that NEE may have some problems paying its short term obligations.
NEE has a worse Current ratio (0.54) than 87.23% 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.
The Quick ratio of NEE (0.45) is worse than 80.85% 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.
NEE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.36% yearly.
Looking at the last year, NEE shows a small growth in Revenue. The Revenue has grown by 0.19% in the last year.
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.
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
The Price/Earnings ratio is 23.33, which indicates a rather expensive current valuation of NEE.
Compared to the rest of the industry, the Price/Earnings ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 74.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.77. NEE is around the same levels.
NEE is valuated rather expensively with a Price/Forward Earnings ratio of 20.99.
NEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 76.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, NEE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEE is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
NEE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEE is cheaper than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.31 | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)2.25
EPS Next 2Y8%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.66%.
NEE's Dividend Yield is slightly below the industry average, which is at 3.24.
NEE's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 75.25% 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.
DP75.25%
EPS Next 2Y8%
EPS Next 3Y8.36%
83.99
-0.78 (-0.92%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change0.17%
Ins Owners0.06%
Ins Owner Change-1.79%
Market Cap172.96B
Analysts75.83
Price Target83.42 (-0.68%)
Short Float %1.54%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)0.27%
PT rev (3m)1.38%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.99 | ||
| P/S | 6.68 | ||
| P/FCF | 46.31 | ||
| P/OCF | 14.17 | ||
| P/B | 3.4 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 18.69 |
EPS(TTM)3.6
EY4.29%
EPS(NY)4
Fwd EY4.76%
FCF(TTM)1.81
FCFY2.16%
OCF(TTM)5.93
OCFY7.06%
SpS12.58
BVpS24.67
TBVpS22.3
PEG (NY)2.97
PEG (5Y)2.25
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 | 1.14 |
F-Score4
WACC6.95%
ROIC/WACC0.55
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 Year72.93%
EBIT Next 3Y30.63%
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%