NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NEE • US65339F1012
87.9 USD
-0.28 (-0.32%)
At close: Jan 30, 2026
87.75 USD
-0.15 (-0.17%)
After Hours: 1/30/2026, 8:08:57 PM
Taking everything into account, NEE scores 4 out of 10 in our fundamental rating. 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
- NEE had positive earnings in the past year.
- 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.
- With a decent Return On Equity value of 12.51%, NEE is doing good in the industry, outperforming 65.22% of the companies in the same industry.
- NEE has a Return On Invested Capital of 3.29%. This is in the lower half of the industry: NEE underperforms 69.57% of its industry peers.
- 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.
- NEE's Profit Margin has improved in the last couple of years.
- NEE has a better Operating Margin (29.26%) than 97.83% of its industry peers.
- 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
- Compared to 1 year ago, NEE has a worse debt to assets ratio.
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.
- NEE has a Altman-Z score of 1.13. This is in the better half of the industry: NEE outperforms 73.91% of its industry peers.
- 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.
- The Debt to FCF ratio of NEE (29.78) is better than 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.
- The Debt to Equity ratio of NEE (1.69) is worse than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 29.78 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.45
WACC7.27%
2.3 Liquidity
- NEE has a Current 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.
- NEE has a worse Current ratio (0.60) than 86.96% of its industry peers.
- A Quick Ratio of 0.49 indicates that NEE may have some problems paying its short term obligations.
- NEE has a worse Quick ratio (0.49) than 80.43% of its industry peers.
| 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.
- Measured over the past years, NEE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.92% on average per year.
- 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
- The Earnings Per Share is expected to grow by 7.97% on average over the next years.
- Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 10.01% on average per year.
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
- 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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.69 indicates a rather expensive valuation of NEE.
- Compared to the rest of the industry, the Price/Earnings ratio of NEE indicates a rather expensive valuation: NEE more expensive than 80.43% of the companies listed in the same industry.
- NEE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 21.79, NEE is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NEE indicates a rather expensive valuation: NEE more expensive than 80.43% of the companies listed in the same industry.
- NEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEE is valued more expensive than 80.43% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NEE is valued a bit cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.01 | ||
| EV/EBITDA | 18.31 |
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.
- NEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)2.39
EPS Next 2Y8.91%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
- NEE has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.90, NEE is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
- On average, the dividend of NEE grows each year by 10.05%, 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)10.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 68.48% 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.
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.