NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NEE • US65339F1012
89.97 USD
+1.15 (+1.29%)
At close: Feb 4, 2026
90.6 USD
+0.63 (+0.7%)
After Hours: 2/4/2026, 5:05:00 PM
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
- NEE had positive earnings in the past year.
- In the past year NEE had a positive cash flow from operations.
- In the past 5 years NEE has always been profitable.
- Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of NEE (3.21%) is better than 67.39% of its industry peers.
- 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.
- NEE had an Average Return On Invested Capital over the past 3 years of 3.90%. This 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
- NEE has a better Profit Margin (24.93%) than 97.83% of its industry peers.
- 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.
- Compared to 1 year ago, NEE has more shares outstanding
- The number of shares outstanding for NEE has been increased compared to 5 years ago.
- Compared to 1 year ago, NEE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.13, we must say that NEE is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.13, NEE is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- NEE has a debt to FCF ratio of 29.78. This is a negative value and a sign of low solvency as NEE would need 29.78 years to pay back of 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.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that NEE has dependencies on debt 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
WACC7.32%
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 Current ratio of 0.60. This is amonst the worse of the industry: NEE underperforms 86.96% of its industry peers.
- A Quick Ratio of 0.49 indicates that NEE may have some problems paying 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.
- Looking at the last year, NEE shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
- The Revenue has been growing by 8.78% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, NEE will show a quite strong growth in Revenue. The Revenue will grow by 10.05% on average per year.
EPS Next Y9.34%
EPS Next 2Y9.16%
EPS Next 3Y8.7%
EPS Next 5Y7.97%
Revenue Next Year9.93%
Revenue Next 2Y9.12%
Revenue Next 3Y9.5%
Revenue Next 5Y10.05%
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
- With a Price/Earnings ratio of 24.25, NEE is valued on the expensive side.
- NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 78.26% 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 28.18, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 22.18, the valuation of NEE can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than the industry average as 78.26% of the companies are valued more cheaply.
- NEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
- 82.61% 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 | 58.35 | ||
| EV/EBITDA | 18.4 |
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)2.6
PEG (5Y)2.45
EPS Next 2Y9.16%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.55%, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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.
- The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.48%
EPS Next 2Y9.16%
EPS Next 3Y8.7%
89.97
+1.15 (+1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners83.16%
Inst Owner Change-3.91%
Ins Owners0.05%
Ins Owner Change-1.04%
Market Cap187.37B
Revenue(TTM)27.41B
Net Income(TTM)6.83B
Analysts77.33
Price Target94.15 (4.65%)
Short Float %1.84%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend2.26
Dividend Growth(5Y)10.05%
DP68.48%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.86%
Min EPS beat(2)1.67%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)3.95%
Min EPS beat(4)1.14%
Max EPS beat(4)10.04%
EPS beat(8)6
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)5.49%
EPS beat(16)14
Avg EPS beat(16)5.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-5.97%
Min Revenue beat(4)-10.09%
Max Revenue beat(4)-1.93%
Revenue beat(8)0
Avg Revenue beat(8)-10.27%
Revenue beat(12)4
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-3.86%
PT rev (1m)0.68%
PT rev (3m)3.2%
EPS NQ rev (1m)-3.78%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 22.18 | ||
| P/S | 6.84 | ||
| P/FCF | 58.35 | ||
| P/OCF | 15.01 | ||
| P/B | 3.43 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 18.4 |
EPS(TTM)3.71
EY4.12%
EPS(NY)4.06
Fwd EY4.51%
FCF(TTM)1.54
FCFY1.71%
OCF(TTM)5.99
OCFY6.66%
SpS13.16
BVpS26.22
TBVpS23.89
PEG (NY)2.6
PEG (5Y)2.45
Graham Number46.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 12.51% | ||
| ROCE | 4.22% | ||
| ROIC | 3.29% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 3.43% | ||
| OM | 29.26% | ||
| PM (TTM) | 24.93% | ||
| GM | N/A | ||
| FCFM | 11.71% |
ROA(3y)3.66%
ROA(5y)3.23%
ROE(3y)13.93%
ROE(5y)12.39%
ROIC(3y)3.9%
ROIC(5y)3.12%
ROICexc(3y)3.96%
ROICexc(5y)3.16%
ROICexgc(3y)4.15%
ROICexgc(5y)3.31%
ROCE(3y)5.04%
ROCE(5y)4.03%
ROICexgc growth 3Y15.81%
ROICexgc growth 5Y-1.06%
ROICexc growth 3Y16.69%
ROICexc growth 5Y-0.68%
OM growth 3Y19.88%
OM growth 5Y1.26%
PM growth 3Y8.01%
PM growth 5Y8.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 29.78 | ||
| Debt/EBITDA | 6.16 | ||
| Cap/Depr | 133.61% | ||
| Cap/Sales | 33.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.45% | ||
| Profit Quality | 46.99% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.13 |
F-Score4
WACC7.32%
ROIC/WACC0.45
Cap/Depr(3y)145.54%
Cap/Depr(5y)161.45%
Cap/Sales(3y)34.06%
Cap/Sales(5y)37.99%
Profit Quality(3y)46.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.16%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%1.89%
EPS Next Y9.34%
EPS Next 2Y9.16%
EPS Next 3Y8.7%
EPS Next 5Y7.97%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%20.71%
Revenue Next Year9.93%
Revenue Next 2Y9.12%
Revenue Next 3Y9.5%
Revenue Next 5Y10.05%
EBIT growth 1Y12.51%
EBIT growth 3Y31.1%
EBIT growth 5Y10.15%
EBIT Next Year88.77%
EBIT Next 3Y30.36%
EBIT Next 5Y22.54%
FCF growth 1Y-32.34%
FCF growth 3YN/A
FCF growth 5Y21.04%
OCF growth 1Y-5.84%
OCF growth 3Y14.75%
OCF growth 5Y9.36%
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 9.34% in the next year.