NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
81.12 USD
+1.23 (+1.54%)
80.42 USD
-0.7 (-0.86%)
Overall NEE gets a fundamental rating of 4 out of 10. We evaluated NEE against 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. 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.
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
Looking at the Return On Assets, with a value of 3.18%, NEE is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
With a decent Return On Equity value of 12.00%, NEE is doing good in the industry, outperforming 63.04% of the companies in the same industry.
NEE has a worse Return On Invested Capital (3.58%) than 67.39% 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 4.58%.
| 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
Looking at the Profit Margin, with a value of 24.72%, NEE belongs to the top 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.
Looking at the Operating Margin, with a value of 28.15%, NEE belongs to the top 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.
NEE has a worse debt/assets ratio than last year.
2.2 Solvency
NEE has an Altman-Z score of 1.09. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.09, NEE is doing good in the industry, outperforming 71.74% of the companies in the same industry.
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.
The Debt to FCF ratio of NEE (30.30) is better than 80.43% of its industry peers.
A Debt/Equity ratio of 1.65 is on the high side and indicates that NEE has dependencies on debt financing.
The Debt to Equity ratio of NEE (1.65) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.51
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
NEE has a worse Current ratio (0.55) than 86.96% of its industry peers.
A Quick Ratio of 0.45 indicates that NEE may have some problems paying its short term obligations.
The Quick ratio of NEE (0.45) is worse than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.19% over the past year.
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.
NEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.21% yearly.
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
Based on estimates for the next years, NEE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.28% 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 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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
NEE is valuated rather expensively with a Price/Earnings ratio of 21.92.
76.09% of the companies in the same industry are cheaper than NEE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (27.25), we can say NEE is valued inline with the index average.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of NEE.
Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than 76.09% of the companies in the same industry.
NEE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 20.06 |
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 | 54.98 | ||
| EV/EBITDA | 17.71 |
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)2.6
PEG (5Y)2.12
EPS Next 2Y8.57%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 7.11%, which is a nice return.
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 1.92, NEE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
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
70.10% 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.
DP70.1%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
81.12
+1.23 (+1.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change-0.22%
Ins Owners0.05%
Ins Owner Change-1.01%
Market Cap168.94B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (13.28%)
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 | 21.92 | ||
| Fwd PE | 20.06 | ||
| P/S | 6.42 | ||
| P/FCF | 54.98 | ||
| P/OCF | 14.12 | ||
| P/B | 3.12 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 17.71 |
EPS(TTM)3.7
EY4.56%
EPS(NY)4.04
Fwd EY4.98%
FCF(TTM)1.48
FCFY1.82%
OCF(TTM)5.75
OCFY7.08%
SpS12.63
BVpS26.02
TBVpS23.69
PEG (NY)2.6
PEG (5Y)2.12
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 | 1.09 |
F-Score4
WACC7.04%
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.