NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
80.28 USD
-0.25 (-0.31%)
80.45 USD
+0.17 (+0.21%)
Overall NEE gets a fundamental rating of 4 out of 10. We evaluated NEE against 47 industry peers in the Electric Utilities industry. NEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEE is quite expensive at the moment. It does show a decent growth rate.
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.
NEE had positive earnings in each of the past 5 years.
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 65.96% of the companies in the same industry.
The Return On Equity of NEE (12.00%) is better than 63.83% of its industry peers.
With a Return On Invested Capital value of 3.58%, NEE is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for NEE is in line with the industry average of 5.04%.
| 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's Profit Margin of 24.72% is amongst the best of the industry. NEE outperforms 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 28.15%, NEE belongs to the top of the industry, outperforming 95.74% 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.
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
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.
The Altman-Z score of NEE (1.09) is better than 70.21% 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 has a better Debt to FCF ratio (30.30) than 80.85% 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.
With a Debt to Equity ratio value of 1.65, NEE is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.51
WACC7%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
NEE's Current ratio of 0.55 is on the low side compared to the rest of the industry. NEE is outperformed by 87.23% 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 82.98% 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.
NEE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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 7.63% 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 8.05% on average per year.
EPS Next Y8.42%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
EPS Next 5Y7.63%
Revenue Next Year5.87%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y8.05%
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
NEE is valuated rather expensively with a Price/Earnings ratio of 21.70.
Based on the Price/Earnings ratio, NEE is valued a bit more expensive than the industry average as 76.60% of the companies are valued more cheaply.
NEE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 19.86, which indicates a rather expensive current valuation of NEE.
Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than 78.72% of the companies in the same industry.
NEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
80.85% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
78.72% of the companies in the same industry are more expensive than NEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.41 | ||
| EV/EBITDA | 17.77 |
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)2.58
PEG (5Y)2.09
EPS Next 2Y8.57%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.82%.
NEE's Dividend Yield is slightly below the industry average, which is at 3.02.
NEE's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of NEE grows each year by 10.61%, which is quite nice.
NEE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NEE decreased 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.
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%
80.28
-0.25 (-0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.12%
Inst Owner Change2.02%
Ins Owners0.05%
Ins Owner Change-1.01%
Market Cap167.19B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (14.46%)
Short Float %1.73%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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%
PT rev (3m)10.46%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)4.85%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 19.86 | ||
| P/S | 6.36 | ||
| P/FCF | 54.41 | ||
| P/OCF | 13.97 | ||
| P/B | 3.09 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)3.7
EY4.61%
EPS(NY)4.04
Fwd EY5.04%
FCF(TTM)1.48
FCFY1.84%
OCF(TTM)5.75
OCFY7.16%
SpS12.63
BVpS26.02
TBVpS23.69
PEG (NY)2.58
PEG (5Y)2.09
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%
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 5Y7.63%
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 5Y8.05%
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 1 / 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.