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
Overall NEE gets a fundamental rating of 4 out of 10. We evaluated NEE against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of NEE while its profitability can be described as average. 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.
- 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
- The Return On Assets of NEE (3.21%) is better than 67.39% of its industry peers.
- The Return On Equity of NEE (12.51%) is better than 65.22% of its industry peers.
- 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
- The Profit Margin of NEE (24.93%) is better 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
- NEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for NEE has been increased compared to 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
- 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.
- 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.
- With an excellent Debt to FCF ratio value of 29.78, NEE belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- NEE has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- NEE's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. NEE is outperformed by 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
WACC7.28%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that NEE may have some problems paying its short term obligations.
- The Current ratio of NEE (0.60) is worse 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's Quick ratio of 0.49 is on the low side compared to the rest of the industry. NEE is outperformed by 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.
- Looking at the last year, NEE shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 23.69, NEE is valued on the expensive side.
- 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.
- The average S&P500 Price/Earnings ratio is at 28.32. NEE is around the same levels.
- 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.
- When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (25.57), we can say NEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEE indicates a rather expensive valuation: NEE more expensive than 80.43% of the companies listed in the same industry.
- 78.26% 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 | 57.01 | ||
| EV/EBITDA | 18.27 |
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
- With a Yearly Dividend Yield of 2.57%, NEE has a reasonable but not impressive dividend return.
- 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 1.83, 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 paid a dividend for at least 10 years, which is 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.