NEXTERA ENERGY INC (NEE) Fundamental Analysis & Valuation

NYSE:NEE • US65339F1012

Current stock price

93.24 USD
-0.43 (-0.46%)
Last:

This NEE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NEE Profitability Analysis

1.1 Basic Checks

  • In the past year NEE was profitable.
  • 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.
NEE Yearly Net Income VS EBIT VS OCF VS FCFNEE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • NEE's Return On Assets of 3.21% is fine compared to the rest of the industry. NEE outperforms 72.34% of its industry peers.
  • NEE has a Return On Equity of 12.51%. This is amongst the best in the industry. NEE outperforms 85.11% of its industry peers.
  • NEE's Return On Invested Capital of 3.29% is on the low side compared to the rest of the industry. NEE is outperformed by 72.34% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NEE is in line with the industry average of 4.52%.
Industry RankSector 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%
NEE Yearly ROA, ROE, ROICNEE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 24.93%, NEE belongs to the best of the industry, outperforming 100.00% 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 29.26%, NEE belongs to the top of the industry, outperforming 100.00% 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 RankSector 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
NEE Yearly Profit, Operating, Gross MarginsNEE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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2

2. NEE Health Analysis

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.
  • The number of shares outstanding for NEE has been increased compared to 5 years ago.
  • The debt/assets ratio for NEE is higher compared to a year ago.
NEE Yearly Shares OutstandingNEE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
NEE Yearly Total Debt VS Total AssetsNEE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

2.2 Solvency

  • NEE has an Altman-Z score of 1.17. 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 (1.17) is better than 74.47% 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.
  • With an excellent Debt to FCF ratio value of 29.78, NEE belongs to the best of the industry, outperforming 80.85% 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.
  • With a Debt to Equity ratio value of 1.69, NEE is not doing good in the industry: 65.96% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 29.78
Altman-Z 1.17
ROIC/WACC0.44
WACC7.4%
NEE Yearly LT Debt VS Equity VS FCFNEE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B 80B

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 74.47% of its industry peers.
  • NEE has a Quick 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.
  • With a Quick ratio value of 0.49, NEE perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.49
NEE Yearly Current Assets VS Current LiabilitesNEE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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6

3. NEE Growth Analysis

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.
  • The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
  • NEE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.75%.
  • 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

  • Based on estimates for the next years, NEE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% 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 8.26% on average per year.
EPS Next Y9.18%
EPS Next 2Y9.11%
EPS Next 3Y8.88%
EPS Next 5Y8.46%
Revenue Next Year10.4%
Revenue Next 2Y9.56%
Revenue Next 3Y9.54%
Revenue Next 5Y8.26%

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.
NEE Yearly Revenue VS EstimatesNEE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
NEE Yearly EPS VS EstimatesNEE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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2

4. NEE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.13, the valuation of NEE can be described as expensive.
  • NEE's Price/Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 76.60% 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 26.21, which is the current average of the S&P500 Index.
  • NEE is valuated rather expensively with a Price/Forward Earnings ratio of 23.02.
  • NEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 76.60% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of NEE to the average of the S&P500 Index (23.10), we can say NEE is valued inline with the index average.
Industry RankSector Rank
PE 25.13
Fwd PE 23.02
NEE Price Earnings VS Forward Price EarningsNEE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 82.98% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
  • NEE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEE is cheaper than 78.72% of the companies in the same industry.
Industry RankSector Rank
P/FCF 60.5
EV/EBITDA 19.08
NEE Per share dataNEE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)2.74
PEG (5Y)2.53
EPS Next 2Y9.11%
EPS Next 3Y8.88%

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4

5. NEE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.73%, NEE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.85, NEE is paying slightly less dividend.
  • NEE's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.73%

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.
Dividend Growth(5Y)10.05%
Div Incr Years0
Div Non Decr Years0
NEE Yearly Dividends per shareNEE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • NEE pays out 68.48% of its income as dividend. 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 2Y9.11%
EPS Next 3Y8.88%
NEE Yearly Income VS Free CF VS DividendNEE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B
NEE Dividend Payout.NEE Dividend Payout, showing the Payout Ratio.NEE Dividend Payout.PayoutRetained Earnings

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NEE Fundamentals: All Metrics, Ratios and Statistics

NEXTERA ENERGY INC

NYSE:NEE (4/8/2026, 10:33:05 AM)

93.24

-0.43 (-0.46%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)01-27
Earnings (Next)04-28
Inst Owners83.77%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner Change3.61%
Market Cap194.27B
Revenue(TTM)27.41B
Net Income(TTM)6.83B
Analysts77.42
Price Target95.13 (2.03%)
Short Float %2.34%
Short Ratio4.79
Dividend
Industry RankSector Rank
Dividend Yield 2.73%
Yearly Dividend2.26
Dividend Growth(5Y)10.05%
DP68.48%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
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)0.62%
PT rev (3m)3.53%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 25.13
Fwd PE 23.02
P/S 7.09
P/FCF 60.5
P/OCF 15.56
P/B 3.56
P/tB 3.9
EV/EBITDA 19.08
EPS(TTM)3.71
EY3.98%
EPS(NY)4.05
Fwd EY4.34%
FCF(TTM)1.54
FCFY1.65%
OCF(TTM)5.99
OCFY6.43%
SpS13.16
BVpS26.21
TBVpS23.88
PEG (NY)2.74
PEG (5Y)2.53
Graham Number46.77
Profitability
Industry RankSector 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 RankSector 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 1.17
F-Score4
WACC7.4%
ROIC/WACC0.44
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 Y9.18%
EPS Next 2Y9.11%
EPS Next 3Y8.88%
EPS Next 5Y8.46%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%20.71%
Revenue Next Year10.4%
Revenue Next 2Y9.56%
Revenue Next 3Y9.54%
Revenue Next 5Y8.26%
EBIT growth 1Y12.51%
EBIT growth 3Y31.1%
EBIT growth 5Y10.15%
EBIT Next Year87.84%
EBIT Next 3Y31.68%
EBIT Next 5Y20.01%
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 Fundamental Analysis 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.


What is the profitability of NEE stock?

NEXTERA ENERGY INC (NEE) has a profitability rating of 6 / 10.


What is the valuation of NEXTERA ENERGY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for NEXTERA ENERGY INC (NEE) is 25.13 and the Price/Book (PB) ratio is 3.56.


What is the earnings growth outlook for NEXTERA ENERGY INC?

The Earnings per Share (EPS) of NEXTERA ENERGY INC (NEE) is expected to grow by 9.18% in the next year.