NEXTERA ENERGY INC (NEE) Fundamental Analysis & Valuation

NYSE:NEE • US65339F1012

Current stock price

96.95 USD
-0.93 (-0.95%)
At close:
96.95 USD
0 (0%)
After Hours:

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.
  • In the past 5 years NEE has always been profitable.
  • Each year in the past 5 years NEE had a positive operating cash flow.
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 has a better Return On Assets (3.70%) than 78.72% of its industry peers.
  • Looking at the Return On Equity, with a value of 14.82%, NEE belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
  • NEE's Return On Invested Capital of 3.02% is on the low side compared to the rest of the industry. NEE is outperformed by 78.72% 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 4.52%.
Industry RankSector Rank
ROA 3.7%
ROE 14.82%
ROIC 3.02%
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

  • NEE has a better Profit Margin (29.36%) than 100.00% 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 27.81%, 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 RankSector Rank
OM 27.81%
PM (TTM) 29.36%
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.
  • The number of shares outstanding for NEE has been increased compared to 1 year ago.
  • 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.
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 1.14. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
  • NEE's Altman-Z score of 1.14 is fine compared to the rest of the industry. NEE outperforms 70.21% of its industry peers.
  • The Debt to FCF ratio of NEE is 44.18, which is on the high side as it means it would take NEE, 44.18 years of fcf income to pay off all of its debts.
  • NEE has a better Debt to FCF ratio (44.18) than 80.85% of its industry peers.
  • NEE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
  • NEE has a worse Debt to Equity ratio (1.82) than 70.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 44.18
Altman-Z 1.14
ROIC/WACC0.42
WACC7.25%
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

  • NEE has a Current Ratio of 0.54. This is a bad value and indicates that NEE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.54, NEE is doing worse than 82.98% of the companies in the same industry.
  • NEE has a Quick Ratio of 0.54. 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 worse Quick ratio (0.44) than 76.60% of its industry peers.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.44
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

  • The Earnings Per Share has grown by an nice 8.55% over the past year.
  • 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.
  • The Revenue has grown by 10.29% in the past year. This is quite good.
  • 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)8.55%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%10.1%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%7.27%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.49% on average over the next years. This is quite good.
  • NEE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.49% yearly.
EPS Next Y9.16%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
EPS Next 5Y8.49%
Revenue Next Year10.36%
Revenue Next 2Y9.41%
Revenue Next 3Y9.54%
Revenue Next 5Y9.49%

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.
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

  • NEE is valuated quite expensively with a Price/Earnings ratio of 25.45.
  • Based on the Price/Earnings ratio, NEE is valued a bit more expensive than 76.60% of the companies in the same industry.
  • NEE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
  • NEE is valuated rather expensively with a Price/Forward Earnings ratio of 21.98.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NEE indicates a slightly more expensive valuation: NEE is more expensive than 76.60% 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 (21.75), we can say NEE is valued inline with the index average.
Industry RankSector Rank
PE 25.45
Fwd PE 21.98
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

  • NEE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NEE is more expensive than 80.85% of the companies in the same industry.
  • 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 85.56
EV/EBITDA 20.02
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 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)2.78
PEG (5Y)2.57
EPS Next 2Y9.04%
EPS Next 3Y8.85%

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4

5. NEE Dividend Analysis

5.1 Amount

  • NEE has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.83, NEE is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, NEE pays a bit more dividend than the S&P500 average.
Industry RankSector 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.
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

  • 58.83% of the earnings are spent on dividend by NEE. This is a bit on the high side, but may be sustainable.
  • The dividend of NEE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.83%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
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 (5/1/2026, 4:02:07 PM)

After market: 96.95 0 (0%)

96.95

-0.93 (-0.95%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Industry Strength52.17
Industry Growth22.36
Earnings (Last)04-23
Earnings (Next)07-21
Inst Owners84.1%
Inst Owner Change0.33%
Ins Owners0.06%
Ins Owner Change3.61%
Market Cap202.17B
Revenue(TTM)27.87B
Net Income(TTM)8.18B
Analysts77.42
Price Target98.43 (1.53%)
Short Float %2.17%
Short Ratio4.67
Dividend
Industry RankSector Rank
Dividend Yield 2.55%
Yearly Dividend2.26
Dividend Growth(5Y)10.05%
DP58.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.06%
Min EPS beat(2)1.67%
Max EPS beat(2)12.46%
EPS beat(4)4
Avg EPS beat(4)6.78%
Min EPS beat(4)1.67%
Max EPS beat(4)12.46%
EPS beat(8)6
Avg EPS beat(8)3.61%
EPS beat(12)10
Avg EPS beat(12)5.23%
EPS beat(16)14
Avg EPS beat(16)5.98%
Revenue beat(2)0
Avg Revenue beat(2)-5.97%
Min Revenue beat(2)-8.81%
Max Revenue beat(2)-3.14%
Revenue beat(4)0
Avg Revenue beat(4)-5.99%
Min Revenue beat(4)-10.09%
Max Revenue beat(4)-1.93%
Revenue beat(8)0
Avg Revenue beat(8)-10.4%
Revenue beat(12)3
Avg Revenue beat(12)-4.54%
Revenue beat(16)5
Avg Revenue beat(16)-1.61%
PT rev (1m)1.56%
PT rev (3m)3.79%
EPS NQ rev (1m)-2.62%
EPS NQ rev (3m)-3.27%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.02%
Valuation
Industry RankSector Rank
PE 25.45
Fwd PE 21.98
P/S 7.25
P/FCF 85.56
P/OCF 16.4
P/B 3.66
P/tB 4.04
EV/EBITDA 20.02
EPS(TTM)3.81
EY3.93%
EPS(NY)4.41
Fwd EY4.55%
FCF(TTM)1.13
FCFY1.17%
OCF(TTM)5.91
OCFY6.1%
SpS13.36
BVpS26.48
TBVpS24.01
PEG (NY)2.78
PEG (5Y)2.57
Graham Number47.6459 (-50.86%)
Profitability
Industry RankSector Rank
ROA 3.7%
ROE 14.82%
ROCE 3.96%
ROIC 3.02%
ROICexc 3.05%
ROICexgc 3.13%
OM 27.81%
PM (TTM) 29.36%
GM N/A
FCFM 8.48%
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)4.17%
ROICexgc(5y)3.32%
ROCE(3y)5.04%
ROCE(5y)4.03%
ROICexgc growth 3Y16.58%
ROICexgc growth 5Y-0.66%
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-Score5
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 44.18
Debt/EBITDA 6.71
Cap/Depr 137.91%
Cap/Sales 35.77%
Interest Coverage 1.99
Cash Conversion 82.32%
Profit Quality 28.88%
Current Ratio 0.54
Quick Ratio 0.44
Altman-Z 1.14
F-Score5
WACC7.25%
ROIC/WACC0.42
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)8.55%
EPS 3Y8.43%
EPS 5Y9.92%
EPS Q2Q%10.1%
EPS Next Y9.16%
EPS Next 2Y9.04%
EPS Next 3Y8.85%
EPS Next 5Y8.49%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y9.36%
Revenue growth 5Y8.78%
Sales Q2Q%7.27%
Revenue Next Year10.36%
Revenue Next 2Y9.41%
Revenue Next 3Y9.54%
Revenue Next 5Y9.49%
EBIT growth 1Y4.84%
EBIT growth 3Y31.1%
EBIT growth 5Y10.15%
EBIT Next Year91.22%
EBIT Next 3Y32.77%
EBIT Next 5Y21.66%
FCF growth 1Y-20.78%
FCF growth 3YN/A
FCF growth 5Y21.04%
OCF growth 1Y-2.95%
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 25.45 and the Price/Book (PB) ratio is 3.66.


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 9.16% in the next year.