NEXTERA ENERGY INC (NEE) Fundamental Analysis & Valuation

NYSE:NEE • US65339F1012

Current stock price

92.54 USD
+0.49 (+0.53%)
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.
  • NEE had a positive operating cash flow in the past year.
  • NEE had positive earnings in each of the past 5 years.
  • In the past 5 years NEE always reported a positive cash flow from operatings.
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

  • The Return On Assets of NEE (3.21%) is better than 72.34% of its industry peers.
  • NEE's Return On Equity of 12.51% is amongst the best of the industry. NEE outperforms 85.11% of its industry peers.
  • With a Return On Invested Capital value of 3.29%, NEE is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
  • NEE had an Average Return On Invested Capital over the past 3 years of 3.90%. This 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.
  • NEE's Operating Margin of 29.26% is amongst the best of the industry. NEE outperforms 100.00% of its industry peers.
  • NEE's Operating Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEE 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.
  • 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

  • Based on the Altman-Z score of 1.16, we must say that NEE is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.16, NEE is doing good in the industry, outperforming 74.47% of the companies in the same industry.
  • NEE has a debt to FCF ratio of 29.78. This is a negative value and a sign of low solvency as NEE would need 29.78 years to pay back of all of its debts.
  • The Debt to FCF ratio of NEE (29.78) is better than 80.85% of its industry peers.
  • 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 65.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 29.78
Altman-Z 1.16
ROIC/WACC0.44
WACC7.45%
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.
  • NEE has a Current ratio of 0.60. This is in the lower half of the industry: NEE underperforms 74.47% of its industry peers.
  • A Quick Ratio of 0.49 indicates that NEE may have some problems paying its short term obligations.
  • The Quick ratio of NEE (0.49) is comparable to the rest of the 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.
  • 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 10.75% 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)8.16%
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

  • NEE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
  • 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 Year9.64%
Revenue Next 2Y9.13%
Revenue Next 3Y9.48%
Revenue Next 5Y8.26%

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 stable.
  • 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

  • With a Price/Earnings ratio of 24.94, NEE is valued on the expensive side.
  • Compared to the rest of the industry, the Price/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/Earnings ratio of NEE to the average of the S&P500 Index (24.75), we can say NEE is valued inline with the index average.
  • NEE is valuated rather expensively with a Price/Forward Earnings ratio of 22.85.
  • 76.60% of the companies in the same industry are cheaper than NEE, based on the Price/Forward Earnings ratio.
  • NEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.94
Fwd PE 22.85
NEE Price Earnings VS Forward Price EarningsNEE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NEE is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
  • Based on the Price/Free Cash Flow ratio, NEE is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 60.05
EV/EBITDA 18.85
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.
  • The decent profitability rating of NEE may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)2.52
EPS Next 2Y9.11%
EPS Next 3Y8.88%

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4

5. NEE Dividend Analysis

5.1 Amount

  • NEE has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.86, NEE is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.89, NEE pays a bit more dividend than the S&P500 average.
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.
  • The dividend of NEE decreased in the last 3 years.
Dividend Growth(5Y)10.05%
Div Incr Years2
Div Non Decr Years2
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

  • 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 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 (3/31/2026, 12:52:09 PM)

92.54

+0.49 (+0.53%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners83.77%
Inst Owner Change-0.56%
Ins Owners0.06%
Ins Owner Change3.35%
Market Cap192.81B
Revenue(TTM)27.41B
Net Income(TTM)6.83B
Analysts77.42
Price Target95.13 (2.8%)
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 Years2
Div Non Decr Years2
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)-3.29%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.79%
Valuation
Industry RankSector Rank
PE 24.94
Fwd PE 22.85
P/S 7.03
P/FCF 60.05
P/OCF 15.44
P/B 3.53
P/tB 3.87
EV/EBITDA 18.85
EPS(TTM)3.71
EY4.01%
EPS(NY)4.05
Fwd EY4.38%
FCF(TTM)1.54
FCFY1.67%
OCF(TTM)5.99
OCFY6.48%
SpS13.16
BVpS26.21
TBVpS23.88
PEG (NY)2.72
PEG (5Y)2.52
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 1.16
F-Score4
WACC7.45%
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 Year9.64%
Revenue Next 2Y9.13%
Revenue Next 3Y9.48%
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.


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 9.18% in the next year.