NEXTERA ENERGY INC (NEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEE - US65339F1012 - Common Stock
79.92 USD
-1.13 (-1.39%)
Overall NEE gets a fundamental rating of 4 out of 10. We evaluated NEE against 46 industry peers in the Electric Utilities industry. NEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, NEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NEE was profitable.
NEE had a positive operating cash flow in the past year.
In the past 5 years NEE has always been profitable.
Each year in the past 5 years NEE had a positive operating cash flow.
1.2 Ratios
NEE's Return On Assets of 3.18% is fine compared to the rest of the industry. NEE outperforms 67.39% of its industry peers.
The Return On Equity of NEE (12.00%) is better than 63.04% of its industry peers.
With a Return On Invested Capital value of 3.58%, NEE is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for NEE is in line with the industry average of 4.58%.
| 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 has a Profit Margin of 24.72%. This is amongst the best in the industry. NEE outperforms 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 28.15%, NEE belongs to the top of the industry, outperforming 95.65% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEE is destroying value.
Compared to 1 year ago, NEE has more shares outstanding
Compared to 5 years ago, NEE has more shares outstanding
NEE has a worse debt/assets ratio than last year.
2.2 Solvency
NEE has an Altman-Z score of 1.10. This is a bad value and indicates that NEE is not financially healthy and even has some risk of bankruptcy.
NEE has a Altman-Z score of 1.10. This is in the better half of the industry: NEE outperforms 71.74% of its industry peers.
NEE has a debt to FCF ratio of 30.30. This is a negative value and a sign of low solvency as NEE would need 30.30 years to pay back of all of its debts.
NEE's Debt to FCF ratio of 30.30 is amongst the best of the industry. NEE outperforms 80.43% of its industry peers.
NEE has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.65, NEE is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.51
WACC7.03%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NEE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, NEE is doing worse than 86.96% of the companies in the same industry.
NEE has a Quick Ratio of 0.55. 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's Quick ratio of 0.45 is on the low side compared to the rest of the industry. NEE is outperformed by 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
NEE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.19%, 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 10.36% on average per year.
The Revenue has been growing slightly by 0.20% in the past year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NEE is valuated rather expensively with a Price/Earnings ratio of 21.60.
76.09% of the companies in the same industry are cheaper than NEE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (27.17), we can say NEE is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.77 indicates a rather expensive valuation of NEE.
NEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NEE is more expensive than 78.26% of the companies in the same industry.
NEE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
80.43% of the companies in the same industry are cheaper than NEE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NEE is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.16 | ||
| EV/EBITDA | 17.88 |
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)2.57
PEG (5Y)2.08
EPS Next 2Y8.57%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
NEE has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
NEE's Dividend Yield is slightly below the industry average, which is at 3.05.
Compared to an average S&P500 Dividend Yield of 1.94, NEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of NEE is nicely growing with an annual growth rate of 10.61%!
NEE has paid a dividend for at least 10 years, which is 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
NEE pays out 70.10% 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.
DP70.1%
EPS Next 2Y8.57%
EPS Next 3Y8.77%
NYSE:NEE (1/7/2026, 9:56:07 AM)
79.92
-1.13 (-1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-1.01%
Market Cap166.44B
Revenue(TTM)26.30B
Net Income(TTM)6.50B
Analysts77.33
Price Target91.89 (14.98%)
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)10.15%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)4.85%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.77 | ||
| P/S | 6.33 | ||
| P/FCF | 54.16 | ||
| P/OCF | 13.91 | ||
| P/B | 3.07 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 17.88 |
EPS(TTM)3.7
EY4.63%
EPS(NY)4.04
Fwd EY5.06%
FCF(TTM)1.48
FCFY1.85%
OCF(TTM)5.75
OCFY7.19%
SpS12.63
BVpS26.02
TBVpS23.69
PEG (NY)2.57
PEG (5Y)2.08
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 | 1.1 |
F-Score4
WACC7.03%
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 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 8.42% in the next year.