NEXTERA ENERGY INC (NEE) Fundamental Analysis & Valuation
NYSE:NEE • US65339F1012
Current stock price
90.72 USD
+1.22 (+1.36%)
Last:
This NEE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- Each year in the past 5 years NEE has been profitable.
- In the past 5 years NEE always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.21%, NEE is doing good in the industry, outperforming 72.34% of the companies in the same industry.
- NEE has a better Return On Equity (12.51%) than 85.11% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.29%, NEE is doing worse than 72.34% of the companies in the same industry.
- 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 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
- NEE has a better Profit Margin (24.93%) than 100.00% of its industry peers.
- 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 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. NEE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
2.2 Solvency
- Based on the Altman-Z score of 1.14, we must say that NEE is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.14, 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.
- Looking at the Debt to FCF ratio, with a value of 29.78, NEE belongs to the top 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.
- NEE has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: NEE underperforms 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 29.78 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.45
WACC7.39%
2.3 Liquidity
- NEE has a Current 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.
- NEE has a worse Current ratio (0.60) 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.
- Looking at the Quick ratio, with a value of 0.49, NEE is in line with its industry, outperforming 40.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.49 |
3. NEE Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 8.16% 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 10.75% in the past year. This is quite good.
- The Revenue has been growing by 8.78% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 8.26% on average over the next years. This is quite good.
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
- 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.
4. NEE Valuation Analysis
4.1 Price/Earnings Ratio
- NEE is valuated rather expensively with a Price/Earnings ratio of 24.45.
- Based on the Price/Earnings ratio, NEE is valued a bit more expensive than the industry average as 76.60% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of NEE to the average of the S&P500 Index (25.23), we can say NEE is valued inline with the index average.
- With a Price/Forward Earnings ratio of 22.40, NEE is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, NEE is valued a bit more expensive than 76.60% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, NEE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEE is valued more expensive than 80.85% of the companies in the same industry.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.87 | ||
| EV/EBITDA | 18.5 |
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)2.66
PEG (5Y)2.47
EPS Next 2Y9.11%
EPS Next 3Y8.88%
5. NEE Dividend Analysis
5.1 Amount
- NEE has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.84, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
- The dividend of NEE is nicely growing with an annual growth rate of 10.05%!
- 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
5.3 Sustainability
- 68.48% of the earnings are spent on dividend by NEE. 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 Fundamentals: All Metrics, Ratios and Statistics
NYSE:NEE (3/23/2026, 9:37:10 AM)
90.72
+1.22 (+1.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners83.77%
Inst Owner Change-0.56%
Ins Owners0.06%
Ins Owner Change3.33%
Market Cap189.02B
Revenue(TTM)27.41B
Net Income(TTM)6.83B
Analysts77.42
Price Target94.55 (4.22%)
Short Float %2.27%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend2.26
Dividend Growth(5Y)10.05%
DP68.48%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-27 2026-02-27 (0.6232)
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)0.42%
PT rev (3m)2.94%
EPS NQ rev (1m)-6.83%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.4 | ||
| P/S | 6.9 | ||
| P/FCF | 58.87 | ||
| P/OCF | 15.14 | ||
| P/B | 3.46 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)3.71
EY4.09%
EPS(NY)4.05
Fwd EY4.46%
FCF(TTM)1.54
FCFY1.7%
OCF(TTM)5.99
OCFY6.61%
SpS13.16
BVpS26.21
TBVpS23.88
PEG (NY)2.66
PEG (5Y)2.47
Graham Number46.77
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.14 |
F-Score4
WACC7.39%
ROIC/WACC0.45
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.