NextEra Energy Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
NextEra Energy, Inc. is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns one of the largest energy infrastructure development companies in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage.
Did you know?
Carries 34.0x more debt than cash on its balance sheet.
Current Price
$93.15
+0.32%GoodMoat Value
$62.46
33.0% overvaluedProfile
Valuation (TTM)
Market Cap$194.00B
P/E28.39
EV$280.72B
P/B3.55
Shares Out2.08B
P/Sales7.08
Revenue$27.41B
EV/EBITDA16.69
NextEra Energy Inc (NEE) Stock Analysis
GoodMoat Analysis
NextEra Energy is a leading regulated utility with a massive renewable energy development arm. While it possesses a strong moat from regulatory barriers and scale, its valuation appears unfavourable, trading at a significant premium to the GoodMoat target price.
Read full analysis
NextEra Energy operates through two segments: a regulated utility in Florida (FPL) and a world-leading competitive clean energy development business (Energy Resources). This dual model provides stable cash flows from the regulated utility while offering growth through renewable project development. Applying the GoodMoat framework, the company demonstrates a durable moat, scoring highly on criteria like Regulatory Barriers (its Florida utility franchise), Scale Privilege (massive renewable project portfolio and development pipeline), and Strategic Partnerships (long-term contracts with utilities and corporations). Its Quality Indicators are mixed, showing strong revenue growth of 20.7% YoY and a robust operating margin of 30.2%, but a high Debt/Equity ratio of 1.75 and a low Free Cash Flow Yield of 1.7% are points of concern. The primary issue is valuation. The current price of $90.82 is 45% above the GoodMoat target of $62.46, indicating a negative margin of safety. The P/E of 27.8 is also high for a utility. According to the Decision Framework, while the business likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate. The extreme premium to the target price and elevated P/E, combined with high leverage, make the current price unfavourable for a value investor seeking a margin of safety. Further investigation would be warranted only at a significantly lower entry point.
Market Cap$194.00B
Current Price$93.15
P/E Ratio28.39
Forward P/E—
PEG Ratio1.03
EPS$3.30
Book Value$26.22
P/B Ratio3.55
NEE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 6.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 92.8B
Revenue
19.2B
FY19
18.0B
FY20
17.1B
FY21
21.0B
FY22
28.1B
FY23
24.8B
FY24
27.4B
FY25
Net Income
3.8B
FY19
2.9B
FY20
3.6B
FY21
4.1B
FY22
7.3B
FY23
6.9B
FY24
6.8B
FY25
NEE 52-Week Range
$62.26
$95.05
50-Day MA: $90.71200-Day MA: $80.24
Did you know?
Profit margin of 24.9% — that's well above average.
NextEra Energy Inc (NEE) Financial Summary
NextEra Energy Inc (NEE) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $93.15 with a market capitalization of $194.00B.
Key valuation metrics include a P/E ratio of 28.39, price-to-book ratio of 3.55, and EPS of $3.30. The company reports a profit margin of 24.9% and return on equity of 12.5%.
NEE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $194.00B |
| P/E Ratio | 28.39 |
| EPS | $3.30 |
| P/B Ratio | 3.55 |
| P/S Ratio | 7.08 |
| EV/EBITDA | 16.69 |
| Dividend Yield | 2.41% |
| Profit Margin | 24.9% |
| Return on Equity | 12.5% |
| Debt/Equity | 1.75 |
NEE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $19.20B | $3.77B |
| FY20 | $18.00B | $2.92B |
| FY21 | $17.07B | $3.57B |
| FY22 | $20.96B | $4.15B |
| FY23 | $28.11B | $7.31B |
| FY24 | $24.75B | $6.95B |
| FY25 | $27.41B | $6.83B |
NextEra Energy Inc (NEE) Valuation
Based on GoodMoat's DCF model, NextEra Energy Inc has a fair value estimate of $62.46. At the current price of $93.15, the stock appears 49.1% overvalued relative to our intrinsic value estimate.
NEE Quality Indicators
NextEra Energy Inc maintains a profit margin of 24.9% and an operating margin of 30.2%. Return on equity stands at 12.5%. The current ratio is 0.60. Debt-to-equity ratio is 1.75.
About NextEra Energy Inc
NextEra Energy, Inc. is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns one of the largest energy infrastructure development companies in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage.
NEE Free Cash Flow
NextEra Energy Inc generated $3.21B in trailing twelve-month free cash flow, representing an FCF yield of 1.66%. This low FCF yield may reflect heavy reinvestment or growth spending.
NEE Shares Outstanding
NextEra Energy Inc has 2.08 billion shares outstanding at a share price of $93.15, giving it a market capitalization of $194.00B.
NEE Recent Insider Trades
Recent insider transactions at NextEra Energy Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Daggs Nicole J (EVP, Human Res & Corp Svcs) | SELL | 4,189 | $389577.00 |
| May James Michael (Treasurer and Asst. Secretary) | SELL | 4,672 | $421741.44 |
| Crews Terrell Kirk II (EVP, Chief Risk Officer) | SELL | 5,612 | $506595.24 |