NYSE:NEE

Stock Analysis Report

Executive Summary

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has NextEra Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

NEE

1.7%

US Electric Utilities

0.07%

US Market


1 Year Return

38.5%

NEE

18.3%

US Electric Utilities

8.9%

US Market

Return vs Industry: NEE exceeded the US Electric Utilities industry which returned 18.3% over the past year.

Return vs Market: NEE exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

NEEIndustryMarket
7 Day3.8%1.7%0.07%
30 Day4.7%0.3%-0.3%
90 Day12.5%6.6%-1.6%
1 Year41.9%38.5%22.2%18.3%11.3%8.9%
3 Year104.0%88.2%44.8%30.3%46.3%36.8%
5 Year174.0%138.3%71.4%42.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is NextEra Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NextEra Energy undervalued compared to its fair value and its price relative to the market?

33.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEE ($236.24) is trading above our estimate of fair value ($119.42)

Significantly Below Fair Value: NEE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEE is poor value based on its PE Ratio (33.7x) compared to the Electric Utilities industry average (23.9x).

PE vs Market: NEE is poor value based on its PE Ratio (33.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NEE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: NEE is overvalued based on its PB Ratio (3.2x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

How is NextEra Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEE's forecast earnings growth (11.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NEE's earnings (11.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: NEE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NEE's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NEE's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEE's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has NextEra Energy performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NEE's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: NEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEE had negative earnings growth (-59.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.2%).


Return on Equity

High ROE: NEE's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: NEE has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: NEE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NextEra Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NEE's short term assets ($7.5B) do not cover its short term liabilities ($14.4B)

Long Term Liabilities: NEE's short term assets (7.5B) do not cover its long term liabilities (57.6B)


Debt to Equity History and Analysis

Debt Level: NEE's debt to equity ratio (108.4%) is considered high

Reducing Debt: NEE's debt to equity ratio has reduced from 163.7% to 108.4% over the past 5 years.

Debt Coverage: NEE's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: NEE's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: NEE has a high level of physical assets or inventory.

Debt Coverage by Assets: NEE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is NextEra Energy's current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NEE's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NEE's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: NEE's dividends per share have been stable in the past 10 years.

Growing Dividend: NEE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.4%), NEE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEE's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

Management

What is the CEO of NextEra Energy's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Jim Robo (56yo)

7.3yrs

Tenure

US$21,358,742

Compensation

Mr. James L. Robo, also known as Jim, has been Chairman of the Board and Chief Executive Officer of NextEra Energy Partners, LP since August 2017. Mr. Robo was the Chairman and Chief Executive Officer of N ...


CEO Compensation Analysis

Compensation vs. Market: Jim's total compensation ($USD21.36M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.4yrs

Average Tenure

51yo

Average Age

Experienced Management: NEE's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NEE's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jim Robo (56yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$21.36m
  • Charles Sieving (46yo)

    Executive VP & General Counsel

    • Tenure: 10.8yrs
    • Compensation: US$2.90m
  • Eric Silagy (53yo)

    CEO & President of Florida Power and Light Company

    • Tenure: 5.4yrs
    • Compensation: US$6.60m
  • John Ketchum (48yo)

    President & CEO of NextEra Energy Resources

    • Tenure: 0.8yrs
    • Compensation: US$4.98m
  • Mano Nazar (64yo)

    Chief Nuclear Officer & President of Nuclear Division

    • Tenure: 5.4yrs
    • Compensation: US$5.71m
  • Rebecca Kujawa (43yo)

    Executive VP of Finance & CFO

    • Tenure: 0.6yrs
  • Deb Caplan (56yo)

    Executive VP of Human Resources & Corporate Services

    • Tenure: 6.5yrs
  • Mark Hickson (51yo)

    Executive Vice President of Corporate Development

    • Tenure: 2.8yrs
  • William Seeley

    VP of Compliance & Corporate Secretary

    • Tenure: 5.7yrs
  • James May (42yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Bill Swanson (70yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$312.61k
  • Hansel Tookes (71yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$302.11k
  • Rudy Schupp (68yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$298.74k
  • Sherry Barrat (69yo)

    Lead Director

    • Tenure: 3.8yrs
    • Compensation: US$303.61k
  • Toni Jennings (69yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$288.61k
  • Kirk Hachigian (59yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$297.61k
  • Amy Lane (66yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$293.67k
  • Jim Robo (56yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$21.36m
  • James Camaren (64yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$282.61k
  • Ken Dunn (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$298.61k

Company Information

NextEra Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NextEra Energy, Inc.
  • Ticker: NEE
  • Exchange: NYSE
  • Founded: 1925
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$113.183b
  • Shares outstanding: 479.10m
  • Website: https://www.nexteraenergy.com

Number of Employees


Location

  • NextEra Energy, Inc.
  • 700 Universe Boulevard
  • Juno Beach
  • Florida
  • 33408
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
FP3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0K80LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
NEE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
NEEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
NEXT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.01BRBRLMay 2019

Biography

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through win ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.