NYSE:NEE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: NEE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

NEE

1.3%

US Electric Utilities

2.3%

US Market


1 Year Return

24.4%

NEE

-6.2%

US Electric Utilities

6.7%

US Market

Return vs Industry: NEE exceeded the US Electric Utilities industry which returned -9.5% over the past year.

Return vs Market: NEE exceeded the US Market which returned 6.1% over the past year.


Shareholder returns

NEEIndustryMarket
7 Day5.4%1.3%2.3%
30 Day1.1%-5.2%1.5%
90 Day5.8%-5.0%17.8%
1 Year27.1%24.4%-3.3%-6.2%9.0%6.7%
3 Year97.4%83.3%4.7%-3.8%36.6%27.7%
5 Year186.3%150.5%37.6%17.3%64.2%46.2%

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?

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEE ($259.6) is trading below our estimate of fair value ($260.48)

Significantly Below Fair Value: NEE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NEE is poor value based on its PE Ratio (35.9x) compared to the US Electric Utilities industry average (19.3x).

PE vs Market: NEE is poor value based on its PE Ratio (35.9x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: NEE is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: NEE is overvalued based on its PB Ratio (3.5x) compared to the US Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is NextEra Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEE's forecast earnings growth (9.6% per year) is above the savings rate (2.2%).

Earnings vs Market: NEE's earnings (9.6% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: NEE's revenue (3.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: NEE's revenue (3.7% 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 (11.7%).


Next Steps

Past Performance

How has NextEra Energy performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEE has high quality earnings.

Growing Profit Margin: NEE's current net profit margins (17.8%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: NEE's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: NEE's earnings growth over the past year (21.4%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: NEE earnings growth over the past year (21.4%) exceeded the Electric Utilities industry 1.8%.


Return on Equity

High ROE: NEE's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is NextEra Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NEE's short term assets ($9.7B) do not cover its short term liabilities ($13.7B).

Long Term Liabilities: NEE's short term assets ($9.7B) do not cover its long term liabilities ($65.8B).


Debt to Equity History and Analysis

Debt Level: NEE's debt to equity ratio (114.7%) is considered high.

Reducing Debt: NEE's debt to equity ratio has reduced from 145.3% to 114.7% over the past 5 years.

Debt Coverage: NEE's debt is not well covered by operating cash flow (17.9%).

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


Balance Sheet


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEE's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: NEE's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (4.69%).


Stability and Growth of Payments

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 (71.1%), 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 (65.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Jim Robo (57yo)

8yrs

Tenure

US$21,877,597

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 ($USD21.88M) is above average for companies of similar size in the US market ($USD11.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Robo
Chairman8yrsUS$21.88m0.061% $77.5m
Rebecca Kujawa
Executive VP of Finance & CFO1.33yrsUS$3.32m0.0021% $2.6m
Charles Sieving
Executive VP & General Counsel11.58yrsUS$4.74m0.0090% $11.5m
John Ketchum
President & CEO of NextEra Energy Resources1.33yrsUS$6.15m0.0044% $5.6m
Eric Silagy
CEO & President of Florida Power and Light Company6.17yrsUS$7.65m0.0083% $10.6m
James May
VP, Controller & Chief Accounting Officer1.33yrsno data0.00031% $393.9k
William Seeley
VP of Compliance & Corporate Secretary6.42yrsno datano data
Mark Hickson
Executive Vice President of Corporate Development3.5yrsno datano data
Deborah Caplan
Executive Vice President of Human Resources & Corporate Services7.25yrsno data0.0066% $8.4m
Joseph Kelliher
Executive Vice President of Federal Regulatory Affairs11.17yrsno data0.0053% $6.7m

6.3yrs

Average Tenure

52yo

Average Age

Experienced Management: NEE's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Robo
Chairman8yrsUS$21.88m0.061% $77.5m
William Swanson
Independent Director10.75yrsUS$351.18k0.0057% $7.2m
Rudy Schupp
Lead Independent Directorno dataUS$326.18k0.0027% $3.5m
Sherry Barrat
Independent Director22.5yrsUS$298.18k0.0054% $6.8m
Toni Jennings
Independent Director13.42yrsUS$312.18k0.0044% $5.6m
Kirk Hachigian
Independent Director6.75yrsUS$314.18k0.0016% $2.1m
Amy Lane
Independent Director5.42yrsUS$313.18k0.00090% $1.1m
John Skolds
Independent Director8yrsUS$322.18k0.0022% $2.8m
James Camaren
Independent Director17.75yrsUS$294.18k0.0074% $9.4m
Kenneth Dunn
Independent Director10yrsUS$316.18k0.0037% $4.7m

10.0yrs

Average Tenure

68.5yo

Average Age

Experienced Board: NEE's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

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$127.061b
  • Shares outstanding: 489.45m
  • 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 4 REP 1 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 wind, solar, nuclear, and fossil fuel, such as coal and natural gas facilities. It also develops, constructs, and operates long-term contracted assets with a focus on renewable generation facilities, natural gas pipelines, and battery storage projects; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2019, the company operated approximately 27,400 megawatts of net generating capacity. It serves approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,400 circuit miles of transmission and distribution lines and 661 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 23:53
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.