NextEra Energy, Inc. Fundamental Analysis (NYSE: NEE-PN)
NextEra Energy, Inc. (NYSE: NEE-PN) shows strong financial fundamentals with a PE ratio of 14.70, profit margin of 39.92%, and ROE of 20.37%. The company generates $89.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEE-PN's fundamental strength across five key dimensions:
Efficiency Score
WeakNEE-PN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNEE-PN trades at attractive valuation levels.
Growth Score
ModerateNEE-PN shows steady but slowing expansion.
Financial Health Score
WeakNEE-PN carries high financial risk with limited liquidity.
Profitability Score
ModerateNEE-PN maintains healthy but balanced margins.
Key Financial Metrics
Is NEE-PN Expensive or Cheap?
P/E Ratio
NEE-PN trades at 14.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NEE-PN's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values NextEra Energy, Inc. at 2.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.69 times EBITDA. This is generally considered low.
How Well Does NEE-PN Make Money?
Net Profit Margin
For every $100 in sales, NextEra Energy, Inc. keeps $39.92 as profit after all expenses.
Operating Margin
Core operations generate 29.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.37 in profit for every $100 of shareholder equity.
ROA
NextEra Energy, Inc. generates $4.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NextEra Energy, Inc. generates strong operating cash flow of $45.57B, reflecting robust business health.
Free Cash Flow
NextEra Energy, Inc. generates weak or negative free cash flow of $-4.97B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.77 in free cash annually.
FCF Yield
NEE-PN converts -0.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How NEE-PN Stacks Against Its Sector Peers
| Metric | NEE-PN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.70 | 19.21 | Better (Cheaper) |
| ROE | 20.37% | 1000.00% | Weak |
| Net Margin | 39.92% | -520.00% (disorted) | Strong |
| Debt/Equity | 1.85 | 1.77 | Neutral |
| Current Ratio | 0.53 | 1.85 | Weak Liquidity |
| ROA | 4.75% | 527.00% | Weak |
NEE-PN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NextEra Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income