NEE NextEra Energy, Inc. - Fundamental Analysis
BULLISH
NEE Stock | Fundamental Analysis & Investment Insights
NYSE
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Utilities
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Utilities - Regulated Electric
Current Price
$83.88
Analyst Target
$91.05
+8.5% Upside
52W High
$87.53
52W Low
$61.72
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
NextEra Energy (NEE) presents a compelling long-term investment case supported by robust earnings growth, industry-leading scale, and a dominant position in renewable energy infrastructure. Despite a premium valuation (P/E 26.63, Forward P/E 22.79), the company's strong profitability (Operating Margin 30.77%, ROIC implied strong), accelerating EPS growth (YoY +9.7%, Q/Q +15.3%), and favorable analyst target ($91.05) suggest continued outperformance. The 2.7% dividend yield with a sustainable 70.3% payout ratio adds income appeal in a low-growth sector, while insider selling remains a minor concern but not alarming given executive compensation structures. Price momentum is solid with a 1Y return of +14.9%, though near-term consolidation is evident with a -2.2% 6M pullback from the 52-week high of $87.53.
Key Strengths
Industry-leading scale with $174.92B market cap, the largest regulated electric utility in the U.S.
Exceptional profitability: 30.77% operating margin and 24.73% net margin, significantly above sector averages
Strong earnings momentum: 31.1% YoY earnings growth and consistent quarterly beats (22 of last 25 quarters beat estimates)
Dominant position in renewable energy (wind/solar) and transmission infrastructure, benefiting from federal clean energy tailwinds
Attractive dividend profile: 2.7% yield with disciplined 70.3% payout ratio, supporting long-term sustainability
Key Risks
Elevated valuation: P/E of 26.63 and Price/Sales of 6.65 are rich for a utility, leaving limited margin of safety
High leverage: Debt/Equity of 1.44 is above sector median, increasing interest rate and refinancing risk
Weak liquidity: Current ratio of 0.55 and quick ratio of 0.36 indicate tight short-term financial flexibility
Insider selling pressure: 7 sell transactions in last 6 months, including CFO selling $1M+, signaling potential caution
Regulatory risk exposure: As a regulated utility, earnings are subject to state commission approvals and rate case outcomes
AI Fair Value Estimate
Based on comprehensive analysis
$91.05
+8.5% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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