NEE NextEra Energy, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
NEE trades at a substantial premium to regulated utility peers due to its growth profile, but the valuation leaves limited room for multiple expansion and increases sensitivity to rate hikes or growth deceleration.
- Forward P/E of 22.79 is more reasonable than current 26.63, reflecting growth expectations
- EV/EBITDA and other enterprise metrics unavailable but implied premium justified by growth
- Current P/E of 26.63 is significantly above utilities sector median (~18-20x)
- Price/Sales of 6.65 is extremely high for a utility, indicating overvaluation risk
With robust revenue and earnings growth trajectories, strong policy tailwinds, and positive price momentum over 1Y (+14.9%), NEE is well-positioned for continued outperformance, though near-term price action has softened (-2.2% over 6M).
- 31.1% YoY earnings growth and 15.3% Q/Q EPS growth signal strong momentum
- Expansive renewable energy pipeline and transmission investments align with national decarbonization trends
- Forward P/E compression risk if growth slows below 10%
- Capital intensity may limit free cash flow growth despite earnings strength
NEE has demonstrated exceptional earnings consistency and margin strength over the past six years, with only rare misses, and has delivered solid 5Y and 1Y share price gains, outperforming the typically low-growth utilities sector.
- Consistent earnings outperformance: 22 of last 25 quarters beat estimates, with average surprise of +5.5%
- Stable and expanding margins: Gross margin 62.04%, operating margin 30.77%, indicating pricing power and cost control
- One earnings miss in last four quarters (Q3 2025: -4.4%) raises minor concern on consistency
- 5Y return of +22.4% lags broader market, though outperforms utility sector average
While NEE’s long-term financial health is supported by stable regulated earnings, its elevated leverage and weak liquidity ratios are above peer averages and warrant monitoring, especially amid higher interest rates.
- High operating cash flow generation implied by strong operating margin and scale
- Debt levels manageable given regulated asset base and stable cash flows
- Debt/Equity of 1.44 is high for a utility, increasing financial risk in rising rate environments
- Current ratio of 0.55 and quick ratio of 0.36 indicate strained short-term liquidity
NEE offers a competitive and well-covered dividend yield, typical of a mature utility, with a payout ratio that allows room for growth while funding reinvestment in clean energy infrastructure.
- 2.7% dividend yield is attractive relative to sector and inflation
- 70.3% payout ratio is sustainable given earnings stability and growth
- No data on dividend growth history or streak, limiting visibility on policy consistency
- Dividend sustainability could be pressured if earnings growth slows or capex increases
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for NEE and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
NEE
NextEra Energy, Inc.
Primary
|
+22.4% | +10.2% | +14.9% | +13.6% | -2.2% | -0.1% |
|
SO
The Southern Company
Peer
|
+69.5% | +53.9% | +8.0% | +3.9% | -9.1% | -0.8% |
|
DUK
Duke Energy Corporation
Peer
|
+57.1% | +43.7% | +16.0% | +7.4% | -3.8% | +0.1% |
|
AEP
American Electric Power Company, Inc.
Peer
|
+63.3% | +52.4% | +33.9% | +19.6% | +3.1% | +0.7% |
|
SRE
Sempra
Peer
|
+59.5% | +30.4% | +5.0% | +20.4% | -0.3% | -1.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Utilities Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
NEE
NextEra Energy, Inc.
|
BULLISH | $174.92B | 26.63 | 8.2% | 24.7% | $83.88 | |
|
SO
The Southern Company
|
NEUTRAL | $100.39B | 22.56 | 11.4% | 15.4% | $90.69 | |
|
DUK
Duke Energy Corporation
|
NEUTRAL | $96.11B | 19.35 | 9.9% | 16.0% | $122.71 | |
|
AEP
American Electric Power...
|
BULLISH | $64.88B | 17.76 | 12.9% | 17.2% | $121.3 | |
|
SRE
Sempra
|
NEUTRAL | $60.19B | 28.31 | 6.8% | 15.8% | $92.0 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-03 | SIEVING CHARLES E | Officer | Sale | 11,336 | $906,880 |
| 2025-10-01 | LEMASNEY MARK | Officer | Sale | 808 | $62,943 |
| 2025-09-25 | LEMASNEY MARK | Officer | Sale | 846 | $63,365 |
| 2025-09-12 | LEMASNEY MARK | Officer | Sale | 846 | $60,827 |
| 2025-09-08 | DUNNE MICHAEL | Chief Financial Officer | Sale | 10,000 | $707,900 |
| 2025-07-28 | COFFEY ROBERT | Officer | Sale | 7,500 | $538,800 |
| 2025-07-22 | MAY JAMES MICHAEL | Officer and Treasurer | Sale | 2,177 | $168,718 |
Wall Street Analysts
Professional analyst ratings and price targets