Education
About Us
Working with TipRanks
Follow Us
NextEra Energy Inc. (NEE)
NYSE:NEE
Top Page
NextEra Energy
(NYSE:NEE)67Neutral
Positive Factors
Renewable Energy Expansion
The renewable business offers plenty of growth ahead, with renewable capacity expected to double by 2025 and significant investment in green hydrogen energy.
Strategic Partnerships
The announcement of the partnership agreement with GE Vernova to operate dispatchable generation is also a positive.
Negative Factors
Policy Challenges
Policy headwinds continue to impact sentiment and pose volatility in the share price.
NextEra Energy (NEE) vs. S&P 500 (SPY)
Market Cap
$145.74B
Dividend Yield2.95%
Average Volume (3M)11.87M
Price to Earnings (P/E)21.0
Beta (1Y)0.45
Revenue Growth26.91%
EPS Growth-6.43%
CountryUS
Employees9,300
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)3.37
Shares Outstanding2,057,026,400
10 Day Avg. Volume11,632,715
30 Day Avg. Volume11,874,306
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.95
Price to Cash Flow (P/CF)18.60
P/FCF Ratio18.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$86.06Price Target Upside21.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
NextEra Energy Business Overview & Revenue Model
Company DescriptionNextEra Energy, Inc. (NEE) is a leading clean energy company headquartered in Juno Beach, Florida. It operates through its subsidiaries, primarily Florida Power & Light (FPL) and NextEra Energy Resources. FPL is the largest rate-regulated electric utility in the United States, serving more than 5 million customer accounts across Florida. NextEra Energy Resources is a global leader in renewable energy, focusing on the development, construction, and operation of wind, solar, and energy storage projects. The company is committed to sustainability and innovation, aiming to provide affordable and reliable energy while minimizing environmental impact.
How the Company Makes MoneyNextEra Energy makes money primarily through its two main subsidiaries, Florida Power & Light (FPL) and NextEra Energy Resources. FPL generates revenue by providing electricity to residential, commercial, and industrial customers in Florida. It operates under a regulated utility model, meaning its rates are set and approved by regulatory bodies, providing a stable and predictable revenue stream. NextEra Energy Resources generates revenue by developing, constructing, and operating renewable energy projects, including wind, solar, and battery storage, across North America and beyond. This subsidiary sells the electricity generated from these projects through long-term power purchase agreements (PPAs) to utility companies and other large power consumers. Additionally, NextEra Energy benefits from federal and state incentives and tax credits for renewable energy projects, which enhance its profitability. The company's focus on clean energy and strategic investments in renewable technologies are key factors contributing to its earnings growth.
NextEra Energy Financial Statement Overview
Summary
NextEra Energy is performing well across its financial statements with strong profitability, solid cash flow management, and a robust equity base. However, the high leverage could pose risks if not managed carefully.Income Statement
NextEra Energy shows strong profitability with a consistent gross profit margin, indicating efficient cost management. The net profit margin has improved over the years, reflecting gains in operational effectiveness. Revenue growth has been volatile but shows an overall positive trajectory. The EBIT and EBITDA margins are robust, supporting healthy operational performance.70
Positive
Balance Sheet
The company has a solid equity base, but the debt-to-equity ratio is relatively high, signaling potential leverage risks. Return on Equity (ROE) has improved, indicating enhanced shareholder value. The equity ratio suggests a balanced asset structure, but there are potential concerns regarding high liabilities.65
Positive
Cash Flow
Operating cash flow is strong relative to net income, showing effective cash generation. Free cash flow has been variable but demonstrates recent improvement. The company effectively manages cash flows, though capital expenditures and financing activities present some volatility.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.02B | 28.11B | 20.96B | 17.07B | 18.00B | Gross Profit |
| 17.02B | 17.98B | 10.14B | 8.59B | 10.71B | EBIT |
| 6.49B | 10.24B | 4.08B | 3.89B | 3.70B | EBITDA |
| 7.16B | 16.76B | 10.36B | 8.82B | 8.23B | Net Income Common Stockholders |
| 4.54B | 7.31B | 3.25B | 2.83B | 2.92B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.49B | 2.69B | 1.60B | 639.00M | 1.10B | Total Assets |
| 190.14B | 177.49B | 158.94B | 140.91B | 127.68B | Total Debt |
| 9.95B | 73.21B | 64.97B | 54.83B | 48.09B | Net Debt |
| 8.46B | 70.52B | 63.37B | 54.19B | 46.99B | Total Liabilities |
| 129.28B | 118.47B | 109.50B | 95.49B | 82.75B | Stockholders Equity |
| 50.10B | 47.47B | 39.23B | 37.20B | 36.51B |
| Cash Flow | Free Cash Flow | |||
| 4.75B | 1.75B | -1.48B | -277.00M | 224.00M | Operating Cash Flow |
| 13.26B | 11.30B | 8.26B | 7.55B | 7.98B | Investing Cash Flow |
| -22.26B | -23.47B | -18.36B | -13.59B | -13.70B | Financing Cash Flow |
| 7.00B | 12.15B | 12.23B | 5.81B | 6.17B |
NextEra Energy Technical Analysis
Positive
70.85
Price Trends
69.91
Positive
73.53
Negative
74.70
Negative
Market Momentum
0.16
Negative
53.69
Neutral
65.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Positive. The current price of 70.85 is above the 20-day moving average (MA) of 69.37, above the 50-day MA of 69.91, and below the 200-day MA of 74.70, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 51 risk factors in its most recent earnings report. NextEra Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NextEra Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
72 Outperform | $43.91B | 17.81 | 9.14% | 3.46% | 5.98% | 4.99% | |
69 Neutral | $40.24B | 20.37 | 9.92% | 3.04% | -5.25% | 7.11% | |
67 Neutral | $145.74B | 21.00 | 9.07% | 2.95% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
NEE
NextEra Energy
70.48
16.47
30.49%
AEP
American Electric Power
105.24
24.43
30.23%
DUK
Duke Energy
116.41
25.84
28.53%
EXC
Exelon
43.68
8.43
23.91%
SO
Southern Co
89.89
23.61
35.62%
XEL
Xcel Energy
70.03
23.38
50.12%
NextEra Energy Earnings Call Summary
Earnings Call Date: Jan 24, 2025 | % Change Since: 3.19% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant highlights in financial performance, record renewables origination, and strategic partnerships. Despite some challenges with decreased contributions from the gas infrastructure business and higher interest costs, the company's robust growth and investment plans indicate a promising outlook.Highlights
Strong Financial Performance
NextEra Energy delivered full year adjusted earnings per share of $3.43, up over 8% from 2023. The company achieved a compound annual growth rate in adjusted EPS of over 10% since 2021.
Record Renewables and Storage Origination
Energy Resources added more than 12 gigawatts to its backlog, a 30% increase from 2023, marking the best year ever for origination.
FPL's Operational Efficiency
FPL improved its best-in-class nonfuel O&M cost per customer, saving customers over $3 billion per year versus an average performing utility.
Investment in Energy Infrastructure
NextEra Energy plans to invest roughly $120 billion across the country over the next 4 years, expanding its fleet to roughly 121 gigawatts.
Partnership with GE Renova
NextEra Energy announced a framework agreement with GE Renova to build natural gas power generation solutions, supporting multiple gigawatts for data centers and other sectors.
Lowlights
Gas Infrastructure Business Decrease
Contributions from the gas infrastructure business decreased by $0.08 per share due to higher depletion expense and lower production.
Increased Interest Costs
Higher interest costs decreased results by $0.13 per share, reflecting new borrowing to support growth and increased borrowing costs on existing debt.
Company Guidance
During the NextEra Energy (NEE) Q4 2024 earnings call, the company provided a robust set of metrics and forward guidance. The call highlighted a 2024 full-year adjusted earnings per share of $3.43, marking an increase of over 8% from 2023 and positioning it at the high end of their expectations. Since 2021, NextEra has achieved a compound annual growth of over 10% in adjusted EPS, leading the top 10 power companies. The company plans to invest approximately $120 billion over the next four years, which will expand its combined fleet to roughly 121 gigawatts. For Florida Power & Light (FPL), the adjusted earnings per share increased by $0.12 due to a 10% growth in regulatory capital employed, with capital expenditures totaling approximately $8.2 billion for the year. Energy Resources reported a 13% increase in adjusted earnings year-over-year, with more than 12 gigawatts of new renewables and storage projects added to its backlog. The company remains committed to delivering financial results at the top end of its adjusted EPS expectation ranges for 2025-2027, while planning to grow dividends per share by 10% annually through at least 2026.NextEra Energy Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
NextEra Energy Plans Rate Changes and Solar Projects
Neutral
Dec 30, 2024
Florida Power & Light Company has informed the Florida Public Service Commission of its plan to begin a base rate proceeding in 2025, aiming to implement a new four-year rate plan starting in 2026. The plan includes a significant increase in annual revenue requirements and proposals to fund solar and battery projects, potentially impacting the company’s financial operations and stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.