NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $139.12B
• Dividend Yield: 3.29%
• Average Volume (3M): 12.46M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.40
• Revenue Growth: 26.91%
• EPS Growth: -6.43%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Electric
• EPS (TTM): 3.37
• Shares Outstanding: 2,058,580,800
• 10 Day Avg. Volume: 12,466,749
• 30 Day Avg. Volume: 12,457,557
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.89
• Price to Cash Flow (P/CF): 18.40
• P/FCF Ratio: 18.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $87.08
• Price Target Upside: 28.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

NextEra Energy's strong financial performance, strategic investments, and positive earnings call contribute significantly to its high score. While technical analysis presents mixed signals, the company's robust growth outlook and reasonable valuation support a favorable overall assessment.

Positive Factors

Cost Efficiency

Best-in-class operations and maintenance, achieving continuous cost savings through technology innovation and digitalisation, allows NEE to offer low-cost clean energy.

Renewable Energy Growth

NextEra's renewable business offers plenty of growth ahead, with renewable capacity expected to double 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

Interest Rate Impact

Rising interest rates could pose challenges on its expansion plans and lower its returns.

Policy Challenges

Policy headwinds continue to impact sentiment and pose volatility in the share price.

Regulatory Uncertainty

The new Administration's executive order on pausing onshore wind leases on federal lands is seen as a precursor to IRA repeal.

NextEra Energy Business Overview & Revenue Model

Company Description

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, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. The company was founded in 1925 and is headquartered in Juno Beach, Florida.

How the Company Makes Money

NextEra 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 demonstrates strong profitability and effective cash flow management. While the high leverage presents potential risks, the company maintains a robust equity base and steady growth.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 67.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Negative. The current price of 67.58 is below the 20-day moving average (MA) of 69.93, below the 50-day MA of 70.10, and below the 200-day MA of 74.29, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 63.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEE.

NextEra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	77 Outperform	$90.80B	20.56	9.10%	3.59%	4.46%	54.09%
SO	77 Outperform	$96.30B	21.99	13.61%	3.31%	5.83%	10.23%
AEP	73 Outperform	$56.96B	18.33	11.37%	3.57%	2.76%	31.53%
NEE	72 Outperform	$139.12B	20.03	14.24%	3.29%	26.91%	-6.43%
EXC	72 Outperform	$44.72B	18.06	9.34%	3.46%	5.98%	4.99%
D	69 Neutral	$43.32B	20.85	7.91%	5.38%	-10.79%	18.04%
Sector *	65 Neutral	$11.76B	15.57	6.23%	4.62%	5.52%	-8.96%

NextEra Energy Corporate Events

NextEra Energy Announces Leadership Transition in 2025

On March 12, 2025, Rebecca Kujawa, CEO of NextEra Energy Resources, announced her retirement effective May 22, 2025, as part of a planned leadership succession. In response, Brian W. Bolster will become the new CEO of NEER, while other key leadership changes include James M. May and Michael H. Dunne taking on new roles within the company. These changes are part of a strategic plan to ensure a smooth transition and continued leadership in the renewable energy sector. The appointments also come with approved compensation adjustments for the executives involved, reflecting their new responsibilities.