NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $165.65B
• Dividend Yield: 2.85%
• Average Volume (3M): 10.52M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.37
• Revenue Growth: 26.96%
• EPS Growth: -6.80%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.13
• Shares Outstanding: 2,082,609,600
• 10 Day Avg. Volume: 12,852,738
• 30 Day Avg. Volume: 10,524,669
• PEG Ratio: -3.33
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 5.96
• P/FCF Ratio: 31.07
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 9.78
• Enterprise Value/Gross Profit: 15.63
• Enterprise Value/Ebitda: 18.08
• 1Y Price Target: $92.25
• Price Target Upside: 15.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 3.68
• Revenue Forecast (FY): $28.29B

• Rating: 71 Outperform
• Price Target: $89.00 ▲(11.89% Upside)

NextEra Energy's overall stock score is driven by a strong earnings call and strategic corporate events, indicating robust growth plans and financial stability. However, technical analysis suggests potential bearish momentum, and the valuation indicates the stock may be overvalued. Financial performance is solid but shows some areas of concern, such as increasing leverage.

Positive Factors

Renewable Energy Growth

Consistent growth in renewable energy capacity strengthens NextEra's market position in clean energy, supporting long-term sustainability and competitive advantage.

Strategic Partnerships

The partnership with Google Cloud enhances technological innovation and infrastructure development, positioning NextEra for future growth in the energy sector.

Investment in Infrastructure

Significant investment in energy infrastructure, including solar and battery storage, supports long-term growth and reliability, enhancing market competitiveness.

Negative Factors

Increasing Leverage

Higher leverage can pose financial risks, potentially impacting cash flow and limiting financial flexibility, which may affect long-term stability.

Declining Margins

Declining margins suggest potential efficiency challenges, which could impact profitability and operational performance over the long term.

Higher Financing Costs

Increased financing costs can reduce net income and strain financial resources, potentially affecting future investment and growth opportunities.

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 generates revenue through several key streams. The Florida Power & Light Company segment earns money primarily by providing utility services to residential, commercial, and industrial customers in Florida, charging them for electricity consumption. This segment benefits from a regulated rate structure, allowing it to earn a return on investment for infrastructure improvements approved by state regulators. The NextEra Energy Resources segment makes money by developing, owning, and operating renewable energy projects, including wind and solar farms, which sell electricity to utilities and other customers under long-term power purchase agreements (PPAs). Additionally, NextEra Energy benefits from tax incentives and credits associated with renewable energy production, further enhancing its profitability. Strategic partnerships and investments in innovative technologies also play a significant role in driving revenue growth and expanding its market presence.

NextEra Energy Financial Statement Overview

Summary

NextEra Energy demonstrates a robust financial position with consistent revenue growth and strong profitability. However, increasing leverage and declining EBIT and EBITDA margins could be areas of concern. The company maintains healthy cash flow metrics, supporting its operational and financial stability.

Income Statement

NextEra Energy shows a solid performance with a stable gross profit margin and a strong net profit margin of 24.72% in the TTM. Revenue growth is modest at 1.54%, indicating steady expansion. However, there is a noticeable decline in EBIT and EBITDA margins compared to previous years, suggesting potential efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.78, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is healthy at 12.69%, but the equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Free cash flow growth is strong at 21.92%, showing improved cash generation capabilities. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio of 0.85 suggests that a significant portion of earnings is being converted into free cash flow, which is positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.30B	24.75B	28.11B	20.96B	17.07B	18.00B
Gross Profit	16.46B	14.87B	17.98B	10.14B	8.56B	10.71B
EBITDA	14.23B	14.03B	16.76B	9.21B	8.66B	8.68B
Net Income	6.50B	6.95B	7.31B	4.15B	3.57B	2.92B
Balance Sheet
Total Assets	204.35B	190.14B	177.49B	158.94B	140.91B	127.68B
Cash, Cash Equivalents and Short-Term Investments	3.24B	1.49B	2.69B	1.60B	639.00M	1.10B
Total Debt	96.71B	82.33B	73.21B	64.97B	54.83B	48.09B
Total Liabilities	139.76B	129.28B	118.47B	109.50B	95.24B	82.75B
Stockholders Equity	54.18B	50.10B	47.47B	39.23B	37.20B	36.51B
Cash Flow
Free Cash Flow	7.64B	4.75B	1.75B	-1.48B	-277.00M	224.00M
Operating Cash Flow	11.97B	13.26B	11.30B	8.26B	7.55B	7.98B
Investing Cash Flow	-22.53B	-22.26B	-23.47B	-18.36B	-13.59B	-13.70B
Financing Cash Flow	10.72B	7.00B	12.15B	12.23B	5.81B	6.17B

NextEra Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79.54
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Neutral. The current price of 79.54 is below the 20-day moving average (MA) of 82.65, below the 50-day MA of 83.04, and above the 200-day MA of 73.76, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 18.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEE.

NextEra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEE	71 Outperform	$165.65B	25.26	12.48%	2.85%	26.96%	-6.80%
DUK	70 Outperform	$89.87B	18.17	9.92%	3.65%	4.80%	14.44%
AEP	69 Neutral	$61.15B	16.75	12.85%	3.27%	7.66%	37.42%
SO	68 Neutral	$93.90B	21.20	13.06%	3.45%	9.40%	-6.05%
EXC	67 Neutral	$44.11B	15.63	10.31%	3.67%	6.07%	15.20%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
D	63 Neutral	$50.75B	20.22	9.27%	4.49%	12.72%	4.90%

NextEra Energy Corporate Events

NextEra Energy Updates Earnings and Growth Targets

At the 2025 Investor Conference held on December 8, 2025, in New York, NextEra Energy announced updates to its adjusted earnings per share expectations, tightening the 2025 range and increasing the 2026 range. The company also extended its growth expectations through 2032 and set a long-term growth target through 2035. Additionally, NextEra Energy outlined its dividend per share growth expectations for 2027 and 2028. These updates reflect the company’s strategic focus on sustained growth and shareholder returns, with implications for its market positioning and stakeholder interests.

NextEra Energy Subsidiary Sells $1.8 Billion in Bonds

On December 5, 2025, Florida Power & Light Company, a subsidiary of NextEra Energy, completed the sale of $650 million in 4.70% First Mortgage Bonds due in 2036 and $1,150 million in 5.60% First Mortgage Bonds due in 2066. This transaction is part of the company’s financial strategy to secure long-term funding, potentially impacting its financial stability and market position.

NextEra Energy’s FPL Settlement Approved by Regulators

On November 20, 2025, the Florida Public Service Commission approved a settlement agreement between Florida Power & Light Company (FPL) and several intervenor groups regarding FPL’s base rate proceeding. The agreement, effective from January 2026 to December 2029, includes new retail base rates resulting in significant revenue increases, provisions for solar and battery projects, and a regulatory return on equity mechanism. This settlement is expected to impact FPL’s financial operations, allowing for adjustments in response to economic needs and regulatory changes, while also addressing future storm restoration costs and potential tax changes.

NextEra Energy Secures €2.5 Billion in Debentures

On November 12, 2025, NextEra Energy Capital Holdings, Inc., a subsidiary of NextEra Energy, Inc., successfully sold €2.5 billion in junior subordinated debentures, divided equally between Series V and Series W, both due in 2056. This strategic financial move, with interest rates set to reset periodically, underscores the company’s efforts to secure long-term funding, potentially enhancing its financial stability and market competitiveness.