NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $170.13B
• Dividend Yield: 2.66%
• Average Volume (3M): 10.25M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.41
• 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: 9,820,743
• 30 Day Avg. Volume: 10,246,349
• 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: 1.51
• Enterprise Value/Revenue: 9.78
• Enterprise Value/Gross Profit: 15.63
• Enterprise Value/Ebitda: 18.75
• 1Y Price Target: $93.06
• Price Target Upside: 13.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 3.68
• Revenue Forecast (FY): $28.26B

• Rating: 73 Outperform
• Price Target: $91.00 ▲(10.79% Upside)

NextEra Energy's strong financial performance and positive earnings call outlook are the most significant factors contributing to its score. The company's strategic investments in renewable energy and infrastructure support its growth narrative. However, high leverage and premium valuation present potential risks. Technical indicators suggest moderate strength, reinforcing a cautiously optimistic view.

Positive Factors

Renewable Energy Expansion

Consistent growth in renewable energy capacity strengthens NextEra's market position and supports long-term revenue growth in a sustainable industry.

Strategic Partnerships

The partnership with Google to recommission a nuclear plant highlights NextEra's strategic initiatives to diversify energy sources and enhance long-term growth.

Strong Cash Flow Generation

Robust cash flow growth ensures financial flexibility, enabling continued investment in infrastructure and strategic initiatives, supporting long-term stability.

Negative Factors

Rising Debt Levels

Increased leverage can strain financial resources, potentially limiting future investment capacity and increasing risk during economic downturns.

Declining Margins

Falling margins may indicate efficiency challenges, which could impact profitability if not addressed, affecting long-term financial health.

Higher Financing Costs

Increased financing costs can reduce net income and limit the ability to fund new projects, impacting future growth and profitability.

NextEra Energy Business Overview & Revenue Model

Company Description

NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company based in Juno Beach, Florida, primarily focused on generating renewable energy from wind and solar sources. With operations extending across North America, NextEra Energy operates through two main segments: Florida Power & Light Company (FPL), which provides electricity to millions of customers in Florida, and NextEra Energy Resources, which is one of the largest producers of renewable energy in the world. The company is committed to advancing sustainable energy solutions and reducing carbon emissions while providing reliable and affordable energy services.

How the Company Makes Money

NextEra Energy generates revenue primarily through the sale of electricity and renewable energy certificates (RECs). The Florida Power & Light Company (FPL) segment earns revenue by providing electric utility services to residential, commercial, and industrial customers, operating under a regulated model where rates are set by the Florida Public Service Commission. The NextEra Energy Resources segment makes money by owning and operating renewable energy facilities, including wind and solar farms, selling electricity generated by these assets to wholesale markets and through long-term power purchase agreements (PPAs) with utilities and other buyers. Additionally, the company benefits from tax incentives and subsidies related to renewable energy production, enhancing its profitability. Strategic partnerships with various stakeholders, including governments and other energy companies, further contribute to its revenue streams.

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	13.72B	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: Positive
• Last Price: 82.14
• 50DMA: Positive
• 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 Positive. The current price of 82.14 is below the 20-day moving average (MA) of 83.53, above the 50-day MA of 77.77, and above the 200-day MA of 71.94, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEE.

NextEra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	75 Outperform	$96.29B	20.25	9.60%	3.39%	4.07%	9.94%
NEE	73 Outperform	$170.13B	25.94	12.48%	2.66%	26.96%	-6.80%
AEP	72 Outperform	$64.39B	17.60	12.85%	3.20%	7.66%	37.42%
EXC	72 Outperform	$46.84B	16.62	10.31%	3.36%	6.07%	15.20%
SO	69 Neutral	$102.11B	23.05	13.06%	2.99%	9.40%	-6.05%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
D	63 Neutral	$50.65B	20.19	9.27%	4.53%	12.72%	4.90%

NextEra Energy Corporate Events

NextEra Energy’s 2024 Risk Factors: Potential Threats to Financial Stability

NextEra Energy Inc. faces potential business risks that could significantly impact its financial health, as outlined in their 2024 Form 10-K. While no new material changes have been reported, the existing risk factors, along with unforeseen uncertainties, pose a threat to the company’s operations and future prospects. Stakeholders should carefully review these risks, as they may affect both NextEra Energy and its subsidiary, Florida Power & Light (FPL). The company acknowledges that additional unknown or currently immaterial risks could also emerge, potentially influencing their business outcomes.

NextEra Energy Reports Strong Q3 2025 Earnings and Strategic Growth

NextEra Energy, Inc. is a leading electric power and energy infrastructure company in North America, primarily operating in the electricity sector with a focus on renewable energy and nuclear power. Headquartered in Juno Beach, Florida, it owns Florida Power & Light Company and NextEra Energy Resources, LLC.

NextEra Energy’s Q3 Earnings Call Highlights Growth

NextEra Energy’s recent earnings call conveyed a positive sentiment, highlighting strong financial performance and substantial investments in renewable energy infrastructure. The recommissioning of the Duane Arnold nuclear plant was celebrated as a significant achievement, despite challenges such as a decline in retail sales and adjustments in project backlogs. The company’s robust growth plans and strategic initiatives are expected to position it well for future success.

NextEra Energy Seeks Approval for New Rate Agreement

On August 20, 2025, Florida Power & Light Company (FPL) and ten intervenor groups filed a joint motion with the Florida Public Service Commission (FPSC) for approval of a stipulation and settlement agreement regarding FPL’s base rate proceeding. The proposed 2025 rate agreement, effective from January 2026 through December 2029, includes new retail base rates, solar and battery base rate adjustments, and a regulatory return on equity framework. It also introduces a rate stabilization mechanism and provisions for storm restoration cost recovery. The agreement aims to establish financial stability and support infrastructure investments, contingent on FPSC approval.

The most recent analyst rating on (NEE) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Completes Remarketing of Series M Debentures

On August 1, 2025, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, completed a remarketing of $2.0 billion of its Series M Debentures, originally issued in September 2022. The interest rate was reset to 4.685% per year, impacting the company’s financial strategy and potentially influencing stakeholder confidence.

The most recent analyst rating on (NEE) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.