NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $148.76B
• Dividend Yield: 2.87%
• Average Volume (3M): 8.75M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.43
• Revenue Growth: 18.80%
• EPS Growth: -6.73%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 1.05
• Shares Outstanding: 2,059,292,500
• 10 Day Avg. Volume: 7,512,526
• 30 Day Avg. Volume: 8,745,724
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 9.44
• Enterprise Value/Gross Profit: 15.23
• Enterprise Value/Ebitda: 17.18
• 1Y Price Target: $80.91
• Price Target Upside: 7.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $81.00 ▲(7.41% Upside)

NextEra Energy's overall stock score reflects its strong financial performance and strategic growth initiatives, particularly in renewable energy. While technical indicators suggest caution, the company's robust earnings and positive outlook support a favorable valuation. Regulatory challenges and interest costs are risks, but the company's strategic positioning and growth potential remain strong.

Positive Factors

Earnings

Second quarter earnings per share and renewables bookings exceeded expectations.

Growth Potential

NEE's renewable business offers plenty of growth ahead, with renewable capacity expected to double by 2025 and NEE expected to invest US$20bn in green hydrogen energy.

Market Position

NextEra is one of the few players that are in perpetual state of construction and safe harboring of projects, which puts the company at an advantage when compared to smaller developers.

Negative Factors

Interest Rates

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

Regulatory Challenges

Regulatory outcomes remain uncertain, with Florida Public Service Commission hearings scheduled, and rising debt levels are a concern.

Tariff Exposure

NEE shares have come under pressure due to concerns surrounding the potential repeal/modification of the IRA and recently tariff-related impacts.

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 strong financial performance with robust profitability margins and effective cash flow management. The company's revenue growth and operational efficiency are commendable, although leverage is higher than average. Overall, the financial profile is solid, supporting a growth-oriented strategy.

Income Statement

NextEra Energy shows a strong financial performance with improving profitability metrics. The Gross Profit Margin for TTM is approximately 66.7%, indicating efficient cost management. The Net Profit Margin is 22.8%, reflecting solid bottom-line performance. Revenue growth is healthy with a TTM growth rate of 4.6% compared to the previous annual report. EBIT and EBITDA margins are robust at 30.8% and 51.6% respectively, showcasing operational efficiency. The company maintains a positive growth trajectory in revenue and earnings, although the net income has slightly decreased in TTM compared to the previous year.

Balance Sheet

NextEra Energy's balance sheet displays a stable financial position. The Debt-to-Equity ratio is relatively high at 0.21, suggesting moderate leverage, which is common in the regulated electric industry. The Return on Equity (ROE) is strong at 11.6%, indicating effective use of equity capital to generate profits. The Equity Ratio stands at 25.6%, reflecting a balanced capital structure. While leverage is noteworthy, it remains within manageable levels for the industry.

Cash Flow

The cash flow statement reveals a resilient cash generation ability. Free Cash Flow has grown significantly by 75.0% from the previous year, driven by strong operating cash inflows. The Operating Cash Flow to Net Income ratio is 2.06, suggesting robust cash conversion from net income. The Free Cash Flow to Net Income ratio is 1.4, highlighting a good level of free cash flow relative to net earnings. The company exhibits strong cash flow management, although capital expenditures remain high, aligning with industry norms.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.90B	24.75B	28.11B	20.96B	17.07B	18.00B
Gross Profit	16.05B	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	5.92B	6.95B	7.31B	4.15B	3.57B	2.92B
Balance Sheet
Total Assets	198.83B	190.14B	177.49B	158.94B	140.91B	127.68B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.49B	2.69B	1.60B	639.00M	1.10B
Total Debt	93.19B	82.33B	73.21B	64.97B	54.83B	48.09B
Total Liabilities	137.90B	129.28B	118.47B	109.50B	95.24B	82.75B
Stockholders Equity	50.80B	50.10B	47.47B	39.23B	37.20B	36.51B
Cash Flow
Free Cash Flow	8.30B	4.75B	1.75B	-1.48B	-277.00M	224.00M
Operating Cash Flow	12.21B	13.26B	11.30B	8.26B	7.55B	7.98B
Investing Cash Flow	-21.68B	-22.26B	-23.47B	-18.36B	-13.59B	-13.70B
Financing Cash Flow	9.36B	7.00B	12.15B	12.23B	5.81B	6.17B

NextEra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 75.41 is above the 20-day moving average (MA) of 72.38, above the 50-day MA of 72.71, and above the 200-day MA of 71.02, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, 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
EXC	76 Outperform	$45.10B	16.95	9.87%	3.54%	4.46%	8.68%
AEP	74 Outperform	$60.36B	16.53	13.03%	3.32%	5.84%	36.33%
NEE	73 Outperform	$148.76B	25.17	11.84%	2.87%	18.80%	-6.73%
D	72 Outperform	$52.21B	21.14	9.29%	4.37%	7.60%	55.99%
SO	71 Outperform	$103.61B	24.32	12.89%	3.08%	8.53%	-7.53%
Sector *	66 Neutral	$17.90B	18.75	8.12%	3.41%	7.32%	12.01%
DUK	66 Neutral	$96.63B	20.32	9.60%	3.43%	4.07%	9.94%

NextEra Energy Corporate Events

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.

NextEra Energy Sells Debentures to Strengthen Capital

On June 12, 2025, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, sold C$600 million in 3.83% Debentures due 2030 and C$1.4 billion in 4.67% Debentures due 2035, both guaranteed by NextEra Energy, Inc. This transaction, registered under the Securities Act of 1933, reflects the company’s strategic financial maneuvers to strengthen its capital structure and support its ongoing operations and growth in the renewable energy sector.

The most recent analyst rating on (NEE) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Shareholders Approve Key Proposals

On May 22, 2025, NextEra Energy, Inc. held its Annual Meeting of Shareholders, where three proposals were approved. Shareholders elected twelve nominees to the Board for a one-year term, ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and approved the compensation of named executive officers by a non-binding advisory vote. These decisions reflect shareholder confidence in the company’s leadership and strategic direction, potentially impacting its governance and operational strategies.

The most recent analyst rating on (NEE) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Secures $875M Through Debenture Sale

On May 15, 2025, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, sold $875 million of Series U Junior Subordinated Debentures due in 2085, with an interest rate of 6.50% per annum. This financial move, registered under the Securities Act of 1933, provides the company with long-term capital and reflects its strategic financial management, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (NEE) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.