NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $147.56B
• Dividend Yield: 3.12%
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.45
• Revenue Growth: 18.80%
• EPS Growth: -6.73%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 62
• Industry: Regulated Electric
• EPS (TTM): 1.05
• Shares Outstanding: 2,082,092,500
• 10 Day Avg. Volume: 9,496,683
• 30 Day Avg. Volume: 9,467,785
• 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: 1.66
• Enterprise Value/Revenue: 9.44
• Enterprise Value/Gross Profit: 15.23
• Enterprise Value/Ebitda: 17.18
• 1Y Price Target: $86.20
• Price Target Upside: 21.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $80.00 ▲(12.83% Upside)

NextEra Energy's overall stock score reflects its strong financial performance and positive earnings outlook. The company's strategic initiatives and robust project backlog support future growth. However, technical indicators suggest some short-term weakness, and valuation metrics indicate a premium pricing. Regulatory challenges and interest costs pose risks, but the company's confidence in achieving long-term financial goals and dividend growth remains a positive factor.

Positive Factors

Financial Stability

The company's 59.6% equity ratio would remain unchanged, reflecting stability in its financial structure.

Growth Outlook

The proposed settlement is seen as constructive for NextEra Energy as it provides a clearer path for capital expenditures and earnings through 2029.

Settlement Impact

The settlement proposed by FPL allows NEE to continue to accommodate growth in Florida without adjusting base rates in years 3 and 4 of the rate case period via the rate stabilization mechanism and SoBRA.

Negative Factors

Consumer Sentiment

The settlement results in an average customer bill increase of 2% through 2030, which may impact consumer sentiment.

Regulatory Uncertainty

Given this filing is unprecedented in Florida, it will contribute to minor regulatory uncertainty on the rate case outcome.

Revenue Reduction

The intervenors' rate increase proposal is lower at $1.27 billion compared to FPL's proposed $1.65 billion for 2026 and 2027.

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 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 shows consistent revenue growth, although net income has slightly decreased recently. The balance sheet is stable with moderate leverage typical for the industry.

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: Negative
• Last Price: 70.90
• 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 Negative. The current price of 70.9 is below the 20-day moving average (MA) of 73.19, below the 50-day MA of 72.69, and above the 200-day MA of 70.39, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 9.01 is Positive, 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
D	75 Outperform	$50.17B	20.36	9.29%	4.59%	7.60%	55.99%
AEP	74 Outperform	$58.88B	16.13	13.03%	3.44%	5.84%	36.33%
DUK	73 Outperform	$93.99B	19.86	9.60%	3.47%	4.07%	9.94%
EXC	73 Outperform	$43.80B	16.46	9.87%	3.64%	4.46%	8.68%
NEE	72 Outperform	$147.56B	24.96	11.84%	3.12%	18.80%	-6.73%
Sector *	66 Neutral	$17.25B	17.99	5.54%	3.64%	6.63%	11.55%
SO	65 Neutral	$101.30B	23.78	12.89%	3.18%	8.53%	-7.53%

NextEra Energy Corporate Events

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.

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.

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.