NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $152.01B
• Dividend Yield: 3.07%
• Average Volume (3M): 13.10M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.47
• Revenue Growth: 20.35%
• EPS Growth: -27.07%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 0.99
• Shares Outstanding: 2,058,631,000
• 10 Day Avg. Volume: 11,030,661
• 30 Day Avg. Volume: 13,102,967
• PEG Ratio: 3.48
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -111.43
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 12.89
• Enterprise Value/Ebitda: 4.20
• 1Y Price Target: $78.73
• Price Target Upside: 5.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: $85.00 ▲(13.67%Upside)

NextEra Energy's overall stock score of 79 reflects strong financial performance and positive earnings call sentiment, supported by strategic investments in renewables and effective management of financial resources. While technical indicators show upward momentum, the valuation suggests moderate growth expectations, and corporate events reaffirm strategic direction.

Positive Factors

Financial Performance

NEE has demonstrated an excellent track record to weather through cycles, delivering 10% adjusted EPS CAGR over the past 10 years.

Project Development

Renewable project signings beat expectations, supported by strong solar project bookings and no sign of a storage slowdown yet.

Renewable Energy Growth

NEE's renewable business offers plenty of growth ahead, with renewable capacity expected to double and significant investment in green hydrogen energy.

Negative Factors

Interest Rates

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

Policy Risks

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

Regulatory Uncertainty

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

NextEra Energy Business Overview & Revenue Model

Company Description

NextEra Energy, Inc. (NEE) is a leading clean energy company based in Juno Beach, Florida. It operates through two primary subsidiaries: Florida Power & Light Company (FPL) and NextEra Energy Resources, LLC. FPL is the largest rate-regulated electric utility in Florida, serving more than 5 million customer accounts, while NextEra Energy Resources is a leader in renewable energy, particularly in wind and solar power generation, across North America. The company's core mission is to drive the transition to sustainable energy through innovation and investment in clean energy solutions.

How the Company Makes Money

NextEra Energy makes money primarily through its two subsidiaries. Florida Power & Light Company generates revenue by providing electricity to retail and wholesale customers in Florida, operating under a rate-regulated model that ensures a stable income. This involves charging customers for electricity consumption based on rates approved by regulatory bodies. NextEra Energy Resources, on the other hand, earns revenue by developing, constructing, and operating renewable energy projects, particularly wind and solar farms. This subsidiary also engages in power purchase agreements (PPAs) with utilities and other entities, selling the electricity generated from these renewable sources. Additionally, NextEra Energy benefits from federal and state incentives for renewable energy production and investment, which enhance its profitability. The company's strategic investments in energy storage and infrastructure further contribute to its revenue streams.

NextEra Energy Financial Statement Overview

Summary

NextEra Energy demonstrates solid financial performance with strong revenue growth and effective cost management. The company's stable capital structure and strong cash flows support future investments. However, net income volatility and high liabilities are areas to monitor.

Income Statement

NextEra Energy's income statement shows robust profitability with a consistent increase in EBIT and EBITDA margins, both above 30% for the TTM. Gross profit margins have remained strong, indicating effective cost management. However, net income has slightly decreased in the TTM compared to the previous year due to increased expenses, which impacts the net profit margin. Despite this, the revenue growth rate remains healthy, signaling positive growth trends.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of approximately 0.20, showing prudent leverage. The equity ratio indicates a well-capitalized structure with stockholders' equity making up a significant portion of total assets. Return on equity is strong, supporting profitability. However, the high total liabilities remain a potential risk factor that needs monitoring.

Cash Flow

Cash flow analysis reveals strong operational cash flows exceeding net income, a positive indicator of financial health. Free cash flow growth is robust, supporting future investments and dividend payments. The company's ability to generate cash from operations is impressive, although high capital expenditures limit free cash flow growth potential.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.27B	24.75B	28.11B	20.96B	17.07B	18.00B
	Gross Profit
17.71B	14.87B	17.98B	10.14B	8.59B	10.71B
	EBIT
7.72B	7.48B	10.24B	4.08B	3.89B	3.70B
	EBITDA
10.19B	14.03B	16.76B	10.36B	8.82B	8.23B
	Net Income Common Stockholders
5.51B	6.95B	7.31B	3.25B	2.83B	2.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42B	1.49B	2.69B	1.60B	639.00M	1.10B
	Total Assets
194.26B	190.14B	177.49B	158.94B	140.91B	127.68B
	Total Debt
89.68B	82.33B	73.21B	64.97B	54.83B	48.09B
	Net Debt
87.26B	80.85B	70.52B	63.37B	54.19B	46.99B
	Total Liabilities
133.90B	129.28B	118.47B	109.50B	95.49B	82.75B
	Stockholders Equity
49.81B	50.10B	47.47B	39.23B	37.20B	36.51B
Cash Flow		Free Cash Flow
4.41B	4.75B	1.75B	-1.48B	-277.00M	224.00M
	Operating Cash Flow
12.95B	13.26B	11.30B	8.26B	7.55B	7.98B
	Investing Cash Flow
-20.67B	-22.26B	-23.47B	-18.36B	-13.59B	-13.70B
	Financing Cash Flow
8.06B	7.00B	12.15B	12.23B	5.81B	6.17B

NextEra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 74.78 is above the 20-day moving average (MA) of 70.99, above the 50-day MA of 68.61, and above the 200-day MA of 72.78, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 90.25 is Negative, 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
NEE	79 Outperform	$152.01B	27.96	11.19%	3.07%	20.35%	-27.07%
D	75 Outperform	$47.39B	20.85	8.22%	4.81%	3.62%	40.33%
EXC	73 Outperform	$44.06B	16.05	10.10%	3.67%	6.71%	16.09%
DUK	72 Outperform	$91.16B	19.49	9.48%	3.56%	5.02%	45.08%
AEP	69 Neutral	$55.03B	19.85	10.41%	3.61%	4.20%	-3.64%
SO	69 Neutral	$99.31B	21.66	14.01%	3.28%	9.58%	8.02%
Sector *	64 Neutral	$8.59B	10.39	4.24%	4.64%	4.07%	-13.04%

NextEra Energy Corporate Events

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.

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.