NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $148.21B
• Dividend Yield: 3.01%
• Average Volume (3M): 11.34M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.45
• Revenue Growth: 18.80%
• EPS Growth: -6.73%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Electric
• EPS (TTM): 1.05
• Shares Outstanding: 2,059,292,500
• 10 Day Avg. Volume: 9,702,082
• 30 Day Avg. Volume: 11,340,634
• PEG Ratio: 3.39
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.05
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 9.19
• Enterprise Value/Ebitda: 2.84
• 1Y Price Target: $80.10
• Price Target Upside: 11.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $80.00 ▲(11.34%Upside)

NextEra Energy's overall stock score is driven by strong financial performance and strategic investments in renewables, supported by solid earnings growth. Neutral technical indicators and moderate valuation balance the score, with positive corporate events reinforcing stability.

Positive Factors

Earnings and Financial Performance

NextEra Energy reported adjusted EPS of $1.05 per share, which is higher than the previous year and above analyst estimates.

Growth and Development

Management's growth guidance remains at 6%-8% through 2027, and there is optimism about achieving results at the high end of EPS expectations.

Market Positioning

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 and Financial Risks

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

Investor Sentiment

The investor call had a relatively subdued tone, indicating potential issues or uncertainties affecting the company.

Regulatory and Structural Challenges

Structural and legal uncertainties present challenges, particularly with changes in siting approvals and the 'in-service' language.

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 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 shows strong financial performance with robust revenue growth, effective cost management, and a stable capital structure. Despite a slight decrease in net income, the company's consistent operating cash flows and manageable leverage indicate a favorable position for future growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.75B	28.11B	20.96B	17.07B	18.00B
Gross Profit	14.87B	17.98B	10.14B	8.59B	10.71B
EBITDA	14.03B	16.76B	10.36B	8.82B	8.23B
Net Income	6.95B	7.31B	3.25B	2.83B	2.92B
Balance Sheet
Total Assets	190.14B	177.49B	158.94B	140.91B	127.68B
Cash, Cash Equivalents and Short-Term Investments	1.49B	2.69B	1.60B	639.00M	1.10B
Total Debt	82.33B	73.21B	64.97B	54.83B	48.09B
Total Liabilities	129.28B	118.47B	109.50B	95.49B	82.75B
Stockholders Equity	50.10B	47.47B	39.23B	37.20B	36.51B
Cash Flow
Free Cash Flow	4.75B	1.75B	-1.48B	-277.00M	224.00M
Operating Cash Flow	13.26B	11.30B	8.26B	7.55B	7.98B
Investing Cash Flow	-22.26B	-23.47B	-18.36B	-13.59B	-13.70B
Financing Cash Flow	7.00B	12.15B	12.23B	5.81B	6.17B

NextEra Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.85
• 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 71.85 is below the 20-day moving average (MA) of 73.81, below the 50-day MA of 72.27, and above the 200-day MA of 71.69, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 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
DUK	74 Outperform	$93.08B	19.93	9.48%	3.49%	5.02%	45.08%
NEE	73 Outperform	$148.21B	25.37	11.84%	3.01%	18.80%	-6.73%
EXC	73 Outperform	$44.15B	16.13	10.10%	3.55%	6.71%	16.09%
SO	70 Outperform	$104.41B	22.81	14.01%	3.04%	9.58%	8.02%
D	69 Neutral	$50.10B	21.87	8.22%	4.54%	3.62%	40.33%
AEP	68 Neutral	$58.21B	21.01	10.41%	3.34%	4.20%	-3.64%
Sector *	63 Neutral	HK$30.48B	8.78	5.37%	4.05%	-3.09%	4.51%

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.