NextEra Energy, Inc.(NEE) - Stock detail

NextEra Energy, Inc.

US
NEE
NextEra Energy, Inc.(Listing date: 02/15/1950)

NextEra Energy, Inc. was incorporated in 1984 under the laws of Florida. NEE is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy industry. NEE has two main businesses: FPL and NEER. FPL is the largest electric utility in Florida and one of the largest in the United States. FPL's strategic focus is on investing in generation, transmission and distribution facilities to continue delivering its value proposition of low cost, high reliability, excellent customer service and clean energy solutions, benefiting more than 5 million customers. NEER is the world's largest generator of renewable energy from wind and solar. NEER's strategic focus is on the development, construction and operation of long-term contracted assets in the United States and Canada, including renewable energy generation facilities, natural gas pipelines, transmission facilities and battery storage projects. In January 2019, NEE completed the acquisition of Gulf Power, a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electricity in northwest Florida.

AI Value AnalystHold
Overall Rating4/10
Generated at:2026-03-04 16:37:08
Analysis based on 5 financial reports from periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Market data as of 2026-03-05. Data includes comprehensive financial metrics, valuation multiples, and profitability indicators.
Overview

NextEra Energy is a leading North American electric utility company with strong positioning in renewable energy transition, demonstrating robust revenue growth but mixed financial health indicators and premium valuation relative to utility sector peers.

Valuation
3/10
Profitability
5/10
Financial health
4/10
Operation Advice
  • Existing holders should maintain positions; new investors should wait for better entry points below $85 for improved risk-reward profile.
  • Base case 12-month price target range is $95-105 (8-13% upside), with bull case $110-120 and bear case $80-85.

Valuation

P/E TTM
28.09
P/E LYR
26.87
P/B MRQ
3.52
P/S TTM
--
AI Analysis
  • NEE trades at premium multiples relative to utility sector peers (Forward PE: 26.87, Trailing PE: 28.09, PB: 3.52x, PS: 7.05x), appearing slightly overvalued relative to traditional utility metrics but fairly valued considering its growth premium and renewable energy leadership position.
  • Forward PE: 26.87
  • Trailing PE: 28.09
  • Industry average PE: ~20-22 (utilities sector)
  • PB Valuation: 3.52x book value vs. industry average ~1.5-2.0x
  • PS Valuation: 7.05x sales, elevated compared to traditional utilities
  • NEE trades at premium multiples relative to utility sector peers
  • Premium multiples justified by superior growth profile and renewable energy positioning but presenting valuation concerns
  • At $92.60, NEE appears slightly overvalued relative to traditional utility metrics but fairly valued considering its growth premium
Valuation trend

Profitability

ROE TTM
13.06%
Net margin
19.45%
Gross margin
81.96%
Total revenue
27.41B
AI Analysis
  • NextEra Energy exhibits robust revenue growth (10.74% YoY to $27.41B) with exceptional gross margins (81.96%) but faces pressure on bottom-line profitability with declining net margins (19.45% from 23.02%) and diluted EPS decline from $3.37 to $3.30.
  • Strong 10.74% YoY growth to $27.41B (2025 annual)
  • Exceptional gross margins (81.96%) reflect efficient operations
  • Net margins declined to 19.45% from 23.02% (2024)
  • Diluted EPS of $3.30 (2025) represents a slight decline from $3.37 (2024)
  • Quarterly volatility showing -7.71% to -63.27% YoY changes
  • ROE of 13.06% and ROA of 3.39% remain respectable for the utility sector
  • Company maintains strong operational efficiency but faces pressure on bottom-line profitability
  • Profitability pressures likely due to rising interest costs and capital expenditures for renewable projects
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--1.67%5.67%10.16%13.06%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue24.75B6.25B12.95B20.91B27.41B

Financial health

Debt/Asset
68.75%
Current ratio
0.60
Quick ratio
0.49
Cash ratio
0.49
AI Analysis
  • Mixed financial health with weak short-term liquidity (current ratio 0.60, quick ratio 0.49) and high debt utilization (68.75% debt-to-asset ratio), though common for capital-intensive utilities funding renewable energy transitions.
  • Weak short-term liquidity with current ratio of 0.60 and quick ratio of 0.49, below industry standards
  • High debt utilization with 68.75% debt-to-asset ratio
  • High debt level typical for capital-intensive utilities but requiring careful monitoring
  • Strong gross margins (81.96% in latest annual) but declining net income growth patterns
  • As a utility, the company typically generates stable operating cash flows
  • High debt level common for infrastructure-heavy utilities funding renewable energy transitions
  • Liquidity ratios suggest potential vulnerability to short-term obligations
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset67.99%68.93%69.35%68.39%68.75%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.470.550.540.550.60