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 Rating4.3/10
Generated at:2026-04-17 17:42:31
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Current price data as of 2026-04-17 close. Data includes TTM (Trailing Twelve Months) metrics and year-over-year comparisons. Analysis uses fundamental financial ratios and valuation multiples in US Dollars.
Overview

NextEra Energy, Inc. (NEE) is a leading American utility company with significant focus on clean energy. The company shows strong operational efficiency with high gross margins and robust ROE, but faces recent earnings pressure, high financial leverage, and trades at a premium valuation. The overall fundamental picture is mixed, with quality operations offset by valuation concerns and financial risks.

Valuation
3/10
Profitability
6/10
Financial health
4/10
Operation Advice
  • Hold existing positions but wait for a more attractive entry point.
  • Consider buying only if the stock price drops to the lower end of the reasonable valuation range ($85.00) or if there is clear evidence of sustained reversal in earnings growth trajectory.
  • The current premium valuation offers limited margin of safety.

Valuation

P/E TTM
28.09
P/E LYR
26.87
P/B MRQ
3.52
P/S TTM
--
AI Analysis
  • The stock trades at a significant premium to traditional utility valuations with forward P/E of 26.87 and trailing P/E of 28.09, which is high relative to the sector's historical mid-teens average. The P/B ratio of 3.52 and P/S ratio of 7.00 are also elevated. A reasonable fundamental valuation range is $85.00 - $95.00, with the current price of $91.98 sitting in the upper half of this range.
  • Forward P/E is 26.87 and trailing P/E (TTM) is 28.09, which is high relative to the historical average for the utility sector
  • P/B ratio of 3.52 is elevated, supporting the premium valuation narrative
  • P/S ratio of 7.00 is very high, indicating the market prices significant future profit growth from current sales
  • A conservative P/E range for a premium utility might be 22x-25x, implying a price range of $72.60 - $82.50
  • Current market P/E of ~28x suggests the stock is pricing in substantial future growth
  • Given high margins and ROE, but considering recent earnings decline and high leverage, a reasonable fundamental valuation range is $85.00 - $95.00
  • Current price of $91.98 sits in the upper half of the reasonable valuation range
Valuation trend

Profitability

ROE TTM
13.06%
Net margin
19.45%
Gross margin
81.96%
Total revenue
27.41B
AI Analysis
  • The company maintains exceptionally high and stable gross margins (~82%) indicating efficient core operations, but net margin has declined from 23.02% in FY2024 to 19.45% in FY2025. Return on Equity (ROE-TTM) of 13.06% is robust and attractive, while net income attributable to shareholders decreased by -1.60% year-over-year for FY2025.
  • Company maintains exceptionally high and stable gross margins (~82%), indicative of efficient core operations
  • Net margin has declined from 23.02% in FY2024 to 19.45% in FY2025
  • Return on Equity (ROE-TTM) of 13.06% is robust and attractive, especially for a utility
  • Return on Assets (ROA-TTM) of 3.39% is modest, reflecting the asset-heavy nature of the business
  • Year-over-year decline in Net Income attributable to shareholders of -1.60% to $6.83B for full year 2025
  • Earnings decline was more pronounced in first three quarters of 2025 (Q1: -63.27%, Q2: -26.43%, Q3: -7.71%)
  • Revenue growth for FY2025 was healthy at 10.74%
  • Recent earnings headwinds may be easing but are not yet resolved
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
  • The company shows potential short-term liquidity constraints with current ratio of 0.60 and quick ratio of 0.49, both below ideal levels. The debt-to-asset ratio of 68.75% is high, reflecting a leveraged capital structure typical of utilities but increasing financial risk in rising interest rate environments.
  • Current ratio of 0.60 and quick ratio of 0.49 are significantly below the ideal level of 1.0
  • Low liquidity ratios indicate potential short-term liquidity constraints relative to current liabilities
  • This is common for utilities due to their high capital expenditure and debt financing models
  • Debt-to-asset ratio of 68.75% is high, reflecting a leveraged capital structure
  • High leverage is standard for utility companies that finance large infrastructure projects with debt
  • High debt increases financial risk, particularly in a rising interest rate environment
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset67.99%68.93%69.35%68.39%68.75%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.470.550.540.550.60