NextEra Energy logged a -1.7% change during today's morning session, and is now trading at a price of $81.43 per share.
NextEra Energy returned gains of 42.4% last year, with its stock price reaching a high of $86.1 and a low of $53.81. Over the same period, the stock outperformed the S&P 500 index by 3.0%. More recently, the company's 50-day average price was $82.32. NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. Based in Juno Beach, FL, the Large-Cap Technology company has 16,800 full time employees. NextEra Energy has offered a 2.4% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $16,727 | $19,204 | $17,997 | $17,069 | $20,956 | $28,114 |
| Operating Margins | 26% | 28% | 28% | 17% | 19% | 36% |
| Net Margins | 40% | 20% | 16% | 21% | 20% | 26% |
| Net Income (M) | $6,638 | $3,769 | $2,919 | $3,573 | $4,147 | $7,310 |
| Net Interest Expense (M) | $3,072 | -$1,517 | -$2,703 | $262 | -$249 | -$2,949 |
| Depreciation & Amort. (M) | $3,911 | $4,216 | $4,052 | $3,924 | $4,503 | $5,879 |
| Diluted Shares (M) | 1,908 | 1,942 | 1,969 | 1,972 | 1,979 | 2,031 |
| Earnings Per Share | $3.48 | $1.94 | $1.48 | $1.81 | $2.1 | $3.6 |
| EPS Growth | n/a | -44.25% | -23.71% | 22.3% | 16.02% | 71.43% |
| Avg. Price | $36.98 | $47.71 | $62.62 | $76.71 | $76.01 | $81.43 |
| P/E Ratio | 10.51 | 24.22 | 42.03 | 42.15 | 36.02 | 22.13 |
| Free Cash Flow (M) | $4,455 | $4,582 | $3,538 | $2,558 | $2,257 | $4,197 |
| CAPEX (M) | $2,138 | $3,573 | $4,445 | $4,995 | $6,005 | $7,104 |
| EV / EBITDA | 9.77 | 10.0 | 14.95 | 24.6 | 19.64 | 11.44 |
| Total Debt (M) | $11,025 | $5,070 | $15,676 | $18,510 | $21,002 | $25,274 |
| Net Debt / EBITDA | 1.27 | 0.47 | 1.59 | 2.61 | 2.26 | 1.4 |
| Current Ratio | 0.36 | 0.53 | 0.47 | 0.53 | 0.51 | 0.55 |
NextEra Energy has growing revenues and increasing reinvestment in the business and strong operating margins with a positive growth rate. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.55. Finally, we note that NextEra Energy has positive cash flows.
a Very Low P/E Ratio but Priced at a Premium:
NextEra Energy has a trailing twelve month P/E ratio of 24.4, compared to an average of 30.01 for the Technology sector. Based on its EPS guidance of $3.68, the company has a forward P/E ratio of 22.4. The 0.8% compound average growth rate of NextEra Energy's historical and projected earnings per share yields a PEG ratio of 30.48. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing NextEra Energy in terms of its equity because its P/B ratio is 3.35 while the sector average is 3.91. The company's shares are currently trading 87.2% below their Graham number.
NextEra Energy Has an Average Rating of Buy:
The 21 analysts following NextEra Energy have set target prices ranging from $58.0 to $102.8 per share, for an average of $88.85 with a buy rating. The company is trading -8.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
NextEra Energy has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 83.5% of the company's shares, and the insider ownership rate stands at 0.08%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $16,360,383,271.
