One-glance verdict
Overvalued
$-2.03 our estimate vs market $77.38
Wall Street consensus: $97.05 (-4,869.5% lower than our fair-value estimate)
3903% below our estimate, beyond the bull case
Fundamentals snapshot
NextEra Energy, Inc.
NEE · NYQ · Utilities · Utilities - Regulated Electric
Current price
$77.38
52-week range
$74.41 - $98.75
Market cap
$161.41B
Balance sheet
Stretched
1.75x Concerning
Net debt $107.33B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.4% last year.
- Reward Returns 11.7% on equity, ahead of 66% of its peers.
- Risk Net debt grew 46.5% over 3 years.
- Risk Forward P/E (17.7x) is higher than trailing (17.4x) - earnings are expected to drop.
What this company does
NextEra Energy, Inc.
NextEra Energy, Inc. is a big electricity company that provides power to millions of homes and businesses, mostly in Florida. They make money by selling electricity generated from sources like wind, solar, and natural gas, and they also manage the power lines and infrastructure needed to deliver that electricity. This means their business is built on providing a consistent service (often called recurring revenue, which is income that comes in regularly) by keeping the lights on for their customers.
How the company got here
NextEra Energy's story began in 1925 with the founding of Florida Power & Light (FPL), initially consolidating various small utilities across Florida. For decades, FPL operated as a traditional electric utility. The company began to expand its horizons in 1984 when it formed FPL Group as a parent company, allowing for growth beyond its regulated Florida operations. A significant turning point came in the late 1990s and early 2000s when FPL Group launched FPL Energy (later renamed NextEra Energy Resources) to develop and operate power generation facilities in competitive markets. This marked a strategic shift towards renewable energy and broader energy infrastructure. In 2010, FPL Group officially changed its name to NextEra Energy, Inc., reflecting its diversified business and commitment to clean energy, solidifying its position as a major player in the energy sector.
What it actually does
NextEra Energy is a major energy company that generates, transmits, and distributes electricity. Think of it like a giant power company that keeps the lights on for millions of people and businesses. It does this by owning and operating a wide variety of power plants, including those that run on natural gas, solar, wind, and even nuclear power. Beyond just generating electricity, the company also manages the complex network of power lines (transmission and distribution) that deliver that electricity to homes and businesses.
Florida Power & Light (FPL)
This is NextEra Energy's regulated utility business, primarily serving customers across Florida. FPL is like your local power company; it generates, transmits, and distributes electricity directly to homes and businesses. Because it's regulated, its rates and profits are overseen by state authorities, which provides a stable and predictable income stream. FPL is focused on providing reliable and affordable electricity to its growing customer base in Florida, investing in grid modernization and clean energy sources to meet demand.
NextEra Energy Resources (NEER)
This segment is NextEra Energy's competitive energy business, operating in wholesale energy markets across North America. NEER focuses on developing, owning, and operating clean energy projects, particularly wind, solar, and battery storage facilities. It sells the electricity generated from these projects under long-term contracts to other utilities, municipalities, and corporations. This part of the business allows NextEra to capitalize on the growing demand for renewable energy and expand its clean energy generation capacity significantly.
What management is betting on now
NextEra Energy's leadership is focused on two main strategies: strengthening its regulated utility in Florida and expanding its clean energy generation across North America. For Florida Power & Light, this means investing in grid improvements to ensure reliability, especially against severe weather, and increasing the use of solar and battery storage to keep costs low for customers. For NextEra Energy Resources, the bet is on aggressively developing more wind, solar, and battery storage projects, leveraging its scale to secure long-term contracts and lead the transition to cleaner energy sources.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
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Net income
$2.18B
Diluted EPS
1.04
Operating cash flow
$2.61B
Free cash flow
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Sources
Revenue
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Net income
$1.54B
Diluted EPS
0.74
Operating cash flow
$2.50B
Free cash flow
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Sources
Revenue
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Net income
$2.44B
Diluted EPS
1.18
Operating cash flow
$4.03B
Free cash flow
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Sources
Revenue
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Net income
$2.03B
Diluted EPS
0.98
Operating cash flow
$3.19B
Free cash flow
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Sources
Revenue
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Net income
$833.00M
Diluted EPS
0.40
Operating cash flow
$2.77B
Free cash flow
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Sources
Revenue
—
Net income
$1.20B
Diluted EPS
0.58
Operating cash flow
$1.98B
Free cash flow
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Sources
Revenue
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Net income
$1.85B
Diluted EPS
0.90
Operating cash flow
$4.27B
Free cash flow
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Sources
Revenue
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Net income
$1.62B
Diluted EPS
0.79
Operating cash flow
$3.93B
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $-2.03 vs current price $77.38
Wall Street consensus is the average analyst price target: $97.05 (-4,869.5% lower than our fair-value estimate).
Our most-likely fair value is $-2.03 a share — about 102.6% below today's price of $77.38, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $107.3B. Interest coverage 1.8x.
Net debt
$107.33B
Interest coverage
1.75x
NextEra Energy, Inc.'s profit covers its interest bill about 1.8 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
NEE
BASELINE
NextEra Energy, Inc.
Total debt $110.20B Interest coverage 1.75x This is the baseline the peer rows are being compared against.
Total debt $77.09B Interest coverage 2.25x +28% vs NEE Carries about 1.3x more debt cushion than NEE.
Total debt $92.21B Interest coverage 2.36x +35% vs NEE Carries about 1.3x more debt cushion than NEE.
Total debt $41.65B Interest coverage 2.14x +22% vs NEE Carries about 1.2x more debt cushion than NEE.
Total debt $53.53B Interest coverage 2.66x +52% vs NEE Carries about 1.5x more debt cushion than NEE.
Total debt $43.54B Interest coverage 3.40x +94% vs NEE Carries about 1.9x more debt cushion than NEE.
What you should know
The case for and against NEE
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.4% last year.
-
Returns 11.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 46.5% over 3 years.
-
Forward P/E (17.7x) is higher than trailing (17.4x) - earnings are expected to drop.
-
Insider ownership is only 0.1% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.39x
Forward P/E
17.68x
P/B
2.83x
P/S
5.62x
EV/EBITDA
19.17x
PEG ratio
1.58x
Profitability
How much profit each dollar creates
Gross margin
61.0%
Operating margin
31.5%
Net margin
32.4%
ROE
11.7%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.62x
Current ratio
0.53x
Quick ratio
0.35x
Total debt
$110.20B
Total cash
$2.87B
Growth
How the business has been compounding
Revenue TTM
$14.88B
Revenue 5Y CAGR
-3.5%
EPS TTM
4.45
EPS 5Y CAGR
16.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.33B
Free CF TTM
$3.21B
FCF margin
21.6%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
53.5%
Last ex-div date
2026-08-28