Nextera Energy Inc
🇺🇸 NEE · NYSE/NASDAQ · US65339F1012
Utilities
USD 93.36 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
23.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 93.36 ÷ 3.95 = 23.7
TTM period through: 2026-03-31
Forward P/E (estimated): 23.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 24.3
Yield (Fwd)
2.67%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.45%
Div. Growth (5Y CAGR)
10.0%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
6.0x
Latest quarter: 25.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 25.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
63.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 58.8%
Cash Flow Payout (TTM): 39.0%
FCF Coverage (TTM): 0.49x
ROE
10.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
17.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
NextEra Energy is a premier utility combining a robust regulated monopoly with a globally leading renewable energy business, driving a stellar 11.2% 10-year dividend growth rate. While the underlying business quality is exceptional, the 2.45% yield falls below our strategy's minimum income threshold for new investments. Existing shareholders should maintain positions to capture ongoing dividend growth, but new investors seeking immediate high yield may want to wait for a better entry point.
Sector Context
NextEra Energy operates a hybrid model, acting both as a traditional regulated electric utility in Florida and as one of the world's largest generators of renewable energy. For dividend investors, utilities offer stable, predictable cash flows from regulated monopolies, though massive capital expenditure for renewable expansion can temporarily depress free cash flow metrics and elevate debt levels.
📊 Strategy Analysis
- • Premier business model combining Florida's largest regulated utility (FPL) with a world-leading renewable energy development segment (NEER).
- • Stellar track record of shareholder returns, featuring an 11.2% dividend CAGR over the past 10 years with no cuts.
- • P/FFO of 14.27x sits comfortably within the 12-15x fair value range for premium infrastructure/utility assets, reflecting true cash-generation power better than the 23.66x GAAP P/E.
⚠ What to Watch
- • Trailing dividend yield of 2.45% falls below the strategy's strict 3% minimum threshold for initiating new positions.
- • Current GAAP P/E of 23.66x reflects a premium valuation, sitting well above the strategic 8-15x target range.
- • High ongoing capital expenditures in the renewables segment result in negative free cash flow (-$580M), requiring reliance on debt and equity financing despite strong operating cash flow.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.