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Nextera Energy Inc
🇺🇸 NEE · NYSE/NASDAQ · US65339F1012
Utilities
USD 87.36 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.1
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: 87.36 ÷ 3.95 = 22.1
TTM period through: 2026-03-31
Forward P/E (estimated): 21.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 22.4
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).
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
16.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.85%
TTM: 2.69%
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.
Forward Yield (estimated): 2.85%
Trailing Yield (TTM, last 12 months): 2.69%
Payout Ratio (Fwd)
63.1%
TTM: 58.8%
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 (Fwd): 63.1%
Payout (TTM): 58.8%
Cash Flow Payout (TTM): 39.0%
FCF Coverage (TTM): 0.49x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
10.1%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 05 Jun 2027 | — | USD | 0.6232 |
| Forecast* | Quarterly | — | 27 Feb 2027 | — | USD | 0.6232 |
| Forecast* | Quarterly | — | 21 Nov 2026 | — | USD | 0.5665 |
| Forecast* | Quarterly | — | 28 Aug 2026 | — | USD | 0.5665 |
| Paid | Quarterly | 21 May 2026 | 05 Jun 2026 | 15 Jun 2026 | USD | 0.6232 |
| Paid | Quarterly | 13 Feb 2026 | 27 Feb 2026 | 16 Mar 2026 | USD | 0.6232 |
| Paid | Quarterly | 23 Oct 2025 | 21 Nov 2025 | 15 Dec 2025 | USD | 0.5665 |
| Paid | Quarterly | 24 Jul 2025 | 28 Aug 2025 | 15 Sep 2025 | USD | 0.5665 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
NextEra Energy is a premier regulated utility and global renewable energy leader with exceptional long-term fundamentals, a robust 10% dividend growth history, and strong tailwinds from AI data center power demand. While recent legal settlements remove major overhangs and the P/FFO valuation of 13.35x represents fair value, the 2.69% dividend yield falls short of our 3% target for new capital. Existing shareholders should maintain positions, while new investors may want to wait for a better entry point that pushes the yield above the 3% threshold.
Sector Context
NextEra Energy operates as a premier holding company combining Florida Power & Light (a regulated utility monopoly) and NextEra Energy Resources (the world's largest generator of renewable energy from the wind and sun). For dividend investors, regulated utilities offer stable, predictable cash flows that support reliable payouts, though their massive capital expenditures typically require significant debt financing and result in negative free cash flow on a GAAP basis.
Temporary Opportunity Identified
The company faced significant overhang from political/election-related lawsuits and broader utility sector pressure from elevated interest rates. The recent $150M settlement resolves the primary legal headwind, while cooling labor data hints at potential future rate relief.
📊 Strategy Analysis
- • Exceptional dividend growth profile with a 10% CAGR over the past decade and consistent double-digit raises, backed by stable regulated cash flows.
- • Strong structural tailwinds from surging electricity demand for AI data centers, securing long-term growth visibility through multi-gigawatt natural gas and renewable agreements.
- • Recent $150 million settlement resolves the long-standing class-action lawsuit tied to past political controversies, significantly reducing legal overhang and uncertainty.
- • Fairly valued on a cash-flow basis with a P/FFO of 13.35x, which sits comfortably within the 12-15x fair value range for premium utility assets.
⚠ What to Watch
- • Trailing dividend yield of 2.69% falls short of the strategy's strict 3% minimum threshold for initiating new positions.
- • Negative free cash flow (-$580M) driven by massive ongoing capital expenditures for renewable projects necessitates continued reliance on debt and equity financing.
- • Elevated Net Debt/EBITDA of 5.95x increases exposure and financing costs in a higher-for-longer interest rate environment.
📊 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: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.