Nextera Energy Inc
🇺🇸 NEE · NYSE/NASDAQ · US65339F1012
Utilities
USD 93.15 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
28.5
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: 93.15 ÷ 3.27 = 28.5
TTM period through: 2025-12-31
Forward P/E (estimated): 23.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 28.2
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): 2.44%
Net Debt/EBITDA (TTM)
5.7x
Latest quarter: 24.2x
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: 2025-12-31
Latest quarter (2025-12-31): 24.2x
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)
76.1%
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): 68.5%
Cash Flow Payout (TTM): 37.5%
FCF Coverage (TTM): 0.69x
ROE
8.4%
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
17.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
NextEra Energy operates a premier regulated utility monopoly alongside a world-leading renewable energy development business. While the company boasts exceptional long-term fundamentals and a decade of double-digit dividend growth, the current valuation near a P/E of 28 offers limited upside. Existing shareholders should maintain positions to capture ongoing dividend growth, but new investors may want to wait for a more attractive entry point that provides a higher yield.
Sector Context
NextEra Energy operates as a dual-model enterprise, featuring a premier regulated electric utility in Florida alongside a massive unregulated renewable energy development business. For dividend investors, regulated utilities typically provide stable, predictable cash flows, though NextEra's model pairs this traditional stability with high-growth generation projects that require extensive and continuous capital expenditures.
📊 Strategy Analysis
- • Dominant market position combining a highly profitable regulated utility monopoly in Florida with the world's largest renewable energy generator.
- • Exceptional 10-year dividend history with an 11.2% CAGR, supported by consistent long-term revenue and earnings growth.
- • Strong strategic positioning to benefit from secular tailwinds, including surging power demand from AI/data centers and ongoing energy infrastructure development.
⚠ What to Watch
- • Current P/E of 28.5x drastically exceeds the strategic 8-15x target range, reflecting a premium valuation that leaves limited margin of safety.
- • The 2.44% dividend yield falls below the strategy's strict 3% minimum threshold for initiating new income positions.
- • Free cash flow currently fails to cover the dividend (0.69x coverage) and Net Debt/EBITDA sits at an elevated 5.74x, largely due to the massive capital expenditures required for ongoing growth projects.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.