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Nextera Energy Inc
🇺🇸 NEE · NYSE/NASDAQ
Utilities
Price at analysis: USD 82.92 Current price: USD 86.39 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
14.9
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.
Net Debt/EBITDA (TTM)
6.3x
Latest quarter: 22.8x
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.
Latest quarter (2026-09-30): 22.8x
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
14.1%
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.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.00%
TTM: 3.01%
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): 3.00%
Trailing Yield (TTM, last 12 months): 3.01%
Payout Ratio (Fwd)
62.0% TTM
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)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 28 Aug 2027 | — | USD | 0.6232 |
| Forecast* | Quarterly | — | 05 Jun 2027 | — | USD | 0.6232 |
| Forecast* | Quarterly | — | 27 Feb 2027 | — | USD | 0.6232 |
| Declared | Quarterly | 22 Oct 2026 | 27 Nov 2026 | 15 Dec 2026 | USD | 0.6232 |
| Paid | Quarterly | 30 Jul 2026 | 28 Aug 2026 | 15 Sep 2026 | USD | 0.6232 |
| 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
📊 What Changed From Last Analysis?
Upgraded from WATCH to OPTIMAL as the TTM P/E compressed to a highly attractive 14.91x (entering our optimal 8-15x range), resolving previous valuation concerns. Additionally, several major legal overhangs have reached concrete settlements, significantly de-risking the near-term outlook.
Summary
NextEra Energy remains an elite, wide-moat utility that combines regulated stability with aggressive clean energy growth. With valuation falling to a compelling 14.91x P/E and major legal overhangs successfully settling, the entry point has become highly attractive. Worth considering for new positions as a top-tier dividend growth compounder.
Sector Context
NextEra Energy is a premier holding company combining Florida Power & Light (a regulated electric utility monopoly) and NextEra Energy Resources (a massive competitive clean energy developer). For DGI investors, utilities offer essential service stability, though NextEra's heavy growth capex model structurally results in negative free cash flow that requires external financing and mild equity issuance.
Temporary Opportunity Identified
Previous valuation suppression due to a mix of higher interest rate fears and lingering political interference/legal overhangs, which are now being definitively resolved via structured settlements.
📊 Strategy Analysis
- • Valuation has become highly attractive, with the TTM P/E compressing to 14.91x, moving squarely into our optimal 8-15x range.
- • Management signaled immense confidence with a declared 9.9% dividend increase for 2026, extending an impressive streak of roughly 10% annual dividend growth.
- • Significant de-risking as multiple major legal overhangs—including a $15.5M derivative suit, an $8M 401(k) suit, and a $9.5M wage-fixing case—have reached favorable settlements or approvals in late 2026.
- • Elite structural tailwinds from massive AI data center power demand, highlighted by a $100 billion data center campus partnership with Brookfield Corp.
⚠ What to Watch
- • Negative free cash flow (-$3.11 billion) remains a structural reality of its aggressive capital expenditure requirements, meaning the dividend is funded by operating cash and debt rather than FCF.
- • Continuous capital needs result in mild ongoing share dilution, reflected in a net buyback yield of -1.17%.
- • Debt load remains elevated with a Net Debt/EBITDA ratio of 6.29x, maintaining some sensitivity to interest rate fluctuations.
📊 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: 2026-10-31
Disclaimer: This information is for educational purposes only. Not financial advice.