NextEra Energy (NEE) AI Stock Analysis

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NextEra Energy

(NYSE:NEE)

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Neutral 68 (OpenAI - 4o)

Rating:68Neutral

Price Target:

$76.00

▲(6.92% Upside)

NextEra Energy's overall stock score is driven by its strong financial performance and positive earnings call sentiment, highlighting robust growth prospects and strategic initiatives. However, technical indicators suggest bearish momentum, and the stock's high valuation presents potential risks. The company's ability to navigate regulatory challenges and interest costs will be crucial for sustaining its growth trajectory.

Positive Factors

Strong Project Backlog

A robust project backlog signifies sustained future revenue streams and market demand, enhancing long-term growth prospects and stability.

Revenue Growth

Consistent revenue growth indicates increasing market share and effective business strategies, supporting long-term financial health.

Regulatory Environment

A favorable regulatory environment ensures stable operations and predictable revenue, crucial for long-term strategic planning and growth.

Negative Factors

Regulatory Challenges

Regulatory challenges can introduce operational uncertainties and potential compliance costs, impacting long-term strategic initiatives.

Weaker Wind Resources

Weaker wind resources can reduce energy output and profitability, affecting the reliability of renewable energy revenue streams.

Higher Interest Costs

Increased interest expenses can strain cash flow and limit financial flexibility, posing risks to long-term financial health and investment capacity.

NextEra Energy (NEE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$146.37B

Dividend Yield3.12%

Average Volume (3M)9.99M

Price to Earnings (P/E)24.8

Beta (1Y)0.46

Revenue Growth18.80%

EPS Growth-6.73%

CountryUS

Employees16,800

SectorUtilities

Sector Strength65

IndustryRegulated Electric

Share Statistics

EPS (TTM)1.05

Shares Outstanding2,059,292,500

10 Day Avg. Volume9,834,591

30 Day Avg. Volume9,985,410

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.67

Enterprise Value/Revenue9.44

Enterprise Value/Gross Profit15.23

Enterprise Value/Ebitda17.18

Forecast

1Y Price Target

$86.20

Price Target Upside21.27% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

NextEra Energy Business Overview & Revenue Model

Company DescriptionNextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. The company was founded in 1925 and is headquartered in Juno Beach, Florida.

How the Company Makes MoneyNextEra Energy generates revenue primarily through the sale of electricity and renewable energy certificates (RECs). The Florida Power & Light Company (FPL) segment earns revenue by providing electric utility services to residential, commercial, and industrial customers, operating under a regulated model where rates are set by the Florida Public Service Commission. The NextEra Energy Resources segment makes money by owning and operating renewable energy facilities, including wind and solar farms, selling electricity generated by these assets to wholesale markets and through long-term power purchase agreements (PPAs) with utilities and other buyers. Additionally, the company benefits from tax incentives and subsidies related to renewable energy production, enhancing its profitability. Strategic partnerships with various stakeholders, including governments and other energy companies, further contribute to its revenue streams.

NextEra Energy Key Performance Indicators (KPIs)

Any

FPL Customers

FPL Customers
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.

Chart InsightsFPL's customer base has experienced significant growth since 2023, with a notable surge in 2024, reflecting strong infrastructure investments and regulatory support for expansion. The recent earnings call highlighted FPL's strategic focus on capital expenditures and regulatory capital, which are likely driving this customer growth. Despite regulatory challenges, the company's robust financial performance and infrastructure investments position it well for continued expansion, aligning with Florida's growing population needs.

Data provided by:

Main Street Data

NextEra Energy Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive overall sentiment with strong financial performance, robust project backlog, and significant customer demand contributing to growth. However, challenges remain with regulatory uncertainties and weaker wind resources impacting certain segments.

Q2-2025 Updates

Positive Updates

Strong Earnings Performance

NextEra Energy delivered a strong second quarter with adjusted earnings per share increasing by 9.4% year-over-year. Through the first six months of the year, adjusted earnings per share increased by 9.1% year-over-year.

Significant Project Backlog

Energy Resources added 3.2 gigawatts of new projects since the last earnings call, bringing the total backlog to nearly 30 gigawatts. This marks the sixth time in the past eight quarters that Energy Resources has added more than 3 gigawatts to its backlog.

Robust Customer Demand

FPL's second-quarter retail sales increased by 1.7% from the previous year, driven by strong customer growth. The company is seeing demand growth from all sectors, including residential, commercial, and industrial.

Favorable Regulatory Environment

Florida's regulatory environment remains constructive, with the Florida Supreme Court affirming the approval of FPL's 2021 settlement agreement.

Expansion in Data Center Sector

The backlog includes approximately 6 gigawatts of projects intended to serve technology and data center customers, with over 10.5 gigawatts expected to serve this sector across the United States.

Negative Updates

Challenges with Regulatory and Policy Environment

The company faces a challenging regulatory and policy environment, including executive orders and agency rulemakings that could impact operations.

Weaker Wind Resource

Energy Resources' existing clean energy portfolio faced a $0.02 per share decrease due to weaker wind resources during the quarter, with wind resources at approximately 97% of the long-term average.

Higher Interest Costs

All other impacts decreased by $0.07 per share, driven by higher interest costs of $0.06 per share.

Company Guidance

During the second quarter of 2025, NextEra Energy provided a robust outlook, highlighting a 9.4% year-over-year increase in adjusted earnings per share. The company emphasized its strategic initiatives to meet the rising U.S. electricity demand, particularly driven by sectors such as artificial intelligence and manufacturing. Key metrics included Florida Power & Light's (FPL) capital expenditures of approximately $2 billion for the quarter and a projected full-year investment between $8 billion and $8.8 billion. FPL reported a 1.7% increase in retail sales, driven by customer growth, and an anticipated regulatory capital employed growth of nearly 8% year-over-year. The company also highlighted the addition of 3.2 gigawatts of new projects, bringing its backlog to nearly 30 gigawatts, with significant contributions from renewables and storage. Looking forward, NextEra remains confident in maintaining strong financial performance, aiming to deliver results at or near the top end of its adjusted earnings per share expectation ranges through 2027, with projected dividend growth of around 10% annually through at least 2026.

NextEra Energy Financial Statement Overview

Summary

NextEra Energy demonstrates strong financial performance with robust profitability margins and effective cash flow management. The company shows consistent revenue growth, although net income has slightly decreased recently. The balance sheet is stable with moderate leverage typical for the industry.

Income Statement

Very Positive

NextEra Energy shows a strong financial performance with improving profitability metrics. The Gross Profit Margin for TTM is approximately 66.7%, indicating efficient cost management. The Net Profit Margin is 22.8%, reflecting solid bottom-line performance. Revenue growth is healthy with a TTM growth rate of 4.6% compared to the previous annual report. EBIT and EBITDA margins are robust at 30.8% and 51.6% respectively, showcasing operational efficiency. The company maintains a positive growth trajectory in revenue and earnings, although the net income has slightly decreased in TTM compared to the previous year.

Balance Sheet

Positive

NextEra Energy's balance sheet displays a stable financial position. The Debt-to-Equity ratio is relatively high at 0.21, suggesting moderate leverage, which is common in the regulated electric industry. The Return on Equity (ROE) is strong at 11.6%, indicating effective use of equity capital to generate profits. The Equity Ratio stands at 25.6%, reflecting a balanced capital structure. While leverage is noteworthy, it remains within manageable levels for the industry.

Cash Flow

Positive

The cash flow statement reveals a resilient cash generation ability. Free Cash Flow has grown significantly by 75.0% from the previous year, driven by strong operating cash inflows. The Operating Cash Flow to Net Income ratio is 2.06, suggesting robust cash conversion from net income. The Free Cash Flow to Net Income ratio is 1.4, highlighting a good level of free cash flow relative to net earnings. The company exhibits strong cash flow management, although capital expenditures remain high, aligning with industry norms.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.90B	24.75B	28.11B	20.96B	17.07B	18.00B
Gross Profit	16.05B	14.87B	17.98B	10.14B	8.56B	10.71B
EBITDA	14.23B	14.03B	16.76B	9.21B	8.66B	8.68B
Net Income	5.92B	6.95B	7.31B	4.15B	3.57B	2.92B
Balance Sheet
Total Assets	198.83B	190.14B	177.49B	158.94B	140.91B	127.68B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.49B	2.69B	1.60B	639.00M	1.10B
Total Debt	93.19B	82.33B	73.21B	64.97B	54.83B	48.09B
Total Liabilities	137.90B	129.28B	118.47B	109.50B	95.24B	82.75B
Stockholders Equity	50.80B	50.10B	47.47B	39.23B	37.20B	36.51B
Cash Flow
Free Cash Flow	8.30B	4.75B	1.75B	-1.48B	-277.00M	224.00M
Operating Cash Flow	12.21B	13.26B	11.30B	8.26B	7.55B	7.98B
Investing Cash Flow	-21.68B	-22.26B	-23.47B	-18.36B	-13.59B	-13.70B
Financing Cash Flow	9.36B	7.00B	12.15B	12.23B	5.81B	6.17B

NextEra Energy Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price71.08

Price Trends

50DMA

72.42

Negative

100DMA

71.29

Negative

200DMA

70.17

Positive

Market Momentum

MACD

-0.56

Positive

RSI

46.35

Neutral

STOCH

45.17

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Neutral. The current price of 71.08 is below the 20-day moving average (MA) of 71.78, below the 50-day MA of 72.42, and above the 200-day MA of 70.17, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEE.

NextEra Energy Risk Analysis

NextEra Energy disclosed 52 risk factors in its most recent earnings report. NextEra Energy reported the most risks in the "Production" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

NextEra Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D	75 Outperform	51.08B	20.68	8.39%	4.46%	7.60%	55.99%
AEP	74 Outperform	57.26B	15.68	12.22%	3.47%	5.84%	36.33%
DUK	71 Outperform	94.15B	19.80	9.50%	3.47%	4.07%	9.94%
NEE	68 Neutral	$146.37B	24.77	11.84%	3.12%	18.80%	-6.73%
EXC	66 Neutral	43.84B	16.48	9.61%	3.64%	4.46%	8.68%
SO	66 Neutral	100.98B	23.70	12.59%	3.18%	8.53%	-7.53%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

* Utilities Sector Average

Performance Comparison

NEE

NextEra Energy

71.08

-11.18

-13.59%

AEP

American Electric Power

107.06

8.17

8.26%

Dominion Energy

59.85

4.62

8.37%

DUK

Duke Energy

121.08

7.96

7.04%

EXC

Exelon

43.41

4.48

11.51%

Southern Co

91.80

4.21

4.81%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2025