NextEra Energy, Inc. (NEE) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Utilities · Utilities - Regulated Electric
Is NextEra Energy, Inc. a safe investment right now?
NextEra Energy, Inc. is in the Utilities sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $95.52 (Watch Zone).
Why the Altman Z-Score does not apply to NextEra Energy, Inc.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Utilities companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Utilities companies is planned for a future update.
What is NextEra Energy, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $95.52 | 22 Wall Street analysts |
| Analyst High / Low | $111.00 / $55.00 | Range of analyst price targets |
| Price / Book | 3.43x | Current market valuation vs book value |
| Return on Equity | 8.4% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to NextEra Energy, Inc.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Utilities companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Utilities companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Utilities companies is planned for a future update.
Is NextEra Energy, Inc.'s dividend safe?
Can NextEra Energy, Inc. afford its dividend?
Payout ratio is 68.7%. FCF covers the dividend -0.4x. 45 consecutive years of payments.
NextEra Energy, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $27.4B | $24.8B | $21.0B | Rising |
| Net Income | $6.8B | $6.9B | $4.1B | Rising |
| Free Cash Flow | $3.2B | $4.7B | −$1.5B | Rising |
| Gross Margin | 62.3% | 60.1% | 48.4% | Rising |
Recent events that affect our NEE analysis
NEE earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.97. Revenue estimate: $7.27B. Our current Fair Value: $95.52 — a significant beat or miss could shift this estimate.
NEE analyst consensus: 67% bullish (16 of 24 analysts)
4 Strong Buy, 12 Buy, 7 Hold, 1 Sell, 0 Strong Sell. Consensus target: $95.52 (6.1% upside). Compare with our independent Fair Value: $95.52.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE paid $0.6230/share dividend
Dividend Safety Grade: C. Payout ratio: 68.7%.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE beat EPS estimates by 2.4%
Reported EPS: $0.54 vs estimate $0.53. Earnings strength supports our Fair Value of $95.52 (6.1% above current price).
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE paid $0.5670/share dividend
Dividend Safety Grade: C. Payout ratio: 68.7%.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE beat EPS estimates by 10.6%
Reported EPS: $1.13 vs estimate $1.02. Earnings strength supports our Fair Value of $95.52 (6.1% above current price).
NEE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE paid $0.5670/share dividend
Dividend Safety Grade: C. Payout ratio: 68.7%.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE beat EPS estimates by 4.0%
Reported EPS: $1.05 vs estimate $1.01. Earnings strength supports our Fair Value of $95.52 (6.1% above current price).
NEE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE paid $0.5670/share dividend
Dividend Safety Grade: C. Payout ratio: 68.7%.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE beat EPS estimates by 1.2%
Reported EPS: $0.99 vs estimate $0.98. Earnings strength supports our Fair Value of $95.52 (6.1% above current price).
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE paid $0.5670/share dividend
Dividend Safety Grade: C. Payout ratio: 68.7%.
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NEE beat EPS estimates by 0.8%
Reported EPS: $0.53 vs estimate $0.53. Earnings strength supports our Fair Value of $95.52 (6.1% above current price).
NEE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about NextEra Energy, Inc.
What is NextEra Energy, Inc. stock price today?
NextEra Energy, Inc. (NEE) stock price is $90.00 as of the latest market close, traded on the NYSE exchange.
What does NextEra Energy, Inc. do?
NextEra Energy, Inc., through its subsidiaries, generates, stores, transmits, distributes, and sells electric power to retail and wholesale customers in North America. It operates through Florida Power & Light Company (FPL) and NEER segments. It generates electricity from wind, solar, nuclear, natural gas, and other clean energy assets.
What is NextEra Energy, Inc. market cap?
NextEra Energy, Inc. has a market capitalization of $187.68B, classifying it as a large-cap stock in the Utilities sector.
What sector and industry is NEE in?
NextEra Energy, Inc. operates in the Utilities sector, specifically within the Utilities - Regulated Electric industry. It trades on the NYSE under the ticker symbol NEE.
Is NEE stock overvalued or undervalued?
Based on our valuation model, NextEra Energy, Inc. trades 5.8% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $95.52
- Current Price: $90.00
- Valuation Zone: Watch Zone
What is NEE stock forecast and analyst target price?
Based on 22 Wall Street analysts, the consensus price target for NextEra Energy, Inc. is $95.52, implying upside of 6.1% from the current price.
- Analyst High Target: $111.00
- Analyst Low Target: $55.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is NextEra Energy, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for NextEra Energy, Inc.:
- Revenue growth (current year est.): 15.2%
- EPS growth (current year est.): 8.1%
- Revenue growth (next year est.): 8.8%
- EPS growth (next year est.): 9.3%
What are NextEra Energy, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $27.4B | Rising |
| Net Income | $6.8B | Rising |
| Free Cash Flow | $3.2B | Rising |
| Gross Margin | 62.3% | Rising |
What is NEE's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 27.3x
- Forward P/E (next 12 months est.): 20.5x
How volatile is NEE stock?
NextEra Energy, Inc. has a beta of 0.73, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does NextEra Energy, Inc. have?
NextEra Energy, Inc.'s balance sheet shows:
- Total Cash: $2.81B
- Total Debt: $97.22B
- Net Cash Position: $-94.41B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is NextEra Energy, Inc.'s free cash flow?
NextEra Energy, Inc. generated $-15.21B in trailing twelve-month free cash flow (from $12.49B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does NextEra Energy, Inc. pay a dividend, and is it safe?
Yes, NextEra Energy, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.5%
- Payout Ratio: 68.7%
- Consecutive Years Paid: 45
- 5-Year Dividend Growth: -16.6%
- FairValueLabs Safety Grade: C
Is NextEra Energy, Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Utilities companies like NextEra Energy, Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does NextEra Energy, Inc. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Utilities companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is NEE's return on equity (ROE)?
NextEra Energy, Inc.'s return on equity is 8.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy NEE stock?
NEE shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol NEE
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is NEE a value stock or speculative?
FairValueLabs classifies NextEra Energy, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of NextEra Energy, Inc.?
The current CEO of NextEra Energy, Inc. is Mr. John W. Ketchum J.D..
What is NEE's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.30
- Forward EPS (next 12 months est.): $4.38
- Analyst consensus EPS (this year): $4.01
- Analyst consensus EPS (next year): $4.39
Other Utilities companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
NEE analysis methodology: How we calculate fair value, Z-Scores, and moat ratings