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NextEra Energy Inc
NEE : NYSE : Utilities
$97.80 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,845,300
10/23/14 - 4:01 PM ET

Financial Analysis


NEXTERA ENERGY INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NEXTERA ENERGY INC has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.01% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)4029.03833.0
EBITDA ($mil)1565.01480.0
EBIT ($mil)952.0981.0
Net Income ($mil)491.0611.0


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)622.0411.0
Total Assets ($mil)71590.065217.0
Total Debt ($mil)29950.028232.0
Equity ($mil)18429.016601.0


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin38.8438.61
EBITDA Margin38.8438.61
Operating Margin23.6325.59
Sales Turnover0.220.22
Return on Assets2.712.64
Return on Equity10.559.26
Debt Q2 FY14 Q2 FY13
Current Ratio0.630.53
Debt/Capital0.620.63
Interest Expense308.0265.0
Interest Coverage3.093.7


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)436.36424.66
Div / share0.730.66
EPS1.121.44
Book value / share42.2339.09
Institutional Own % n/a n/a
Avg Daily Volume1787521.02150947.0

Valuation


BUY. NEXTERA ENERGY INC's P/E ratio indicates a premium compared to an average of 17.78 for the Electric Utilities industry and a premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 2.21 indicates valuation on par with the S&P 500 average of 2.49 and a premium versus the industry average of 1.52. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, NEXTERA ENERGY INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NEE 20.80 Peers 17.78   NEE 7.75 Peers 6.50

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

NEE is trading at a premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NEE is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NEE 16.53 Peers 15.14   NEE 0.66 Peers 1.60

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

NEE is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

NEE trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NEE 2.21 Peers 1.52   NEE 23.35 Peers 28.19

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NEE is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NEE is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NEE 2.59 Peers 1.75   NEE 9.74 Peers 4.99

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NEE is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

NEE has a sales growth rate that significantly exceeds its peers.

 

 

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