Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- 35.20% is the gross profit margin for NEXTERA ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.29% is above that of the industry average.
- Net operating cash flow has increased to $1,082.00 million or 29.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.10%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- NEXTERA ENERGY INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NEXTERA ENERGY INC reported lower earnings of $4.56 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($4.95 versus $4.56).
- NEE, with its decline in revenue, underperformed when compared the industry average of 13.0%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
NextEra Energy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. The company is involved in the generation of renewable energy from wind and solar projects. NextEra Energy has a market cap of $33.6 billion and is part of the utilities sector and utilities industry. The company has a P/E ratio of 17.00, below the S&P 500 P/E ratio of 18.00. Shares are up 14.4% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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