NextEra Energy, Inc.
Find Ratings Reports
-0.53 |
-0.71%
NEXTERA ENERGY INC's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. NEXTERA ENERGY INC has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.89% 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 | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 4785.0 | 5572.0 |
| EBITDA ($mil) | 2288.0 | 2920.0 |
| EBIT ($mil) | 1009.0 | 1625.0 |
| Net Income ($mil) | 1229.0 | 880.0 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 1961.0 | 1131.0 |
| Total Assets ($mil) | 126382.0 | 114222.0 |
| Total Debt ($mil) | 48296.0 | 41787.0 |
| Equity ($mil) | 37287.0 | 36592.0 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 47.82 | 52.4 |
| EBITDA Margin | 47.81 | 52.4 |
| Operating Margin | 21.09 | 29.16 |
| Sales Turnover | 0.14 | 0.17 |
| Return on Assets | 3.08 | 2.81 |
| Return on Equity | 10.45 | 8.78 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 0.57 | 0.58 |
| Debt/Capital | 0.56 | 0.53 |
| Interest Expense | 209.0 | 746.0 |
| Interest Coverage | 4.83 | 2.18 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 1959.08 | 1955.1 |
| Div / share | 0.35 | 0.31 |
| EPS | 0.63 | 0.45 |
| Book value / share | 19.03 | 18.72 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3864034.0 | 1877743.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 30.83 for the Utilities subsector and a value on par with the S&P 500 average of 36.58. For additional comparison, its price-to-book ratio of 3.99 indicates valuation on par with the S&P 500 average of 3.92 and a premium versus the subsector average of 2.94. The price-to-sales ratio is well above both the S&P 500 average and the subsector 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NEE 38.27 | Peers 29.02 | NEE 17.42 | Peers 10.94 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. NEE is trading at a significant 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 significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| NEE 30.41 | Peers 24.13 | NEE NM | Peers 32.74 | |||||||||||||||||||||
|
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 significant premium to its peers. |
Neutral. 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's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| NEE 3.99 | Peers 2.94 | NEE 19.21 | Peers 22.28 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| NEE 8.18 | Peers 4.13 | NEE -4.30 | Peers -1.11 | |||||||||||||||||||||
|
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 subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NEE significantly trails its peers on the basis of sales growth. |
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