NextEra Energy Inc

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NEE : NYSE : Utilities
$128.29 | %
Today's Range: 127.27 - 128.51
Avg. Daily Volume: 1,866,600
07/29/16 - 4:03 PM ET

Financial Analysis


NEXTERA ENERGY INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. 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.

During the same period, stockholders' equity ("net worth") has increased by 8.60% 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 FY16 Q2 FY15
Net Sales ($mil)3816.04359.0
EBITDA ($mil)1659.01893.0
EBIT ($mil)917.01156.0
Net Income ($mil)540.0716.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)730.0551.0
Total Assets ($mil)85420.077201.0
Total Debt ($mil)32308.029774.0
Equity ($mil)23174.021338.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.4743.43
EBITDA Margin43.4743.42
Operating Margin24.0326.52
Sales Turnover0.20.23
Return on Assets3.013.76
Return on Equity11.1213.63
Debt Q2 FY16 Q2 FY15
Current Ratio0.570.67
Debt/Capital0.580.58
Interest Expense602.0280.0
Interest Coverage1.524.13


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)461.45452.1
Div / share0.870.77
EPS1.161.59
Book value / share50.2247.2
Institutional Own % n/a n/a
Avg Daily Volume1877655.02300761.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 22.20 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.07. For additional comparison, its price-to-book ratio of 2.53 indicates valuation on par with the S&P 500 average of 2.81 and a premium versus the industry average of 1.79. 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 22.71 Peers 22.20   NEE 9.17 Peers 7.81

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

NEE is trading at a valuation on par with 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 19.44 Peers 17.67   NEE 11.47 Peers 4.00

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NEE 2.53 Peers 1.79   NEE -14.38 Peers 11.47

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 significantly 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 3.52 Peers 2.35   NEE -6.23 Peers -5.64

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NEE significantly trails its peers on the basis of sales growth

 

 

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