NextEra Energy Inc

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NEE : NYSE : Utilities
$150.46 up 0.53 | 0.35%
Today's Range: 149.68 - 150.84
Avg. Daily Volume: 1754400.0
08/21/17 - 3:59 PM ET

Financial Analysis


NEXTERA ENERGY INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NEXTERA ENERGY INC has very weak liquidity. Currently, the Quick Ratio is 0.35 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 11.87% 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 FY17 Q2 FY16
Net Sales ($mil)4404.03816.0
EBITDA ($mil)2175.01659.0
EBIT ($mil)1289.0917.0
Net Income ($mil)793.0540.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)642.0730.0
Total Assets ($mil)92890.085420.0
Total Debt ($mil)34524.032308.0
Equity ($mil)25926.023174.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin49.3943.47
EBITDA Margin49.3843.47
Operating Margin29.2724.03
Sales Turnover0.180.2
Return on Assets4.43.01
Return on Equity15.7911.12
Debt Q2 FY17 Q2 FY16
Current Ratio0.660.57
Debt/Capital0.570.58
Interest Expense430.0602.0
Interest Coverage3.01.52


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)469.0461.97
Div / share0.980.87
EPS1.681.16
Book value / share55.2850.16
Institutional Own % n/a n/a
Avg Daily Volume1753417.01799457.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.93 for the Electric Utilities industry and a discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 2.69 indicates a discount versus the S&P 500 average of 3.02 and a premium versus the industry average of 1.99. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NEE 17.02 Peers 26.93   NEE 11.25 Peers 8.63

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

NEE is trading at a significant discount 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NEE 20.50 Peers 18.69   NEE 2.31 Peers 2.22

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NEE 2.69 Peers 1.99   NEE 55.89 Peers -6.53

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.

 

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

NEE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NEE 4.13 Peers 2.34   NEE 1.24 Peers 13.90

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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