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 ( TheStreet) -- NextEra Energy (NYSE: NEE) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. Among the primary strengths of the company is its solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Compared to its closing price of one year ago, NEE's share price has jumped by 25.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NEE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NEXTERA ENERGY INC's earnings per share declined by 35.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing 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 ($4.93 versus $4.56).
- NEE, with its decline in revenue, underperformed when compared the industry average of 13.2%. Since the same quarter one year prior, revenues fell by 12.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, NEXTERA ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for NEXTERA ENERGY INC is currently lower than what is desirable, coming in at 33.50%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 12.71% is above that of the industry average.
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