NextEra Energy Stock Analysis, Valuation (NYSE:NEE)

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$174.79 $2.02 (1.17%) NEE stock closing price Aug 16, 2018 (Closing)

View the NextEra Energy stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for NEE stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NextEra Energy Inc Stock Rating 3.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for NEE stock analysis. We compare NextEra Energy valuation with its sector peers to gauge relative attractiveness of NEE stock. Our NextEra Energy stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy NEE stock?

  • NextEra Energy had a healthy average operating margin of 22.96 over the last 4 quarters.
  • Net margins came in at average 49.1% for NextEra Energy over the last twelve months.
  • The company has an operating cash flow which is 2.0667 times the net income. We see this as a positive signal.
  • NextEra Energy has a good Return On Equity (ROE) of 26.4.
  • NextEra Energy has a healthy FCF (Free Cash Flow) margin of 62.1.

Should you sell NEE stock?

  • NEE stock is trading at a PE ratio of 24.4, which is worse than the sector average multiple of 20.1.
  • NEE stock is trading at a PS multiple of 5, which is a negative when compared to the Utilities sector average multiple of 2.1.

Comments on this video and NextEra Energy stock

Investors can use Amigobulls NextEra Energy stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, NextEra Energy revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of NextEra Energy stock.