NextEra Energy Inc (NEE) Stock

NextEra Energy Inc trades at a P/E ratio of 26.46, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 19.46 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.70 indicates a premium valuation even accounting for growth.

With a beta of 0.64, NextEra Energy Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 3.08 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

NextEra Energy Inc achieves a profit margin of 22.90%, meaning it retains $22.90 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 7.59% and ROA at 2.71%, the company achieves moderate returns on invested capital.

NextEra Energy Inc's revenue grew by 10.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 24.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

NextEra Energy Inc offers a dividend yield of 2.85%, paying $2.16 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 28, 2025.

The dividend sustainability can be assessed through the payout ratio - NextEra Energy Inc pays $2.16 per share in dividends against earnings of $2.88 per share, resulting in a payout ratio of 75.10%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Sep 15, 2025.

NextEra Energy Inc has a market capitalization of $156.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 2.06B shares outstanding, the company's ownership is widely distributed. As a major player in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.

NextEra Energy Inc's book value per share is $24.67, while the current stock price is $81.80, resulting in a price-to-book (P/B) ratio of 3.32. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

20 analysts cover NEE with 55% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $82.56 implies 0.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 7 Buy, 8 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.