NextEra Energy, Inc. · Utilities - Regulated Electric
FCF$3.0bB
Rev+8.3%B
D/E1.62C+
P/E19.1xB+
PEG1.88C+
60.1Score
$83.65$174.5B
1Y Target$98.50Analyst consensus · 18 analysts
5Y Target$144.21Compound horizon
10Y Target$213.93Long-dated conviction
FCF$3.0bTTM · 06/26B
FCF $3.0b — solid, comfortably covers operations and capital return · TTM computed from 4 most-recent quarters (TTM · 06/26).
Rev+8.3%TTM YoYB
Revenue +8.3% — at or above S&P median
D/E1.62C+
D/E 1.62 — above the Utilities debt median (≈75th pctile)
P/E19.1xB+
P/E 19.1 — below the Utilities median (≈40th pctile)
PEG1.88C+
PEG 1.88 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 60.1
Quality60.9
Growth56.0
Value63.8
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
15% off the 12-month high
vs DCF fair value147% aboveest. fair value ~$34
What the price assumes: free cash flow compounding at ~29% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC4.2% · C+return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
NextEra Energy offers a compelling blend of regulated utility stability through Florida Power & Light (FPL) and high-growth clean energy investments via NEER, driving consistent compounding. With a robust 31.5% profit margin and 8.3% FY YoY revenue growth, the company is effectively translating its strategic investments in wind, solar, and battery storage into shareholder value, further underscored by our model signaling a raising dividend. Our model's strongest pillar, Value (64/100), indicates the market may be underpricing this quality-growth compounder, even as it generates $3.0b in TTM free cash flow. The crux of the thesis rests on NEE's ability to continue expanding its clean energy footprint while maintaining the stability of its regulated assets.
Moat
NextEra Energy's durable edge stems from its dual-pronged strategy: the regulated monopoly of Florida Power & Light Company (FPL) provides highly predictable revenue streams and significant barriers to entry for competitors. Complementing this, its NEER segment benefits from substantial scale and expertise in developing, constructing, and operating generation facilities, including renewables, nuclear, and natural gas, across North America. This extensive infrastructure and investment in clean energy assets create a formidable cost advantage and operational moat that is difficult for new entrants to replicate quickly.
Risk
Skeptics would argue that NextEra Energy's current valuation already prices in an overly optimistic future, with our model's reverse DCF implying a demanding ~29%/year free-cash-flow growth sustained for a decade. This significantly outstrips the reported 8.3% FY YoY revenue growth, suggesting the market is baking in substantial future acceleration or margin expansion not yet evident. Furthermore, the capital-intensive nature of its operations, reflected in a high debt-to-equity ratio of 1.62, could become a liability if growth falters or interest rates rise, especially given its P/E TTM of 19.4. Our model's weakest pillar, Growth (56/100), highlights these concerns. The concrete signal confirming the bear case would be a sustained deceleration in NEER's clean energy project pipeline or increased regulatory headwinds impacting FPL's profitability.
Horizon
1-3 yr $98.50 (18-analyst consensus) — fundamentals + valuation re-rating. 5 yr $144.21 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $213.93 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
NEE vs the Top Picks average
Pillar
NEE
Book avg
Diff
Quality
0.61
0.84
-0.23
Growth
0.56
0.84
-0.28
Value
0.64
0.78
-0.15
Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · NEE
Trend
-4.3 over 46 daily scores
From 64.4 (Jun 22) → 60.1 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Analyst estimate revisions
30-day change
+0.3%
90-day change
+0.4%
Forward EPS estimate
$4.42
Over the last 90 days, what analysts expect NEE to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · NEE
$
%
%
Shares to buy
23
Position size
$1,924
3.8% of portfolio
Stop price
$62.74
25% below $83.65
$ at risk if stopped
$480.99
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
NextEra Energy, Inc. (NEE): score, valuation & FAQ
NextEra Energy, Inc. (NEE) is a Utilities - Regulated Electric company that scores 60.1 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (B+). On valuation, NEE sits about 147% above our discounted-cash-flow fair value — the current price implies roughly 29% annual free-cash-flow growth over the next decade.
Is NEE a good stock to buy?
Bull Rankings scores NEE 60.1 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (B+). A score is a quantitative screen of NextEra Energy, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does NEE score 60.1 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). NEE earns its highest marks on P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is NEE overvalued or undervalued?
Based on $83.65, NEE sits about 147% above our discounted-cash-flow fair value — the current price implies roughly 29% annual free-cash-flow growth over the next decade. It trades at a 19.1x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in NEE?
Skeptics would argue that NextEra Energy's current valuation already prices in an overly optimistic future, with our model's reverse DCF implying a demanding ~29%/year free-cash-flow growth sustained for a decade. This significantly outstrips the reported 8.3% FY YoY revenue growth, suggesting the market is baking in substantial future acceleration or margin expansion not yet evident. Furthermore, the capital-intensive nature of its operations, reflected in a high debt-to-equity ratio of 1.62, could become a liability if growth falters or interest rates rise, especially given its P/E TTM of 19.4. Our model's weakest pillar, Growth (56/100), highlights these concerns. The concrete signal confirming the bear case would be a sustained deceleration in NEER's clean energy project pipeline or increased regulatory headwinds impacting FPL's profitability.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.