What Can We Learn From NextEra Energy Inc. (NEE)’s Valuation Ratios?


NextEra Energy Inc. (NYSE:NEE) finished Thursday with a subtraction of -$0.43 to close at $83.54, a downside of -0.51 percent. An average of 9,541,740 shares of common stock have been traded in the last five days. There was a fall of -$2.47 in the past week, and it reached a new high 24 times over the past 12 months. The last 20 days have seen an average of 8,359,365 shares traded, while the 50-day average volume stands at 7,483,926.

NEE stock has decreased by -5.05% in the last month. The company shares reached their 1-month lowest point of $83.03 on 09/22/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $67.22 and a high of $93.73 in 52 weeks. It has reached a new high 1 time so far this year and lost -10.52% or -$9.82 in price. In spite of this, the price is down -10.87% from the 52-week high.

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Insider Transactions

9 days have passed since NextEra Energy Inc. (NEE) last reported insider trading activity. Reagan Ronald R, who is EVP, Eng., Const. & ISC, most recently acquired $9,307 shares at $88.79 per share on Sep 14. In this transaction, the insider spent $826,369. VP, Controller and CAO, May James Michael, disposed of 4,321 shares at a price of $85.00 on Mar 08. The insider now owns more than $367,285 worth of shares. Prior to that, President & CEO of Sub KETCHUM JOHN W went on to Sale 12,151 shares at $90.29 each on Dec 15. An amount of $1,097,114 was transacted.

Valuation Metrics

NextEra Energy Inc. (NEE) has a trailing price-to-earnings (P/E) ratio of 63.97. The stock’s beta is 0.47. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.52, the price-to-book (PB) ratio at 4.51, and the price-to-cash flow ratio at 29.59.

The company has a payout ratio of 123.30%. The company’s most recent quarterly dividend payment was $0.4250 a share, without any change from last year. Its latest increase dividend $0.04 reported on Friday February 18 2022.

Financial Health

The quick ratio of NextEra Energy Inc. for the three months ended June 29 was 0.50, and the current ratio was 0.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.46 and a total debt to equity ratio of 1.74 for the quarter ending June 29. Its gross profit as reported stood at $2.91 billion compared to revenue of $17.07 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, NextEra Energy Inc.’s return on assets was 1.80%.

Earnings Surprise

For the three-month period that ended June 29, NextEra Energy Inc. had $53.38 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.38 billion in the quarter, while revenues were grew 81.45%. The analyst consensus anticipated NextEra Energy Inc.’s latest quarter earnings to come in at $0.73 per share, but it turned out to be $0.81, a 11.00% surprise. For the quarter, EBITDA amounted to $2.17 billion. Shareholders own equity worth $1.96 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at NextEra Energy Inc. (NEE) price momentum. RSI 9-day as of the close on 22 September was 34.07%, suggesting the stock is Neutral, with historical volatility in this time frame at 25.28%.

As of today, NEE’s price is $84.97 -2.87% or -$2.47 from its 5-day moving average. NEE is currently trading -5.83% lower than its 20-day SMA and +17.63% higher than its 100-day SMA. However, the stock’s current price level is +4.09% above the SMA50 and -6.29% below the SMA200.

The stochastic %K and %D were 8.26% and 15.23%, respectively, and the average true range (ATR) was 1.95. With the 14-day stochastic at 6.35% and the average true range at 1.91, the RSI (14) stands at 39.49%. The stock has reached -2.20 on the 9-day MACD Oscillator while the 14-day reading was at -2.91.

Analyst Ratings

Morgan Stanley upgraded NextEra Energy Inc. (NYSE: NEE) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for NextEra Energy Inc. (NEE) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell NEE, while 6 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 12 others rate it as a “buy”.

What is NEE’s price target for the next 12 months?

Analysts predict a range of price targets between $85.00 and $115.00, with a median target of $98.00. Taking a look at these predictions, the average price target given by analysts for NextEra Energy Inc. (NEE) stock is $98.06.


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