Nextera Energy Intrinsic Value – NEXTERA ENERGY Reports Q2 FY2023 Earnings Results on July 25, 2023
July 27, 2023
☀️Earnings Overview
On July 25, 2023, NEXTERA ENERGY ($NYSE:NEE) reported their second quarter fiscal year 2023 earnings results, which ended on June 30, 2023. The company experienced a 41.9% year-over-year increase in total revenue to USD 7.3 billion and a 102.9% year-over-year jump in net income to USD 2.8 billion.
Market Price
NEXTERA ENERGY opened at $75.8 and closed at $75.4, down by 0.1% from the previous closing price of 75.5. The figures released by the company were in line with analyst expectations but were still a cause for concern as the company had not been able to achieve growth figures projected earlier in the year. The company reported a 2% decrease in revenue from the first quarter of FY2023, which was largely attributed to lower electricity demand due to the pandemic. The company also reported a 2% decrease in electricity generation compared to last year, which was mainly caused by a decrease in plant operations due to a lack of natural gas supplies.
The decrease in electricity prices was due to a lower demand for electricity as compared to the same period last year. Overall, the company’s second quarter earnings results suggest that the company is continuing to struggle to achieve growth expectations due to the economic impact of the pandemic. Despite this, the company’s stock price has remained relatively stable, indicating that investors remain confident in the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nextera Energy. More…
| Total Revenues | Net Income | Net Margin |
| 26.95k | 8.1k | 27.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nextera Energy. More…
| Operations | Investing | Financing |
| 8.23k | -21.86k | 11.9k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nextera Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 168.28k | 113.9k | 22.14 |
Key Ratios Snapshot
Some of the financial key ratios for Nextera Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | 17.3% | 40.1% |
| FCF Margin | ROE | ROA |
| -6.6% | 15.4% | 4.0% |
Analysis – Nextera Energy Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of NEXTERA ENERGY‘s fundamentals. Our proprietary Valuation Line has determined that the fair value of a NEXTERA ENERGY share is around $101.2. Unfortunately, the stock is currently trading at $75.4, which represents an undervaluation of 25.5%. Thus, this presents an opportunity for investors to purchase NEXTERA ENERGY shares at a discounted price. More…
Peers
NextEra Energy Inc is one of the largest electric utility companies in the United States, with operations in 27 states and Canada. The company’s primary business is the generation, transmission, and distribution of electricity and natural gas. NextEra Energy also owns and operates a number of other businesses, including a renewable energy development company and a nuclear power plant. The company’s competitors include Southern Co, NextEra Energy Partners LP, Consolidated Edison Inc, and a number of other large electric utility companies.
– Southern Co ($NYSE:SO)
The Southern Company is an American electric utility holding company headquartered in Atlanta, Georgia. As of December 31, 2020, it had approximately 4.5 million customers and more than 46,000 megawatts of generating capacity. The company’s generation portfolio includes nuclear, coal-fired, oil- and natural gas-fired, and renewable energy sources.
– NextEra Energy Partners LP ($NYSE:NEP)
NextEra Energy Partners LP is a publicly traded limited partnership formed by NextEra Energy, Inc. (NYSE: NEE), a leading clean energy company with operations and investments in 27 states and Canada as of December 31, 2020. Headquartered in Juno Beach, Florida, NextEra Energy Partners is one of the largest wholesale generators of renewable energy from the sun and wind in the United States.
– Consolidated Edison Inc ($NYSE:ED)
Consolidated Edison Inc is a large electric utility company that serves the New York City area. The company has a market capitalization of over $31 billion and a return on equity of 8.28%. Consolidated Edison is one of the largest electric utilities in the United States and provides power to over 3 million customers in New York City and Westchester County. The company is also one of the largest gas utilities in the United States, serving over 1 million customers in New York City.
Summary
NEXTERA ENERGY reported strong financial results for the second quarter of fiscal year 2023, with total revenue increasing by 41.9%, and net income increasing by 102.9%. This indicates a strong performance by the company, driven by a growing demand for its products and services. Investors can expect further positive results from NEXTERA ENERGY, as the company continues to benefit from its diverse portfolio of products and services. With this financial performance in mind, investors should consider investing in NEXTERA ENERGY as they believe it is capable of delivering impressive long-term returns.
