Nextera Energy Stock Fair Value – NEXTERA ENERGY Reports 26.7% Increase in Revenue and 22.0% Rise in Net Income in Q4 FY 2022.
February 7, 2023
Earnings report
Nextera Energy Stock Fair Value – NEXTERA ENERGY ($NYSE:NEE) is one of the leading power companies in the United States, with operations spread across multiple states. It has been involved in the generation, transmission, distribution and sale of electricity, as well as the production of renewable energy and energy storage. NEXTERA ENERGY recently reported its earnings results for the fourth quarter of FY 2022, which ended on December 31, 2022. Total revenue amounted to USD 1.5 billion, an increase of 26.7% from the same period the previous year. Net income reached USD 6.2 billion, a 22.0% rise from the previous year.
The company attributed its strong results to strong demand for electricity in its core markets, along with higher electricity prices. Overall, NEXTERA ENERGY’s strong financial performance in the fourth quarter of FY 2022 was largely driven by strong demand for electricity and higher electricity prices. The company’s focus on renewable energy and energy storage is also paying off in terms of both revenue and profits. Going forward, the company is looking to leverage its strong position in the market to continue driving growth and profitability.
Stock Price
On Wednesday, NEXTERA ENERGY reported a 26.7% increase in revenue and a 22.0% rise in net income for the fourth quarter of FY 2022. This was an impressive result, especially considering the 8.7% drop in the stock price that occurred on the same day, opening at $80.5 and closing at $76.6 from the prior closing price of $83.9. The revenue generated during the quarter was driven by higher sales in retail electric, retail solar, and commercial solar businesses. These sales were driven by a surge in demand due to favorable weather conditions and customer growth.
Additionally, the company’s cost-reduction initiatives also resulted in lower operating expenses, which enabled them to report higher net income for the quarter. NEXTERA ENERGY’s performance in the fourth quarter of FY 2022 has been a positive development for both shareholders and customers alike. It is a testament to their commitment to providing reliable, affordable energy solutions to their customers while also delivering strong financial performance to their shareholders. The company’s outlook for the upcoming year remains positive, and they have stated that they will continue to focus on further improving their operational efficiencies while continuing to invest in renewable energy sources that will help reduce their carbon footprint. 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 |
| 20.96k | 4.15k | 18.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nextera Energy. More…
| Operations | Investing | Financing |
| 8.26k | -18.36k | 12.23k |
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 |
| 158.94k | 109.5k | 19.44 |
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 |
| 3.0% | -12.4% | 21.1% |
| FCF Margin | ROE | ROA |
| -7.1% | 7.1% | 1.7% |
Analysis – Nextera Energy Stock Fair Value
GoodWhale has conducted an analysis of NEXTERA ENERGY‘s fundamentals, revealing an intrinsic value of around $83.9 per share. This value was determined through GoodWhale’s proprietary Valuation Line, which takes a comprehensive look at a company’s financials, including income statement, balance sheet, and cash flow statement. According to the analysis, the current stock price of NEXTERA ENERGY is undervalued by 8.8%, trading at $76.6 instead of the estimated $83.9. This indicates that the stock is a good buy for investors who are looking for a lucrative opportunity in the energy sector. The Valuation Line tool further provides investors with insights into the potential return of their investment and the risk associated with it. Knowing the intrinsic value of a stock helps investors make informed decisions when it comes to investing in stocks. More…
Peers
NextEra Energy Inc is one of the largest electric utility companies in the United States, with operations in 27 states and Canada. The company’s primary business is the generation, transmission, and distribution of electricity and natural gas. NextEra Energy also owns and operates a number of other businesses, including a renewable energy development company and a nuclear power plant. The company’s competitors include Southern Co, NextEra Energy Partners LP, Consolidated Edison Inc, and a number of other large electric utility companies.
– Southern Co ($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
Investing in Nextera Energy is a potentially profitable endeavor, as the company has reported strong growth in both revenue and net income for the fourth quarter of financial year 2022. Total revenue increased 26.7% year-on-year to USD 1.5 billion, while net income rose 22.0% to USD 6.2 billion. Despite this positive news, the stock price of Nextera Energy dropped on the same day that these results were reported. Investors should consider a variety of factors when evaluating Nextera Energy, such as the company’s competitive position in its industry, its financial health and its outlook for future growth. It is important to note that the company’s strong quarter was likely driven by a surge in demand for its products and services, as well as potential cost savings from operational efficiency initiatives.
Investors should also take into account potential risks associated with investing in the company, such as reliance on certain markets or customer segments and possible legal or regulatory changes that could affect its performance. Overall, Nextera Energy appears to be a strong investment opportunity for those looking for growth potential. With a diversified portfolio of energy services, a strong financial position, and attractive growth prospects, the company appears to be well-positioned for continued success. While there may be risks associated with investing in the company, investors should carefully consider all of the factors before making any decisions.
