Nextera Energy Intrinsic Value Calculator – Bank of America Downgrades NextEra Energy to Neutral Rating.
February 6, 2023
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Nextera Energy Intrinsic Value Calculator – NEXTERA ($NYSE:NEE): Bank of America recently downgraded the rating on NextEra Energy from Outperform to Neutral, due to its current market position. The company, which is based in Juno Beach, Florida, is one of the largest electric power companies in the United States. It generates electricity from natural gas and other sources, including solar and wind energy. The company also provides energy services, such as energy efficiency and energy storage solutions. The company is well-positioned to benefit from the growth of renewable energy sources, as well as from the increasing demand for energy efficiency solutions. NextEra Energy has built a portfolio of clean energy projects that will help it meet the needs of its customers.
Despite the downgrade, Bank of America still believes that NextEra Energy is a strong investment opportunity and that its stock is likely to continue to outperform the broader market. The company has considerable financial resources and is well-positioned to benefit from the growing demand for renewable energy and energy efficiency solutions. Given the current market conditions, Bank of America has decided to change its rating on NextEra Energy from Outperform to Neutral. Despite this, the company still appears to be a strong investment opportunity and should be able to benefit from the current trends in the energy industry.
Share Price
The stock opened at $75.4 and closed at $75.0, a decrease of 0.7% from the prior closing price of 75.6. This downgrade has caused some investors to question how NextEra Energy will perform in the future. NextEra Energy is an energy company that provides clean, renewable energy to customers across the US and Canada. The company is known for its commitment to sustainability and its commitment to providing energy solutions that are both cost-effective and environmentally friendly. The company has been praised for its commitment to renewable energy sources, as well as its efforts to reduce emissions. Despite the negative news coverage from Bank of America, NextEra Energy has continued to make strides in renewable energy and sustainability.
In addition to investing in wind and solar projects, the company has also invested in energy storage and advanced grid technology. These investments have allowed the company to continue to provide reliable and affordable energy solutions to its customers. While the downgrade from Bank of America may be a temporary setback, it is unlikely to affect the company’s long-term performance. NextEra Energy has a strong foundation in renewable energy sources and is continuing to make strides in sustainability. The company remains committed to providing clean, reliable, and affordable energy solutions to its customers and is expected to remain a leader in the renewable energy space. 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% |
VI Analysis
NEXTERA ENERGY‘s long-term potential can be easily assessed with the help of the VI app. This app simplifies the analysis of the company’s fundamentals, allowing users to conveniently evaluate its potential. Our proprietary VI Line gives a fair value of $83.9 for NEXTERA ENERGY’s share, which is currently traded at $75.0. This suggests that the stock is currently undervalued by 10.6%. The VI app helps investors understand the company’s financials and operational performance, enabling them to make informed decisions in regards to their investments. Its features include a comprehensive overview of the company’s financial statements, a detailed analysis of its balance sheet and income statement, along with insights into its cash flow and ratios. The app also offers a detailed evaluation of the company’s profitability and future prospects, helping investors determine whether the stock is a good investment.
The app also provides valuable insights into the company’s debt structure, helping investors understand its leverage and liquidity position. By providing an in-depth view of the company, investors can identify any potential risks or opportunities associated with their investments. Moreover, the app also assists in evaluating the company’s competitive landscape, allowing investors to compare their performance against other players in the industry. Overall, the VI app makes it easier for investors to analyze NEXTERA ENERGY’s long-term potential. Its simple and comprehensive features allow users to conveniently evaluate the company’s fundamentals and make informed investments decisions.
Peers
NextEra Energy Inc is one of the largest electric utility companies in the United States, with operations in 27 states and Canada. The company’s primary business is the generation, transmission, and distribution of electricity and natural gas. NextEra Energy also owns and operates a number of other businesses, including a renewable energy development company and a nuclear power plant. The company’s competitors include Southern Co, NextEra Energy Partners LP, Consolidated Edison Inc, and a number of other large electric utility companies.
– Southern Co ($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 is an energy company based in Florida, primarily focused on power generation. Recently, Bank of America downgraded the company’s rating to Neutral from Buy, citing rising competition and higher costs as potential risks. Despite this, the stock has seen a mostly positive response from investors, with shares remaining relatively stable since the announcement.
Analysts have noted that NextEra has strong fundamentals, an attractive dividend yield and a diverse portfolio of assets. Many believe the company is well-positioned for growth in the future, though it is wise to remain cautious given the competitive landscape.
