Should You Invest in NextEra Energy Inc in the Regulated Electric Industry?
November 2, 2023
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NEXTERA ($NYSE:NEE): Investing in NextEra Energy Inc (NEE) is a great option for those interested in the regulated electric industry. Their portfolio includes natural gas, nuclear, solar, wind, hydro, and other renewable energy sources. As a result of their diversified portfolio, NEE is able to provide reliable energy at competitive prices. NEE has seen strong financial performance in recent years. Their stock price has more than doubled in the last five years and they have delivered consistent returns to shareholders. Furthermore, their dividend yield is above industry average. As a result, investors looking for stability and long-term growth potential should consider investing in NEE. Moreover, NEE is committed to sustainability and is transitioning to a clean energy future. They are actively investing in renewable energy sources to reduce emissions and improve air quality.
Additionally, their long-term contracts with utilities and other customers provide stability and visibility into their future cash flows. With its strong financial performance, commitment to sustainability, and access to a diversified portfolio of energy sources, it is an attractive investment opportunity.
Share Price
On Wednesday, NEXTERA ENERGY stock opened at $58.1 and closed at $58.4, reflecting a 0.2% increase from last closing price of 58.3. This suggests that over the recent period, the stock has exhibited a moderate degree of momentum, providing potential investors with an optimistic outlook on the company’s future prospects. Additionally, given the regulated nature of the industry, investors may be able to anticipate a consistent angle of growth over the coming years. 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
As GoodWhale, we have conducted an analysis of NEXTERA ENERGY‘s wellbeing. Our Star Chart assessment of NEXTERA ENERGY provides an intermediate health score of 6 out of 10, indicating that it is likely to survive any crisis without the risk of bankruptcy. Upon closer examination, we can see that NEXTERA ENERGY is strong in dividend and growth, but it is only medium in profitability and weak in asset. We classify NEXTERA ENERGY as a ‘cheetah’, which is a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its characteristics of high dividend and growth, yet lower stability, investors who are looking for a high-risk, high-reward play may be interested in NEXTERA ENERGY. They may find that the potential rewards are worth the risk associated with this type of investment. 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 Inc is a leading U.S. power utility company headquartered in Juno Beach, Florida. It is one of the largest generators of renewable energy in the U.S. and has strong fundamentals, a solid financial position, and a track record of consistent earnings growth. The company has attractive dividend yields and a diversified portfolio of power generation assets that should provide a reliable source of income for investors.
NextEra’s focus on renewable energy has also resulted in strong environmental performance and a commitment to sustainability. As a result, investing in NextEra Energy can be an attractive option for investors looking for long-term growth and income.
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