# Nextera Energy (NEE.US)

Canonical: https://gigainvestors.com/s/NEE

Analysis as of: 2026-10-16T07:30:34.022Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $78.96 per share; close as of 2026-10-15.

Estimated value: low $33.65 per share, central $41.61 per share, high $48.40 per share. Buy at or below the central value $41.61 per share. Valuation as of 2026-10-16T07:30:34.022Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.30×

- FY2018: 0.26×

- FY2019: 0.28×

- FY2020: 0.28×

- FY2021: 0.23×

- FY2022: 0.19×

- FY2023: 0.36×

- FY2024: 0.30×

- FY2025: 0.30×

- LTM to Jun 2026: 0.29×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.7%

- ROIC, second-lowest year: 4.0%

- Typical minus recent gross margin: -3.9 pp

- Typical gross margin (annual median): 58.9%

- Recent gross margin (lower of latest and 3-year median): 62.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 36.5%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.5%

- FY2018: 4.8%

- FY2019: 6.3%

- FY2020: 6.3%

- FY2021: 4.0%

- FY2022: 3.5%

- FY2023: 7.8%

- FY2024: 5.6%

- FY2025: 5.8%

- LTM to Jun 2026: 5.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $22B

- Net income, five-year total: $29B

- Return on incremental invested capital: 15.8%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.4 pp

- Working capital / revenue, final three-year average: 0.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.01×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.60×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.8% vs 5.8%

- Per-share earnings: 1.56 to 3.37 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.3%

- Ordinary dilution, 5-year annual growth: 1.0%

- Market cap gain: $111B

- Cumulative retained earnings: $20B

- Diluted shares, 10-year annual growth: 1.3%

- Diluted shares, 5-year annual growth: 1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.1%

- Per-share value change: $1.81

- Per-share value, starting three-year median: $1.56

- Per-share value, ending three-year median: $3.37

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: $7.2B

- Cumulative net income, 10 years: $50B

- ROIC, first three-year median: 5.8%

- ROIC, last three-year median: 5.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.56

- FY2017: $2.85

- FY2018: $3.48

- FY2019: $1.94

- FY2020: $1.48

- FY2021: $1.81

- FY2022: $2.10

- FY2023: $3.60

- FY2024: $3.37

- FY2025: $3.30

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.83×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.16×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.8%

- FY2017: -1.1%

- FY2018: 0.0%

- FY2019: -3.7%

- FY2020: -4.0%

- FY2021: -2.8%

- FY2022: -2.6%

- FY2023: -2.2%

- FY2024: -3.3%

- FY2025: -2.7%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Katz](https://gigainvestors.com/MAVFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 11.3% a year for ten years · sales +5.6%

Story as of 2026-10-16T09:59:14.969Z; price observation 2026-10-15.

Price needs cash profits to grow 11.3% a year for ten years

- 2025-07-23: NextEra beats quarterly profit estimates on massive power demand ([investing.com](https://www.investing.com/news/stock-market-news/nextera-energy-beats-quarterly-profit-estimates-4148063))

- 2025-08-27: NextEra Energy wins FERC approval for nuclear restart of Iowa's Duane Arnold plant ([seekingalpha.com](https://seekingalpha.com/news/4489708-nextera-energy-wins-ferc-approval-for-nuclear-restart-of-iowas-duane-arnold-plant?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-29: NextEra Energy Taps AI Data Center Power Demand With Hyperscaler Deals ([finance.yahoo.com](https://finance.yahoo.com/news/nextera-energy-taps-ai-data-021715772.html))

- 2026-02-04: NextEra Energy Targets AI Data Center Growth With Xcel Partnership And Premium Valuation ([finance.yahoo.com](https://finance.yahoo.com/news/nextera-energy-targets-ai-data-201830379.html))

- 2026-04-24: NextEra Energy Expands Gas And Nuclear Options After Earnings Beat ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/nextera-energy-expands-gas-nuclear-001500161.html))

- 2026-05-18: NextEra slides 5% on Dominion megadeal but will shore up credit profile ([seekingalpha.com](https://seekingalpha.com/news/4594629-nextera-slides-5-on-dominion-megadeal-but-will-shore-up-credit-profile?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5.6%; source https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm; observed 2026-02-13.

- FY2017: $17B 

- FY2018: $17B 

- FY2019: $19B 

- FY2020: $18B 

- FY2021: $17B 

- FY2022: $21B 

- FY2023: $28B 

- FY2024: $25B 

- FY2025: $27B 

- FY2026: $29B 

### Gross margin · FY2026

gross margin 71.8%; source https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm; observed 2026-02-13.

- FY2017: 56.2% 

- FY2018: 57.8% 

- FY2019: 58.3% 

- FY2020: 59.5% 

- FY2021: 50.3% 

- FY2022: 48.4% 

- FY2023: 63.9% 

- FY2024: 60.1% 

- FY2025: 62.8% 

- FY2026: 71.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are USD 27.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm (filed 2026-02-13); FY2025: revenue 27476000000; grossProfit 17255000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NEE.US: NextEra Energy, Inc., through its subsidiaries, generates, stores, transmits, distributes, and sells electric power to retail and wholesale customers in North America. It operates through Florida Power & Light Company (FPL) and NEER segments. The company generates electricity from wind, solar, nuclear, natural gas, and other clean energy assets. It also invests in generation, storage, transmission, and distribution facilities; owns, develops, constructs, manages, and operates generation facilities, including renewables, nuclear and natural gas, and battery storage facilities in the wholesale energy market in the United States and Canada, as well as electric and gas transmission assets, and natural gas pipelines; provides full energy and capacity requirement services; markets and trades in energy-related commodities; and participates in the production of natural gas, natural gas liquids, and oil. As of December 31, 2025, the company had approximately 35,963 megawatts of net generating capacity; approximately 93,000 circuit miles of transmission and distribution lines; and 932 substations. It serves approximately 12 million people through approximately 6 million customer accounts on the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.

### Why customers stay

Margins ranged from 60.1% to 63.9% during 2023–25; it earns 5.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 63.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 60.1%.

- Source: https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 62.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2017,0.08502769605023094],[2018,0.047812710383406676],[2019,0.06321983468105907],[2020,0.06338206797643227],[2021,0.04001041183142149],[2022,0.03536855160446552],[2023,0.07815846527603024],[2024,0.05598802624967198],[2025,0.05807836370523126],[2026,0.053727127208813286]]; median 0.05703319497745162. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 34.1% of cash earnings on expansion; earns 15.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 4240000000; owner earnings 2100000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 2807000000; upkeep 2638000000; owner earnings 5380000000. Growth capex / owner earnings = 0.5217472118959108.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 6010000000; owner earnings 4775000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 6599000000; upkeep 4478000000; owner earnings 3769000000. Growth capex / owner earnings = 1.7508622976916954.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 4869000000; upkeep 4873000000; owner earnings 4147000000. Growth capex / owner earnings = 1.1741017603086568.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 3397000000; upkeep 6151000000; owner earnings 7310000000. Growth capex / owner earnings = 0.4647058823529412.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 8514000000; owner earnings 4193000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm (filed 2026-02-13); FY2025: growth capex 2333000000; upkeep 6941000000; owner earnings 6834000000. Growth capex / owner earnings = 0.34138132865086335.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Incremental return on capital 0.15811480833722302, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,1612000000],[2017,1845000000],[2018,2101000000],[2019,2408000000],[2020,2743000000],[2021,3024000000],[2022,3352000000],[2023,3782000000],[2024,4235000000],[2025,4680000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NEE.US SharesStats.PercentInsiders = 0.117 percentage points; cache date 2026-10-16.

### What could break it

"Changes in tax laws, guidance or policies" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm (filed 2026-02-13); Changes in tax laws, guidance or policies

### What the price says

The price assumes cash profits grow 11.3% yearly over ten years; actual growth was 8.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.1494043508758781. Price 78.96; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.5154185022026432 → FY2025 3.3004926108374386. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $32.00 per share

- 2016-11: $28.56 per share

- 2016-12: $29.87 per share

- 2017-01: $30.93 per share

- 2017-02: $32.75 per share

- 2017-03: $32.09 per share

- 2017-04: $33.39 per share

- 2017-05: $35.36 per share

- 2017-06: $35.03 per share

- 2017-07: $36.52 per share

- 2017-08: $37.63 per share

- 2017-09: $36.64 per share

- 2017-10: $38.77 per share

- 2017-11: $39.51 per share

- 2017-12: $39.05 per share

- 2018-01: $39.61 per share

- 2018-02: $38.04 per share

- 2018-03: $40.83 per share

- 2018-04: $40.98 per share

- 2018-05: $41.45 per share

- 2018-06: $41.76 per share

- 2018-07: $41.89 per share

- 2018-08: $42.53 per share

- 2018-09: $41.90 per share

- 2018-10: $43.13 per share

- 2018-11: $45.43 per share

- 2018-12: $43.46 per share

- 2019-01: $44.75 per share

- 2019-02: $46.93 per share

- 2019-03: $48.33 per share

- 2019-04: $48.61 per share

- 2019-05: $49.55 per share

- 2019-06: $51.22 per share

- 2019-07: $51.79 per share

- 2019-08: $54.77 per share

- 2019-09: $58.25 per share

- 2019-10: $59.59 per share

- 2019-11: $58.46 per share

- 2019-12: $60.54 per share

- 2020-01: $67.05 per share

- 2020-02: $63.19 per share

- 2020-03: $60.16 per share

- 2020-04: $57.78 per share

- 2020-05: $63.89 per share

- 2020-06: $60.04 per share

- 2020-07: $70.18 per share

- 2020-08: $69.79 per share

- 2020-09: $69.39 per share

- 2020-10: $73.21 per share

- 2020-11: $73.59 per share

- 2020-12: $77.15 per share

- 2021-01: $80.87 per share

- 2021-02: $73.48 per share

- 2021-03: $75.61 per share

- 2021-04: $77.51 per share

- 2021-05: $73.22 per share

- 2021-06: $73.28 per share

- 2021-07: $77.90 per share

- 2021-08: $83.99 per share

- 2021-09: $78.52 per share

- 2021-10: $85.33 per share

- 2021-11: $86.78 per share

- 2021-12: $93.36 per share

- 2022-01: $78.12 per share

- 2022-02: $78.27 per share

- 2022-03: $84.71 per share

- 2022-04: $71.02 per share

- 2022-05: $75.69 per share

- 2022-06: $77.46 per share

- 2022-07: $84.49 per share

- 2022-08: $85.06 per share

- 2022-09: $78.41 per share

- 2022-10: $77.50 per share

- 2022-11: $84.70 per share

- 2022-12: $83.60 per share

- 2023-01: $74.63 per share

- 2023-02: $71.03 per share

- 2023-03: $77.08 per share

- 2023-04: $76.63 per share

- 2023-05: $73.46 per share

- 2023-06: $74.20 per share

- 2023-07: $73.30 per share

- 2023-08: $66.80 per share

- 2023-09: $57.29 per share

- 2023-10: $58.30 per share

- 2023-11: $58.51 per share

- 2023-12: $60.74 per share

- 2024-01: $58.63 per share

- 2024-02: $55.19 per share

- 2024-03: $63.91 per share

- 2024-04: $66.97 per share

- 2024-05: $80.02 per share

- 2024-06: $70.81 per share

- 2024-07: $76.39 per share

- 2024-08: $80.51 per share

- 2024-09: $84.53 per share

- 2024-10: $79.25 per share

- 2024-11: $78.67 per share

- 2024-12: $71.69 per share

- 2025-01: $71.56 per share

- 2025-02: $70.17 per share

- 2025-03: $70.89 per share

- 2025-04: $66.88 per share

- 2025-05: $70.64 per share

- 2025-06: $69.42 per share

- 2025-07: $71.06 per share

- 2025-08: $72.05 per share

- 2025-09: $75.49 per share

- 2025-10: $81.40 per share

- 2025-11: $86.29 per share

- 2025-12: $80.28 per share

- 2026-01: $87.90 per share

- 2026-02: $93.77 per share

- 2026-03: $92.88 per share

- 2026-04: $97.88 per share

- 2026-05: $87.01 per share

- 2026-06: $87.77 per share

- 2026-07: $86.92 per share

- 2026-08: $82.34 per share

- 2026-09: $75.74 per share

- 2026-10: $78.22 per share

## Annual estimated value (USD per share)

- FY2016: low $12.84 per share, central $14.54 per share, high $16.80 per share

- FY2017: low $15.11 per share, central $17.09 per share, high $19.73 per share

- FY2018: low $15.24 per share, central $17.32 per share, high $20.09 per share

- FY2019: low $21.47 per share, central $24.61 per share, high $28.58 per share

- FY2020: low $19.92 per share, central $22.62 per share, high $26.22 per share

- FY2021: low $18.69 per share, central $21.25 per share, high $24.66 per share

- FY2022: low $24.54 per share, central $29.55 per share, high $34.35 per share

- FY2023: low $34.22 per share, central $43.76 per share, high $51.01 per share

- FY2024: low $23.95 per share, central $28.85 per share, high $33.54 per share

- FY2025: low $32.12 per share, central $39.71 per share, high $46.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:17.846Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/753308/000075330826000015/nee-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.