NextEra Story

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NEE -- USA Stock  

USD 75.13  0.84  1.11%

NextEra Energy is scheduled to announce its earnings today. The next earnings report is expected on the 22nd of January 2021. The stock just had it stock split. NextEra Energy has reported 4 for 1 split on 27th of October 2020. NextEra Energy Market Capitalization is projected to increase significantly based on the last few years of reporting. The past year's Market Capitalization was at 118.36 Billion. The current year Interest Coverage is expected to grow to 3.29, whereas Revenue Per Employee is forecasted to decline to about 1.2 M. While some baby boomers are getting worried about utilities space, it is reasonable to digest NextEra Energy as an investment alternative.
Published over a month ago
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Should I short my NextEra (NYSE:NEE) position?
The company has 46.54 B in debt with debt to equity (D/E) ratio of 1.11, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NextEra Energy has an asset utilization ratio of 23.01 percent. This indicates that the company is making $0.23 for each dollar of assets. An increasing asset utilization means that NextEra Energy is more efficient with each dollar of assets it utilizes for everyday operations.
NextEra Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of NextEra Energy, including all of NextEra Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of NextEra Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall NextEra Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding NextEra Total Liabilities

NextEra Energy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. NextEra Energy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on NextEra Energy balance sheet include debt obligations and money owed to different NextEra Energy vendors, workers, and loan providers. Below is the chart of NextEra short long-term liabilities accounts currently reported on its balance sheet.
You can use NextEra Energy financial leverage analysis tool to get a better grip on understanding its financial position

How important is NextEra Energy's Liquidity

NextEra Energy financial leverage refers to using borrowed capital as a funding source to finance NextEra Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NextEra Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between NextEra Energy's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for NextEra Energy, but it might be worth checking our own buy vs. sell analysis

What is driving NextEra Energy Investor Appetite?

NextEra Energy reported the last year's revenue of 18.98 B. Total Income to common stockholders was 3.55 B with profit before taxes, overhead, and interest of 11.29 B.

Asset Breakdown

Total Assets96.07 Billion
Current Assets6.56 Billion
Assets Non Current99.68 Billion
Goodwill3.69 Billion
Tax Assets722.14 Million

NextEra Energy is projected to stay under $305 in November

Latest Information Ratio is up to 0.03. Price may dip again. As of the 21st of October, NextEra Energy secures the Downside Deviation of 1.49, risk adjusted performance of 0.0826, and Mean Deviation of 1.16. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of NextEra Energy, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for NextEra Energy, which can be compared to its peers in the industry. Please verify NextEra Energy jensen alpha, semi variance, and the relationship between the standard deviation and value at risk to decide if NextEra Energy is priced some-what accurately, providing market reflects its recent price of 298.72 per share. Given that NextEra Energy has jensen alpha of 0.1233, we recommend you to check NextEra Energy's last-minute market performance to make sure the company can sustain itself at a future point.

Our Takeaway on NextEra Energy Investment

Although many other companies in the utilities?regulated electric industry are either recovering or due for a correction, NextEra Energy may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NextEra Energy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of NextEra Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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