NEXTERA ENERGY INC (NEE) Stock Analysis

Analysis from 10-Q filed 2025-10-28. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.1%. FCF margin 52.5%. D/E 1.9x. Source: 10-Q filed 2025-10-28.

Metric	Value	Context
ROIC	6.1%	Below expectations
FCF Margin	52.5%	Strong cash generation
Debt/Equity	1.9x	Elevated debt

ROIC 6.1% — Top 50% of sector peers. FCF margin 52.5% — Top 5%.

Explore NEXTERA ENERGY INC: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NEE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: NEXTERA ENERGY INC earns 6.1% ROIC, Top 50% in Utilities

ROIC TTM 6.1%, sector median 5.4%, Top 50%. DuPont: NOPAT margin 35.3% × asset turnover 0.1x. Operating margin 32.5%. Source: 10-Q filed 2025-10-28.

Metric	NEE	Rating	Context
Return on Invested Capital (ROIC)	6.1%	Warning	Above sector median of 5.4%
Return on Equity (ROE)	17.1%	Good	Efficient use of shareholder equity
Operating Margin	32.5%	Excellent	Efficient operations

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Cash Flow: NEXTERA ENERGY INC generates $13.8B FCF at 52.5% margin, positive NaN/8 quarters

FCF TTM $13.8B. FCF margin 52.5%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.

Metric	NEE	Rating	Context
Free Cash Flow Margin	52.5%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$13.8B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: NEXTERA ENERGY INC at 1.9x leverage

Debt/Equity 1.9x. Total debt $105.9B, cash & investments $2.9B. Source: 10-Q filed 2025-10-28.

Metric	NEE	Rating	Context
Debt to Equity	1.9x	Warning	Elevated leverage
Net Cash Position	$-103.1B	Warning	Net debt position

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Valuation: NEXTERA ENERGY INC trades at 19.6x earnings

P/E 19.6x. EV/Sales 10.1x. FCF yield 7.6%. Dividend yield 2.7%. Source: 10-Q filed 2025-10-28.

Metric	NEE	Rating	Context
P/E Ratio	19.6x	Adequate	Reasonable valuation
EV/Sales	10.1x	Warning	Growth premium priced in
FCF Yield	7.6%	Good	Attractive cash return
Dividend Yield	2.7%	Adequate	Growth focus over income

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Capital Allocation: NEXTERA ENERGY INC returns 2.7% shareholder yield

Total shareholder yield 2.7% (div 2.7%). Capital returned $4.9B TTM. Source: 10-Q filed 2025-10-28.

Metric	NEE	Rating	Context
Total Shareholder Yield	2.7%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$4.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.1%	Top 50%	1.1x above
Free Cash Flow Margin	52.5%	Top 5%	-
Operating Margin	32.5%	Top 25%	1.5x above
Return on Equity (ROE)	17.1%	Top 5%	1.8x above
P/E Ratio	19.6x	N/A	-

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Financial Scorecard

Metric	NEE	Rating	Sector Context
Return on Invested Capital (ROIC)	6.1%	Warning	Top 50% of sector (median: 5.4%)
Free Cash Flow Margin	52.5%	Excellent	Top 5% of sector (median: 0.0%)
Debt to Equity Ratio	185.4%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	19.6x	Adequate	Fair value
Free Cash Flow Yield	7.6%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is NEXTERA ENERGY INC's Return on Invested Capital (ROIC)?

NEXTERA ENERGY INC (NEE) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.1%. Sector median 5.4%. Source: 10-Q filed 2025-10-28.

Q: What is NEXTERA ENERGY INC's Free Cash Flow Margin?

NEXTERA ENERGY INC (NEE) has a free cash flow margin of 52.5%, generating $13.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-28.

Q: What is NEXTERA ENERGY INC's P/E ratio and how does it compare to peers?

NEXTERA ENERGY INC (NEE) trades at a P/E ratio of 19.6x, which is above the sector median of N/A. EV/Sales 10.1x. FCF yield 7.6%. Source: 10-Q filed 2025-10-28.

Q: Does NEXTERA ENERGY INC pay a dividend?

NEXTERA ENERGY INC (NEE) currently pays a dividend yield of 2.7%. Total shareholder yield (dividend + buybacks) 2.7%. Source: 10-Q filed 2025-10-28.

Q: How much debt does NEXTERA ENERGY INC have?

NEXTERA ENERGY INC (NEE) has a debt-to-equity ratio of 1.9x with total debt of $105.9 billion. Net debt $103.1 billion. Source: 10-Q filed 2025-10-28.

Q: What is NEXTERA ENERGY INC's revenue and earnings growth?

NEXTERA ENERGY INC (NEE) grew revenue by 7.8% year-over-year. EPS +55.3% YoY. Source: 10-Q filed 2025-10-28.

Q: How does NEXTERA ENERGY INC compare to competitors in Utilities?

Compared to other companies in Utilities, NEXTERA ENERGY INC (NEE) shows: ROIC 6.1%, sector median 5.4% (Top 50%). FCF margin 52.5%, sector median 0.0% (Top 5%). These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with NEXTERA ENERGY INC?

Quantitative warning flags for NEXTERA ENERGY INC (NEE): 1) debt/equity 1.9x (above 1.5x threshold). Source: 10-Q filed 2025-10-28.

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Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.