NYSE · Utilities

NextEra Energy, Inc.

NEE · Utilities - Regulated Electric

$86.75

▲ 1.02 (1.19%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 58.9%

Operating Margin 29.1%

Net Income Margin 32.6%

Fin. Health

F⤢

Years to Pay Off Debt 47.8 yrs

Working Capital vs Long-Term Debt -$105.7B

Working Capital -$11.7B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.28x

Cash Flow

F⤢

Free Cash Flow -$580M

CapEx % of Net Income 146.4%

Owner Earnings $6.8B

Profitability

Gross Profit Margin 58.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 29.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 32.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 47.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$105.7B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$11.7B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$580M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 146.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $6.8B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About NextEra Energy, Inc.

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.

Market Data

Market Cap $180.9B

Enterprise Value $293.6B

P/E (TTM) 22.02

Dividend Yield 2.71%

Exchange NYSE

Key Margins

Gross Profit 58.9%

Operating Margin 29.1%

Net Margin 32.6%

Company Info

Sector Utilities

Industry Utilities - Regulated Electric

Employees 17400

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering NextEra Energy, Inc. at $86.75.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $86.75, the stock trades at a 249% premium to its Graham Number of $24.89. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	58.9%▲	57.4%
Operating Margin %	29.1%▲	23.4%
Net Income %	32.6%▲	23.6%
Diluted EPS	1.04▲	0.73

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$221.4B	$212.7B	N/A
Total Debt	$104.4B▲	$95.6B•	N/A
Working Capital	-$11.7B▼	-$9.2B•	N/A
Years to Pay Debt	47.85	62.29	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$580M▼	$277M•	N/A
Owner Earnings	$6.8B	$5.5B	N/A
CapEx % of Net Income	146.4%	144.8%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	99,600	28,338
Tax Rate For Calcs	0	0
Normalized EBITDA	3,699,000	3,452,000
Total Unusual Items	249,000	166,000
Total Unusual Items Excluding Goodwill	249,000	166,000
Net Income From Continuing Operation Net Minority Interest	2,182,000	1,535,000
Reconciled Depreciation	1,462,000	1,715,000
Reconciled Cost Of Revenue	2,660,000	2,670,000
EBITDA	3,948,000	3,618,000
EBIT	2,486,000	1,903,000
Net Interest Income	-1,287,000	-585,000
Interest Expense	1,287,000	585,000
Normalized Income	2,032,600	1,397,338
Net Income From Continuing And Discontinued Operation	2,182,000	1,535,000
Total Expenses	4,750,000	4,977,000
Total Operating Income As Reported	2,208,000	1,586,000
Diluted Average Shares	2,092,000	2,089,000
Basic Average Shares	2,085,341	2,083,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,182,000	1,535,000
Net Income Common Stockholders	2,182,000	1,535,000
Net Income	2,182,000	1,535,000
Minority Interests	494,000	442,000
Net Income Including Noncontrolling Interests	1,688,000	1,093,000
Net Income Continuous Operations	1,688,000	1,093,000
Tax Provision	-489,000	225,000
Pretax Income	1,199,000	1,318,000
Other Income Expense	535,000	380,000
Other Non Operating Income Expenses	115,000	132,000
Special Income Charges	309,000	114,000
Gain On Sale Of Business	257,000	63,000
Other Special Charges	-52,000	-51,000
Earnings From Equity Interest	171,000	82,000
Gain On Sale Of Security	-60,000	52,000
Net Non Operating Interest Income Expense	-1,287,000	-585,000
Interest Expense Non Operating	1,287,000	585,000
Operating Income	1,951,000	1,523,000
Operating Expense	1,999,000	2,208,000
Other Taxes	628,000	592,000
Depreciation Amortization Depletion Income Statement	1,371,000	1,616,000
Depreciation And Amortization In Income Statement	1,371,000	1,616,000
Gross Profit	3,950,000	3,731,000
Cost Of Revenue	2,751,000	2,769,000
Total Revenue	6,701,000	6,500,000
Operating Revenue	6,701,000	6,500,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	2,085,341	2,083,000
Share Issued	2,085,341	2,083,000
Net Debt	102,405,000	92,807,000
Total Debt	104,403,000	95,619,000
Tangible Book Value	50,072,000	47,992,000
Invested Capital	159,625,000	150,227,000
Working Capital	-11,715,000	-9,233,000
Net Tangible Assets	50,072,000	47,992,000
Common Stock Equity	55,222,000	54,608,000
Total Capitalization	149,170,000	144,164,000
Total Equity Gross Minority Interest	66,632,000	66,479,000
Minority Interest	11,410,000	11,871,000
Stockholders Equity	55,222,000	54,608,000
Gains Losses Not Affecting Retained Earnings	-34,000	-9,000
Other Equity Adjustments	-34,000	-9,000
Retained Earnings	35,984,000	35,102,000
Additional Paid In Capital	19,251,000	19,494,000
Capital Stock	21,000	21,000
Common Stock	21,000	21,000
Total Liabilities Net Minority Interest	154,792,000	146,242,000
Total Non Current Liabilities Net Minority Interest	129,219,000	123,425,000
Other Non Current Liabilities	4,506,000	4,219,000
Derivative Product Liabilities	1,834,000	2,148,000
Non Current Deferred Liabilities	13,106,000	12,359,000
Non Current Deferred Taxes Liabilities	13,106,000	12,359,000
Long Term Debt And Capital Lease Obligation	93,948,000	89,556,000
Long Term Debt	93,948,000	89,556,000
Long Term Provisions	3,730,000	3,669,000
Current Liabilities	25,573,000	22,817,000
Other Current Liabilities	4,324,000	4,311,000
Current Deferred Liabilities	731,000	709,000
Current Deferred Revenue	731,000	709,000
Current Debt And Capital Lease Obligation	10,455,000	6,063,000
Current Debt	10,455,000	6,063,000
Other Current Borrowings	5,095,000	4,108,000
Commercial Paper	5,360,000	1,955,000
Payables And Accrued Expenses	10,063,000	11,734,000
Current Accrued Expenses	4,320,000	4,151,000
Interest Payable	1,393,000	1,185,000
Payables	5,743,000	7,583,000
Accounts Payable	5,743,000	7,583,000
Total Assets	221,424,000	212,721,000
Total Non Current Assets	207,566,000	199,137,000
Other Non Current Assets	11,418,000	9,337,000
Non Current Prepaid Assets	2,922,000	2,868,000
Financial Assets	1,820,000	1,998,000
Investments And Advances	16,696,000	16,482,000
Other Investments	10,707,000	10,954,000
Long Term Equity Investment	5,989,000	5,528,000
Goodwill And Other Intangible Assets	5,150,000	6,616,000
Other Intangible Assets		1,767,000	1,715,000
Goodwill	5,150,000	4,849,000
Net PPE	162,361,000	156,197,000
Accumulated Depreciation	-41,412,000	-40,514,000
Gross PPE	203,773,000	196,711,000
Construction In Progress	28,845,000	24,556,000
Current Assets	13,858,000	13,584,000
Other Current Assets	1,739,000	1,604,000
Hedging Assets Current	1,237,000	997,000
Inventory	2,577,000	2,420,000
Receivables	6,307,000	5,751,000
Other Receivables	2,176,000	1,733,000
Accounts Receivable	4,131,000	4,018,000
Allowance For Doubtful Accounts Receivable	-80,000	-82,000
Gross Accounts Receivable	4,211,000	4,100,000
Cash Cash Equivalents And Short Term Investments	1,998,000	2,812,000
Cash And Cash Equivalents	1,998,000	2,812,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-580,000	277,000
Repurchase Of Capital Stock
Repayment Of Debt	-3,100,000	-3,901,000
Issuance Of Debt	12,362,000	6,449,000
Issuance Of Capital Stock	23,000	10,000
Capital Expenditure	-3,194,000	-2,222,000
Interest Paid Supplemental Data	1,031,000	878,000
End Cash Position	2,475,000	3,006,000
Beginning Cash Position	3,006,000	2,714,000
Effect Of Exchange Rate Changes	-3,000	2,000
Changes In Cash	-528,000	290,000
Financing Cash Flow	7,679,000	3,003,000
Cash Flow From Continuing Financing Activities	7,679,000	3,003,000
Net Other Financing Charges	-306,000	1,626,000
Cash Dividends Paid	-1,300,000	-1,181,000
Common Stock Dividend Paid	-1,300,000	-1,181,000
Net Common Stock Issuance	23,000	10,000
Common Stock Payments
Common Stock Issuance	23,000	10,000
Net Issuance Payments Of Debt	9,262,000	2,548,000
Net Short Term Debt Issuance	4,055,000	-2,799,000
Short Term Debt Payments	0	-1,100,000
Short Term Debt Issuance	4,055,000	-1,699,000
Net Long Term Debt Issuance	5,207,000	5,347,000
Long Term Debt Payments	-3,100,000	-2,801,000
Long Term Debt Issuance	8,307,000	8,148,000
Investing Cash Flow	-10,821,000	-5,212,000
Cash Flow From Continuing Investing Activities	-10,821,000	-5,212,000
Net Other Investing Changes	45,000	69,000
Net Investment Purchase And Sale	-7,672,000	-3,059,000
Sale Of Investment	1,846,000	1,320,000
Purchase Of Investment	-9,518,000	-4,379,000
Net PPE Purchase And Sale	-144,000	-242,000
Purchase Of PPE	-144,000	-242,000
Capital Expenditure Reported	-3,050,000	-1,980,000
Operating Cash Flow	2,614,000	2,499,000
Cash Flow From Continuing Operating Activities	2,614,000	2,499,000
Dividend Received Cfo	100,000	93,000
Change In Working Capital	-590,000	-473,000
Change In Other Current Liabilities	-108,000	-134,000
Change In Other Current Assets	-482,000	-339,000
Other Non Cash Items	95,000	-63,000
Deferred Tax	409,000	913,000
Deferred Income Tax	409,000	913,000
Depreciation Amortization Depletion	1,462,000	1,715,000
Depreciation And Amortization	1,462,000	1,715,000
Depreciation	1,462,000	1,715,000
Operating Gains Losses	-550,000	-672,000
Earnings Losses From Equity Investments	-171,000	-82,000
Gain Loss On Investment Securities	16,000	-600,000
Net Foreign Currency Exchange Gain Loss	-138,000	83,000
Gain Loss On Sale Of Business		-73,000	-65,000
Net Income From Continuing Operations	1,688,000	1,093,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $6.2B ▲ $6.7B +7.3%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 62.6% ▲ 58.9% -3.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 31.2% ▼ 29.1% -2.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 13.3% ▲ 32.6% +19.2pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$6.7B/qtr (≈$26.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.54x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$580M

vs Positive

Operating Cash Flow

$2.6B

Latest quarter · Buffett's cash reality check

ROIC

0.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.7x

Net Assets: $66.6B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Utilities - Regulated Electric. You can manually compare NEE against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.12%

Low — management has little skin in the game

Return on Equity (ROE)

4.0%

Weak — poor returns on equity

Return on Assets (ROA)

1.0%

Poor — assets are not generating adequate returns

Debt Trend YoY

+9.2% YoY

Debt is roughly stable

Leadership Team

John Ketchum

President, CEO & Chairman

Age 54

Pay: $7,241,427

0.332% of net income

Michael Dunne

CFO & Executive VP of Finance

Age 49

Pay: $2,127,377

0.097% of net income

Brian Bolster

President & CEO of NextEra Energy Resources

Age 52

Pay: $2,936,842

0.135% of net income

Mark Hickson

Executive Vice President of Corporate Development & Strategy

Age 57

Nicole Daggs

Executive Vice President of Human Resources & Corporate Services

Age 50

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.58%	178,829,484
Vanguard Capital Management LLC	6.49%	135,383,754
State Street Corporation	5.74%	119,667,918
JPMORGAN CHASE & CO	5.37%	111,988,240
Morgan Stanley	3.11%	64,751,882
Vanguard Portfolio Management LLC	2.90%	60,413,784
Geode Capital Management, LLC	2.32%	48,320,084
Franklin Resources, Inc.	2.23%	46,529,576

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.67

Low volatility — more stable than the market

Short Interest

0.0% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.57x

Moderate leverage

Current Ratio

0.54x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $67.20 Current: $86.75 High: $98.75

Currently at 62% of 52-week range

NextEra Energy, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis