NEXTERA ENERGY INC

NEE

Forward P/E: 18.90×
Mkt cap: 173 B USD
EV: 266 B USD
Sector: Utilities
Coverage: 2007–2025
Currency: USD
Next event: Feb 13, 2027

JP Valuation

JP Score

26,6

Out of profile · window 5 years

JP entry price

OUT OF PROFILE

No target price is issued: the company falls outside the profile this method looks for.

Financial comments6

Interest coverage below 4×.
The share count grows: net dilution.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.
ROIC below the required return: growth destroys value.
Median payout of 146 % of FCF: the dividend yield only counts half in the shareholder-returns modifier.
Impairment of fcf: 26 % of the window, weighted by recency → 3.2 points. It is the only place in the model where a bad year subtracts.

Calculation comments4

The publicado consensus candidate was rejected (nivel_inicial_implausible) and is not used.
The derivado consensus candidate was rejected (nivel_inicial_implausible) and is not used.
No consensus candidate passed the plausibility contract: rather than guess which of the provider's two rows is broken, nothing is written and the cascade drops a rung.
Anomalous financial year(s) in FCF (M4 payout) (2022): out of this component's estimators; they still count in the counters and hard cuts.

Quality factors

Each factor scores 0–100 on its own scale; the score is their weighted average.

Score	Weight → points
Growth consistency32 Earnings · fit to the log-linear line · σ_resid = 0.29122 %0 Earnings · hit rate · 43 %16 %1 Earnings · volatility · σ = 0.42211 %0 Revenue · fit to the log-linear line · σ_resid = 0.05514 %86 Revenue · hit rate · 74 %11 %36 Revenue · volatility · σ = 0.0887 %87 Forward · trajectory coherence · consensus 8.8 % vs. trend 2.2 %20 %50	·20 → 6,48
Growth pace37 Realized · 0.2 %50 %19 Expected · 8.8 %50 %56	·20 → 7,46
No recent stagnation53 Realized slowdown · -9.05×50 %7 Expected slowdown · 39.36×50 %99 3-year earnings CAGR at or below zero (-2.0 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe. Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.	·15 → 7,95
FCF quality4 FCF / net income conversion · 0.46×100 %4 Window chosen: last 3 years (the best of those evaluated). Alternative · last 5 years: conversion 0.26× → 0 points. Positive FCF in 3 of the 3 years in the window.	·15 → 0,63
Debt4 Net debt / EBITDA · 6.25×100 %4 Interest coverage (EBIT / \|interest\|) = 2.2×. Interest coverage below 4×.	·15 → 0,53
Return on invested capital (ROIC)12 Level (recency-weighted mean) · 4.8 %50 %0 Spread over the required return · −0.1 pp over the 10 % required30 %0 Trend · +1.0 pp over 5 years20 %58 Average ROIC (4.8 %) below the required return (10 %): growth destroys value. ROIC below the required return: growth destroys value.	·15 → 1,75
Weighted base	·100 → 24,80

Modifiers and penalties

The factors build the score; the modifiers correct it, within +23 / −28. Same 0–100 bar, 100 is always good.

Score	Range	Points
Gross margin trend · +17.1 pp accumulated over 4 years100	±8	+8,0
Altman Z'' · Z'' = 4.16100	0/−15	0,0
Shareholder returns · dilutes 1.2 % a year0 Effective buyback (net share count) · 1.2 % of dilution0 Dividend yield (last DPS / price today) · 1.4 % · does not count: the active branch is dilution—	+15/−5	-3,0
Impairment · 26 % · worst magnitude: fcf74 Earnings · 0.1 %100 Free cash flow · 26.3 %74 EBITDA · 1.7 %98	0/−12	-3,2
24,8 + 8,0 + 0,0 − 3,0 − 3,2 =26,6

Calculated on Sep 5, 2026

Score

Weight → points

Growth consistency32

Earnings · fit to the log-linear line · σ_resid = 0.29122 %0
Earnings · hit rate · 43 %16 %1
Earnings · volatility · σ = 0.42211 %0
Revenue · fit to the log-linear line · σ_resid = 0.05514 %86
Revenue · hit rate · 74 %11 %36
Revenue · volatility · σ = 0.0887 %87
Forward · trajectory coherence · consensus 8.8 % vs. trend 2.2 %20 %50

·20 → 6,48

Growth pace37

Realized · 0.2 %50 %19
Expected · 8.8 %50 %56

·20 → 7,46

No recent stagnation53

Realized slowdown · -9.05×50 %7
Expected slowdown · 39.36×50 %99
3-year earnings CAGR at or below zero (-2.0 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.

·15 → 7,95

FCF quality4

FCF / net income conversion · 0.46×100 %4
Window chosen: last 3 years (the best of those evaluated).
Alternative · last 5 years: conversion 0.26× → 0 points.
Positive FCF in 3 of the 3 years in the window.

·15 → 0,63

Debt4

Net debt / EBITDA · 6.25×100 %4
Interest coverage (EBIT / |interest|) = 2.2×.
Interest coverage below 4×.

·15 → 0,53

Return on invested capital (ROIC)12

Level (recency-weighted mean) · 4.8 %50 %0
Spread over the required return · −0.1 pp over the 10 % required30 %0
Trend · +1.0 pp over 5 years20 %58
Average ROIC (4.8 %) below the required return (10 %): growth destroys value.
ROIC below the required return: growth destroys value.

·15 → 1,75

Weighted base

·100 → 24,80

Score

Range

Points

Gross margin trend · +17.1 pp accumulated over 4 years100

±8

+8,0

Altman Z'' · Z'' = 4.16100

0/−15

0,0

Shareholder returns · dilutes 1.2 % a year0

Effective buyback (net share count) · 1.2 % of dilution0
Dividend yield (last DPS / price today) · 1.4 % · does not count: the active branch is dilution—

+15/−5

-3,0

Impairment · 26 % · worst magnitude: fcf74

Earnings · 0.1 %100
Free cash flow · 26.3 %74
EBITDA · 1.7 %98

0/−12

-3,2

24,8 + 8,0 + 0,0 − 3,0 − 3,2 =26,6