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NEENextEra Energy, Inc.
$86.95$181.4B
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  1. Home
  2. Financial Ratios

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  3. NEE
  4. Financial Ratios

NextEra Energy, Inc. (NEE) Financial Ratios

Latest Ratios: P/E Ratio 15.7x · EV/EBITDA 17.8x · ROE 10.7%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

NEE Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$181.4B$167.7B$147.6B$123.4B$165.4B$184.1B$151.9B$117.6B$83.1B$73.9B$55.7B
Enterprise Value$274.2B$260.5B$228.5B$193.9B$228.8B$238.3B$198.9B$159.6B$120.2B$107.2B$85.2B
P/E Ratio →15.6724.4021.2716.8739.8951.5352.1331.2112.5213.7519.15
P/S Ratio6.226.105.964.397.8910.798.446.124.974.303.45
P/B Ratio2.732.522.432.093.354.033.382.842.222.502.20
P/FCF———————————
P/OCF14.5313.4311.1310.9220.0224.3819.0314.4212.6011.528.79

P/E links to full P/E history page with 30-year chart

NEE EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—9.489.236.9010.9213.9611.058.317.186.255.28
EV / EBITDA17.8517.1217.2511.8325.7933.4421.0916.2314.2613.7310.81
EV / EBIT33.1128.6227.6218.2751.7953.6145.5826.2213.5817.2415.56
EV / FCF———————————

NEE Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin62.8%62.8%60.1%63.9%48.4%50.2%59.5%58.3%57.8%56.2%53.4%
Operating Margin30.1%30.1%30.2%36.4%19.5%17.1%28.4%27.9%25.6%30.1%27.6%
Net Profit Margin24.9%24.9%28.1%26.0%19.8%20.9%16.2%19.6%39.7%31.3%18.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE10.7%10.7%11.6%13.5%8.7%7.9%6.8%9.6%19.8%19.6%12.0%
ROA3.4%3.4%3.8%4.3%2.8%2.7%2.4%3.4%6.6%5.7%3.4%
ROIC4.1%4.1%4.1%6.3%2.9%2.3%4.4%5.1%4.7%6.6%6.2%
ROCE4.7%4.7%4.8%7.3%3.2%2.5%4.7%5.6%5.0%6.2%5.9%

NEE Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.441.441.351.241.311.201.071.031.011.191.22
Debt / EBITDA6.286.286.224.477.327.695.104.334.484.493.91
Net Debt / Equity—1.401.331.191.281.191.051.020.991.131.17
Net Debt / EBITDA6.106.106.114.307.147.604.984.274.404.273.75
Debt / FCF———————————
Interest Coverage1.991.993.703.197.553.502.242.715.913.994.99

NEE Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.600.600.470.550.510.530.470.530.360.640.68
Quick Ratio0.490.490.380.470.430.440.370.440.290.520.56
Cash Ratio0.120.120.060.100.060.040.070.040.040.150.12
Asset Turnover—0.130.130.160.130.120.140.160.160.180.18
Inventory Turnover4.224.224.474.815.595.454.706.035.775.915.83
Days Sales Outstanding———————————

NEE Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.6%2.8%2.9%3.1%2.0%1.6%1.8%2.0%2.5%2.5%2.9%
Payout Ratio68.5%68.5%61.0%51.7%80.8%84.6%94.0%63.9%31.7%34.3%55.4%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield6.4%4.1%4.7%5.9%2.5%1.9%1.9%3.2%8.0%7.3%5.2%
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.1%0.0%0.0%0.0%0.0%
Total Shareholder Yield2.6%2.8%2.9%3.1%2.0%1.6%1.9%2.0%2.5%2.5%2.9%
Shares Outstanding—$2.1B$2.1B$2.0B$2.0B$2.0B$2.0B$1.9B$1.9B$1.9B$1.9B

Key Metrics

Growth RegimeExpanding
ProfitabilityStrong
Balance SheetAdequate
Cash FlowBurning
Top Statement Risk

Leverage near regulatory capital structure limits

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Earned ROE Volatility Obscures Regulatory Benchmark

Quarterly ROE climbed to 6.7% in 2026Q3 from 2.3% in 2025Q4, a swing that on a non-annualized basis suggests underlying earned returns are tracking near but not clearly above the authorized return; per NEE's quarterly ratio disclosures, consistency matters more than the peak.

The reported quarterly ROE series ranges from 1.4% in 2025Q1 to 6.7% in 2026Q3, which makes direct comparison with a regulatory allowed return of the typical 9–10% magnitude difficult, since quarterly figures are unannualized and contaminated by non-recurring items. This pattern appears more consistent with earnings that include AFUDC credits and hedge or tax-credit effects than with a steady stream of authorized earnings from rate base. For an analyst, the constructive regulatory read-through would require seeing earned ROE hold near the upper end of this range across consecutive quarters, which the data does not yet demonstrate.

Fuel Pass-Through Inflates Margin Optics

Operating margin of 32.4% in 2026Q3 sits well above the 24–29% levels recorded in most prior quarters, based on NEE's reported ratio table, likely reflecting revenue-side fuel recovery swings rather than a durable improvement in unit O&M efficiency.

The volatility pattern — margins compressing to 17.5% in 2024Q4 before recovering to 36.1% in 2025Q1 — appears inconsistent with a stable cost structure and more plausibly reflects pass-through fuel and purchased power recoveries moving the top line independently of earnings power. Because fuel is largely recoverable under FPL's Florida regulatory framework, this margin spread over regulated peers such as Duke and Southern should be interpreted as a revenue-mix artifact rather than operating outperformance. Investors should monitor whether margins settle into a narrower band, which would signal that rate base growth, not commodity recovery, is driving the trend.

Capital Structure Drifts Above Typical Bounds

Debt-to-capital held at 0.61 in 2026Q3 versus 0.58 two years earlier, per NEE's quarterly filings, while interest coverage of 1.61x marks a sharp step down from the 6.21x recorded one quarter earlier, and FFO/debt of 2.22x indicates modest cash coverage.

A debt-to-capital ratio near 61% places NEE toward the higher end of what regulated jurisdictions typically tolerate, and if regulators scrutinize the capital mix in future rate cases, a portion of the equity component could be disallowed as used-and-useful, compressing the return on rate base. The interest coverage swings — from 0.44x in 2024Q4 to 6.21x in 2026Q2 and back to 1.61x — suggest the metric is distorted by AFUDC and non-cash items rather than reflecting genuine coverage deterioration, but the low readings warrant investigation. The current ratio remaining below 1.0 throughout the ten-quarter window appears to reflect normal utility construction financing, though it does leave the balance sheet dependent on continued market access.

Dividend Covered but Payout Optics Volatile

Dividend payout swung from 140.0% in 2025Q1 to 27.4% in 2026Q3 per NEE's reported ratios, reflecting earnings volatility rather than dividend policy change, with the quarterly distribution fully covered by operating cash flow throughout the period.

The distribution of roughly $1.1B–$1.3B per quarter has remained covered in every period, which supports the view that the dividend itself is not at risk even when the payout ratio prints above 100%. However, because the payout ratio is anchored to volatile GAAP earnings rather than cash generation, it provides limited signal about NEE's capacity to self-fund the multi-billion-dollar capital program. Given that capital spending has at points exceeded operating cash flow by a wide margin, the dividend's quality ultimately rests on continued external financing access rather than internal generation, which investors should weigh against the rising debt-to-capital ratio.

Growth Premium Embedded in P/E and P/B

At a 24.95x trailing P/E and 2.58x book, NEE trades above Duke Energy's 19.81x and 1.83x per peer comparables, implying the market is capitalizing renewable-driven growth that has yet to show up as consistently higher earned ROE.

The 2.7% dividend yield sits at the low end of the peer group — below Duke at 3.4% and Exelon at 3.6% — which confirms the market is pricing NEE as a growth compounder rather than an income vehicle, consistent with the regulatory-compact logic that lower yields attach to higher perceived growth durability. The forward P/E of 20.40x against a trailing 24.95x implies consensus expects roughly 20% earnings growth, an expectation that appears ambitious given the Q2 2026 EPS miss against consensus and the PEG ratio of 1.44. This premium appears justified only if the renewable backlog converts to rate base on schedule and the Florida regulatory environment remains constructive; slippage on either front could compress the multiple toward the mid-teens levels at which Exelon trades.

Payout Ratio Distorted by AFUDC and Hedges

The 140.0% payout recorded in 2025Q1 appears alarming yet reversed to 27.4% within six quarters per NEE's ratio table, showing the metric tracks AFUDC accruals and hedge mark-to-market swings rather than true dividend capacity available to investors.

Dividend payout and interest coverage computed from GAAP earnings are the ratios most commonly misapplied to NEE, because the denominator embeds non-cash AFUDC credits during heavy construction periods, mark-to-market movements on NEER's energy hedges, and tax-credit effects that do not correspond to distributable cash. What this obscures is a straightforward reality: the dividend was covered by operating cash flow in all ten quarters, and the headline coverage alarms in 2025Q1 say more about accounting treatment than solvency. The superior analytical approach is to anchor coverage in operating cash flow per dollar of dividends and to evaluate FFO/debt alongside the regulatory capital structure target, rather than relying on earnings-based payout or P/E comparisons drawn from industrial frameworks.

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Includes 30+ ratios · 30 years · Updated daily

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NEE — Frequently Asked Questions

Quick answers to the most common questions about buying NEE stock.

What is NextEra Energy, Inc.'s P/E ratio?

NextEra Energy, Inc.'s current P/E ratio is 15.7x. The historical average is 19.9x. This places it at the 40th percentile of its historical range.

What is NextEra Energy, Inc.'s EV/EBITDA?

NextEra Energy, Inc.'s current EV/EBITDA is 17.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.6x.

What is NextEra Energy, Inc.'s ROE?

NextEra Energy, Inc.'s return on equity (ROE) is 10.7%. The historical average is 12.3%.

Is NEE stock overvalued?

Based on historical data, NextEra Energy, Inc. is trading at a P/E of 15.7x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is NextEra Energy, Inc.'s dividend yield?

NextEra Energy, Inc.'s current dividend yield is 2.58% with a payout ratio of 68.5%.

What are NextEra Energy, Inc.'s profit margins?

NextEra Energy, Inc. has 62.8% gross margin and 30.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does NextEra Energy, Inc. have?

NextEra Energy, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.