NextEra Energy, Inc (NEE) – Debt to Equity still on higher side

NextEra Energy, Inc (NEE) (Q2FY23)

Stock Performance: Over the past 3 years, NextEra Energy generated returns of -5% where the stock price decreased from $70.15 on Sep 03, 2020, to $66.2 on Sep 05, 2023. The stock had a 200-Day Moving Average of $76.29 and a 50-day Moving Average of $70.89.

In the past 1 year, NEE delivered returns of -26% where the stock price decreased from $90.27 in Sep 08, 2022 to $66.2 in Sep 05, 2023. The stock had a 52 Week High of $91.06 and a 52 Week Low of $65.81. Over the past 3 months, NEE’s stock price decreased by -9% from $73.59 in Jun 05, 2023 to $66.2 in Sep 05, 2023.

Quarter Performance: In Q2FY23, NEE’s revenue grew by 42% to $7.35bn from $5.18bn in Q2FY22. Net income of the company increased by 103% to $2.79bn from $1.38bn in Q2FY22 and the EPS grew by 97% to $1.38 from $0.7 in Q2FY22.

Guidance: For FY23, NEE expects an adj. EPS in the range of $2.98 to $3.13

Highlights

The debt to equity ratio is 1.61x in Q2FY23 compared to 1.65x in Q1FY23 which we still consider as on the higher side. This indicates the company relies on debt more than equity. Moreover, during Q2FY23, total debt increased 13.5% to $72.17bn compared to $63.6bn in Q2FY22. The huge debt is a headwind for the company as a result of high interest rates.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 32

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