Orin
NEENYSE·Regulated Electric

NextEra Energy, Inc. NEE

Market cap $160.7BP/E 17.2× trailingGross margin 71.8%Reports Tue 27 Oct, before the open
$77.03
+0.01 (+0.01%)live 09:40 ET
52-wk $73.59 – $98.75
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Orin's take
0.62conviction · moderate
Refreshed 31 Aug · take v7. A new filing or a print queues the next refresh.

NextEra Energy remains a mixed picture as of fiscal year 2025 — revenue recovered 11% YoY to $27.5B and gross margin expanded to 62.8%, but EPS declined for a second consecutive year to $3.29 (from $3.60 in 2023) while total debt climbed to $95.6B from $73.2B over the same span. The stock at $81.84 trades 13.5% below the peer median P/E of 21.2x and sits in deeply oversold territory (RSI 26.4), yet remains below both its 50-day ($86.93) and 200-day ($87.86) moving averages with a negative MACD histogram.

Smart money has turned slightly negative at -0.0855 as of Q2 2026 (down from +0.1479 in Q1 2026) with fund count dropping from 67 to 63, and two years of contracting EPS alongside a surging debt load argue for patience until an earnings inflection is confirmed.

What could go wrong

  • Debt burden. Total debt reached $95.6B as of FY2025, up from $73.2B in FY2023 — rising interest expense could further pressure EPS, which has already fallen for two consecutive years.
  • EPS erosion. Diluted EPS declined from $3.60 (2023) to $3.37 (2024) to $3.29 (2025), with net income down 1.6% YoY in 2025 despite revenue growth of 11%.
  • Smart money outflows. SM score turned negative at -0.0855 as of Q2 2026 after three consecutive positive quarters, with fund count falling from 67 to 63.
  • Bearish technical trend. Stock at $81.84 trades below both the 50-day ($86.93) and 200-day ($87.86) moving averages; MACD histogram is negative at -0.264 despite RSI at 26.4 suggesting oversold conditions.

What would change my mind

EPS inflection. Next reported full-year or quarterly diluted EPS exceeds $3.29 on a comparable basis, reversing the two-year declinebullish
Debt stabilization. Total debt growth slows materially or management announces deleveraging plan, reducing balance-sheet riskbullish
Smart money reversal. SM score returns to positive territory in the next 13F cycle, indicating renewed institutional convictionbullish
Technical breakdown. Stock breaks decisively below $75 on heavy volume, confirming the downtrend despite oversold readingsbearish

Where this comes from: FMP FY2025 annual + derived_metrics · FMP FY2023 and FY2025 annual · FMP FY2023 and FY2025 annual · Technicals as of 2026-08-28. Orin's read on NEE; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$12.0B0.3% of fund
State Street$10.4B0.3% of fund
Jpmorgan Chase &$10.3B0.6% of fund
Morgan Stanley$5.6B0.3% of fund
Vanguard Portfolio Management$5.5B0.2% of fund
Geode Capital Management$4.4B0.2% of fund

148 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 150 Form 4 filings, net −$963K. Of the 50 on hand, 0 were open-market purchases and 7 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Utilities
MetricNowOwn medianSector
P/E17.2×24.5×25.9×
EV/EBITDA15.1×16.3×
P/S5.54×6.10×
P/B2.8×3.1×

Its P/E sits 20th percentile of its own last 5 years (−1.05σ from its own mean).

What the price assumes

20.2%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

36 firms · 2026-09-23
Consensus target

$102

$91$114 · +33% against today's price

How they rate it
  • 24 buy or overweight
  • 11 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 20.3× of 7 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
NEENextEra Energy, Inc.$161B17.2×15.1×71.8%32.0%17%
AEPAmerican Electric Power Company, Inc.$64B20.3×13.7×49.0%13.9%10%
DDominion Energy, Inc.$54B21.2×14.5×49.3%13.9%9%
DUKDuke Energy Corporation$89B17.1×11.1×68.2%15.7%10%
ETREntergy Corporation$46B25.1×13.8×38.9%13.5%10%
GEVGE Vernova Inc.$254B27.0×28.2×20.2%23.0%83%
SOThe Southern Company$96B20.0×12.0×43.4%15.4%13%
XELXcel Energy Inc.$44B19.3×12.6×48.8%15.3%10%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 15.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 19.0×FY25 24.3×

What its sector has traded at

Utilities
FY14 14.0×FY26 27.4×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$136$85.23 · +60%2026-06-10
Levered DCF$34$85.23 · −60%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $77.03
52-week range$72 – $99
Analyst targets$91 – $114
Standard DCF$136 as of 2026-06-10, when it was $85.23
Levered DCF$34 as of 2026-06-10, when it was $85.23
At own 5y-median P/E (25×)$110
At 5y P/E range (17–51×)$75 – $229
At sector P/E (26×)$116

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.