MARKET

NEE

NEE

NextEra
NYSE

Real-time Quotes | Nasdaq Last Sale

75.13
-0.84
-1.11%
After Hours: 75.00 -0.13 -0.17% 15:59 11/27 EST
OPEN
76.05
PREV CLOSE
75.97
HIGH
76.13
LOW
74.70
VOLUME
3.67M
TURNOVER
--
52 WEEK HIGH
83.34
52 WEEK LOW
43.70
MARKET CAP
147.19B
P/E (TTM)
37.69
1D
5D
1M
3M
1Y
5Y
News
Financial
Releases
Corp Actions
Analysis
Profile
Five Energy Stocks To Buy Before Christmas
The year is coming to an end, and bullish news is mounting for the energy industry, presenting an array of juicy deals to watch this holiday season
Oilprice.com · 11h ago
NextEra Energy Is On a Path to Acquire Another Utility With Its Shares
NextEra Energy (NYSE:NEE) is clearly on a warpath to acquire or merge with another utility as news emerged recently about a recent bid. If successful, one effect this will have will be to justify the high valuation of NEE stock. Source: madamF / Shutterstock.com Investors should take note of this situation, as I pointed out in my last article, where I showed how high the stock is trading in terms of valuation metrics. Not only has NextEra Energy made a bid for Duke Energy (NYSE:DUK) and was turned down, but Reuters recently reported on Nov. 9 that NextEra made another bid. NextEra made an all-stock acquisition offer for Evergy, Inc (NYSE:EVRG) which has a market capitalization of about $12 billion today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips However, at the time NextEra’s bid was apparently for $15 billion, including a premium. Nevertheless, Evergy’s board reportedly turned down the offer. This upset one of Evergy’s large institutional shareholders, Elliott Management Corp. On Nov. 10, they put out a statement that urged Evergy’s board to “immediately reengage with NextEra and fully explore” a deal. NextEra’s Valuation Dilemma As I pointed out in my last article, NEE stock trades at a significant premium to its peers. This is partly from its continuing earnings growth from its Florida Power & Light subsidiary as well as its considerable investments in renewable energy. 10 Best Stocks to Buy for Investors Under 30 For example, on Oct. 21, NextEra Energy reported that its Q3 adjusted earnings per share (EPS) grew 11.3% to $66.5 cents per share. This is after a recent four-for-one-stock split that took effect on Oct. 27. Moreover, the company gave forecasts for both its 2020 and 2021 adjusted EPS. These range from $2.18 to $2.30 for 2020 and $2.40 to $2.54 for 2021. Therefore, using a midpoint for each of these forecasts, NEE stock at $74.64 (Nov. 23) trades at 33 times expected $2.24 for 2020. And for 2021 its trades at 30.2 times adjusted earnings. This is a good deal higher than the typical utility stock, as I mentioned last time. As a result, the company is looking to use its highly-priced shares to purchase lower price-to-earnings (P/E) companies. How Using a High P/E Stock In an Acquisition Increases EPS We can illustrate why NextEra Energy is so keen to use its shares to acquire another company. The fundamental reason is that a high P/E stock purchase leads to higher EPS. Let’s say there are two companies both making $1 million and both have 1 million shares outstanding. Therefore they both have an EPS of $1. But Company A is valued at 100 times earnings, so its stock is worth $100 million but Company B has a 10 times P/E, so its market value is $10 million. Now if Company A buys B using its stock it only has to issue $10 million worth of shares. Therefore, it will issue 100,000 shares (i.e., 100K times $100 per share equals $10 million, the market value of Company B). Now there are $2 million in earnings from the combination, but the number of shares outstanding is only 1.1 million. As a result, the earnings per share is now $1.818, or an increase of 81.8% from $1.00 EPS before the combination. So using the high P/E shares leads to a huge increase in earnings per share. It also lowers the P/E. Assuming the stock price stays the same, $100 divided by $1.818 lowers the P/E to about 55 times earnings from 100 times. That makes the stock more attractive and would likely push it up. Compare that to the situation where Company A and B both had the same P/E and therefore the same market value. Now there are $2 million in earnings, but there are also 2 million shares outstanding to complete the merger. Therefore the EPS stays the same at $1.00. What to Do With NEE Stock This is why NextEra wants to use its higher than average P/E to acquire lower P/E energy companies. The problem is that its P/E is not substantially higher than its peers. For example, I recently wrote about Nvidia (NASDAQ:NVDA) and its purchase of the semiconductor company ARM using its high P/E shares. Nvidia has a much higher P/E ratio stock, more than 50 times on a forward basis. This is because of the huge growth of the company. This makes it easier for sellers to acquiesce to the all-stock purchase. Therefore, I suspect NextEra Energy is going to find it difficult to use NEE stock as an acquisition currency. It may have to start offering more cash in its deals. Until then, most investors might want to wait to see what tricks the company has up its sleeve in its next purchase offer. That might make NEE stock have a lower P/E and a more worthwhile investment target. On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Mark Hake runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post NextEra Energy Is On a Path to Acquire Another Utility With Its Shares appeared first on InvestorPlace.
InvestorPlace · 4d ago
Carbon Pricing: A weapon to tame CO2 emissions
Climate change is a real and serious issue. Economists have agreed that harnessing market forces through a price on carbon is the most cost-effective way of reducing the greenhouse gas
Seekingalpha · 5d ago
Carbon Pricing: An efficient way to tame CO2 emissions
Climate change is happening faster than even expected and economists agree that harnessing market forces through a price on carbon is the most efficient way of reducing the greenhouse gas
Seekingalpha · 5d ago
7 Infrastructure Stocks to Buy for Coast-to-Coast Improvements
InvestorPlace · 11/20 16:04
The Zacks Analyst Blog Highlights: Siemens, General Electric, NextEra Energy and Vestas Wind Systems
The Zacks Analyst Blog Highlights: Siemens, General Electric, NextEra Energy and Vestas Wind Systems
Zacks · 11/20 13:50
U.S. court allows Equitrans to keep building Mountain Valley pipeline - Reuters
The U.S. Fourth Circuit Court of Appeals has rejected a motion to stay a permit for Mountain Valley natural gas pipeline from West Virginia to Virginia, thus increasing the odds Equitrans
Seekingalpha · 11/19 20:18
US to Witness Record 2020 Wind Installations: Stocks in Focus
Zacks · 11/19 14:48
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Forecast
EPSBVPSCFPS
Actual (USD)
Estimate (USD)
Income StatementMore
Net IncomeTotal RevenueOperating Income
Net Income (USD)
YoY (%)
Balance SheetMore
Total Assets (USD)
Total Liabilities (USD)
Debt to Asset (%)
Cash FlowMore
OperatingInvestingFinancing
Operating (USD)
YoY (%)
Learn about the latest financial forecast of NEE. Analyze the recent business situations of NextEra through EPS, BVPS, FPS, and other data. This information may help you make smarter investment decisions.
Analyst Rating

Based on 20 analysts

Buy

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

Analyst Price Target
The average NEE stock price target is 78.71 with a high estimate of 87.00 and a low estimate of 64.00.
EPS
Institutional Holdings
Institutions: 2.35K
Institutional Holdings: 1.55B
% Owned: 79.26%
Shares Outstanding: 1.96B
TypeInstitutionsShares
Increased
726
42.34M
New
232
4.65M
Decreased
690
53.57M
Sold Out
0
0
  • Performance
  • Asset Allocation
  • Dividend History
No Data
Industry
Electric Utilities
-0.59%
Electric Utilities & IPPs
-0.56%
Key Executives
Chairman/President/Chief Executive Officer/Director
James Robo
Chief Financial Officer/Executive Vice President - Finance
Rebecca Kujawa
Corporate Executive
John Ketchum
Corporate Executive
Eric Silagy
Executive Vice President/General Counsel
Charles Sieving
Executive Vice President/Director of Human Resources
Deborah Caplan
Executive Vice President
Miguel Arechabala
Executive Vice President
Joseph Kelliher
Executive Vice President
Donald Moul
Executive Vice President
Ronald Reagan
Chief Accounting Officer/Vice President/Controller
James May
Treasurer
Paul Cutler
Independent Director
Sherry Barrat
Independent Director
James Camaren
Independent Director
Kenneth Dunn
Independent Director
Naren Gursahaney
Independent Director
Kirk Hachigian
Independent Director
Toni Jennings
Independent Director
Amy Lane
Independent Director
David Porges
Independent Director
Rudy Schupp
Independent Director
John Skolds
Independent Director
William Swanson
Independent Director
Darryl Wilson
  • Dividends
  • Splits
  • Insider Activity
Declaration Date
Dividend Per Share
Ex-Div Date
10/16/2020
Dividend USD 0.35
11/25/2020
07/30/2020
Dividend USD 1.4
08/27/2020
05/21/2020
Dividend USD 1.4
06/01/2020
02/14/2020
Dividend USD 1.4
02/27/2020
10/18/2019
Dividend USD 1.25
11/27/2019
07/25/2019
Dividend USD 1.25
08/28/2019
05/23/2019
Dividend USD 1.25
05/31/2019
02/15/2019
Dividend USD 1.25
02/27/2019
10/12/2018
Dividend USD 1.11
11/29/2018
07/26/2018
Dividend USD 1.11
08/29/2018
05/24/2018
Dividend USD 1.11
06/04/2018
02/16/2018
Dividend USD 1.11
02/26/2018
10/13/2017
Dividend USD 0.983
11/22/2017
07/28/2017
Dividend USD 0.983
08/23/2017
05/18/2017
Dividend USD 0.983
05/25/2017
02/21/2017
Dividend USD 0.983
02/24/2017
10/17/2016
Dividend USD 0.87
11/22/2016
07/29/2016
Dividend USD 0.87
08/26/2016
05/20/2016
Dividend USD 0.87
05/26/2016
02/12/2016
Dividend USD 0.87
02/24/2016
10/16/2015
Dividend USD 0.77
11/24/2015
08/03/2015
Dividend USD 0.77
08/26/2015
05/22/2015
Dividend USD 0.77
05/27/2015
02/13/2015
Dividend USD 0.77
02/25/2015
10/17/2014
Dividend USD 0.725
11/25/2014
07/25/2014
Dividend USD 0.725
08/27/2014
05/23/2014
Dividend USD 0.725
05/29/2014
02/14/2014
Dividend USD 0.725
02/26/2014
10/18/2013
Dividend USD 0.66
11/26/2013
07/26/2013
Dividend USD 0.66
08/28/2013
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About NEE
NextEra Energy, Inc. (NEE) is a holding company. The Company is an electric power companies in North America and, through its subsidiary NextEra Energy Resources, LLC (NEER) and its affiliated entities, is the generator of renewable energy from the wind and sun. NEE also owns and/or operates generation, transmission and distribution facilities to support its services to retail and wholesale customers, and has investments in gas infrastructure assets. Its segments include FPL and NEER. Florida Power & Light Company (FPL) is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. NEER is a diversified clean energy company with a business strategy that emphasizes the development, acquisition and operation of long-term contracted assets with a focus on renewable projects. NEER owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets.
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