Nextera Energy Partners (NEP) presents a compelling case for investment, with a robust net asset value of
23.05B and a stable beta of 0.87, indicating less volatility compared to the market. Despite a significant change to net income, resulting in a loss of
889M, the company has maintained a healthy dividend share of 3.205 and a forward dividend rate of 3.21, reflecting its commitment to rewarding shareholders. NEP's market capitalization stands at
5.2B, and with a price to book ratio of 1.93X, it suggests that the market perceives the stock as fairly valued. Lastly, the company's net tangible assets are valued at
14.8B, providing a solid financial base for potential growth.
Detailed assessment
We regard Nextera Energy as quite stable. Nextera Energy Partners has a Sharpe Ratio of 0.0564, which indicates that the company had a 0.0564% return per unit of risk over the past three months. Our approach to assessing the volatility of a stock involves using all available market data along with stock-specific technical indicators that cannot be diversified away. We have identified fifteen technical indicators for Nextera Energy, which you can utilize to predict the company's future volatility. Please confirm Nextera Energy Partners' Risk Adjusted Performance of 0.0012, mean deviation of 1.68, and Standard Deviation of 2.69 to verify if the risk estimate we provide aligns with the expected return of 0.14%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Nextera Energy income statement, its balance sheet, and the statement of cash flows. Potential Nextera Energy investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Nextera Energy investors may use each financial statement separately, they are all related. The changes in Nextera Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nextera Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Nextera Energy
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Nextera Energy performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Nextera Energy shares is the value that is considered the true value of the share. If
the intrinsic value of Nextera is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Nextera Energy. Please read more on our
fundamental analysis page.
And What about dividends?
A dividend is the distribution of a portion of Nextera Energy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Nextera Energy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Nextera one year expected dividend income is about USD2.35 per share.
Investing in dividend-paying stocks, such as Nextera Energy Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nextera Energy must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Nextera Energy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Nextera Energy's Liquidity
Nextera Energy
financial leverage refers to using borrowed capital as a funding source to finance Nextera Energy Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nextera Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Nextera Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Nextera Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Nextera Energy's total debt and its cash.
What is driving Nextera Energy Investor Appetite?
Institutional investors typically avoid acquiring a high percentage of Nextera Energy stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Nextera is distributed among investors.
Ownership Allocation
Nextera Energy Partners holds a total of 88.9 Million outstanding shares. The majority of Nextera Energy
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Nextera Energy Partners to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Nextera Energy Partners. Please pay attention to any change in the institutional holdings of Nextera Energy as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors10.22% | | Institutions88.66% |
| Retail Investors | 10.22 |
| Insiders | 1.12 |
| Institutions | 88.66 |
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Nextera connotes not a very effective usage of assets in July.
| Current Assets | 2.01 Billion | 7.12 |
| Assets Non Current | 22.86 Billion | 81.01 |
| Goodwill | 3.14 Billion | 11.14 |
| Tax Assets | 204.45 Million | 0.72 |
NextEra Energy Partners (NEP) is a key player in the Utilities-Renewable industry, with a market capitalization of
$5.15 billion. The company has a robust asset base, with net assets valued at
$23.05 billion, including $15 billion in net property, plant, and equipment. The company's total revenue stands at $1.2 billion, with a gross profit of $642 million. Despite a high payout ratio of 85.01%, the company maintains a forward dividend rate of 3.21, reflecting a yield of 5.45%. NEP's
financial health is further underscored by its debt management. The company's total debt stands at $5.29 billion, with long-term debt accounting for $5.2 billion of this. However, the company's debt to equity ratio is a manageable 0.44%, indicating a balanced capital structure. The company's earnings per share (EPS) is 3.73X, with an estimated EPS of 0.39 for the current quarter. The price to earnings ratio stands at 15.41X, while the forward PE is 36.3636. The company's book value per share is 38.32X, indicating potential for growth. In conclusion, NextEra Energy Partners presents a promising investment opportunity, with strong
fundamentals and potential for growth. The company's robust asset base, healthy debt
management, and promising earnings indicators make it a viable choice for retail investors.
Will price continue to spike in August 2023?
The standard deviation of Nextera Energy Partners stock has decreased to 2.69, indicating a decline in volatility and a more stable price trend. This reduced volatility could be a positive indicator for investors seeking steady growth. Given the current stability, there's a potential for the price to continue to rise in August 2023. However, investors should closely monitor market conditions and the company's
financial performance to
make informed decisions. Nextera Energy Partners exhibits very low volatility with a skewness of 2.06 and a kurtosis of 12.58. However, we recommend investors to further study Nextera Energy Partners' technical indicators to ensure that all market information is available and reliable. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Nextera Energy's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Nextera Energy's stock price, adding stress to investors as they watch the value of their shares decrease. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Nextera Energy Partners (NEP) appears to be well-positioned for sustained growth. The company's valuation real value is currently at
$68.7, which is higher than the naive expected forecast value of $60.54, indicating a positive outlook. The analyst overall consensus is a 'Buy', with 8 strong buys out of 11 estimates, suggesting a bullish sentiment among market experts. Furthermore, the analyst target price estimated value is at a robust
$79.272, significantly higher than the current market value, providing potential upside for investors. However, investors should also consider the possible downside price of $58.02. With the fiscal year end in December, investors should closely monitor the company's performance in the coming months. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nextera Energy Partners. Please refer to our
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