Nextera Energy Operating Margin vs. Current Valuation
| NEE Stock | USD 71.67 1.90 2.72% |
Nextera Energy Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.61 | 0.6394 |
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| Net Profit Margin | 0.27 | 0.26 |
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| Operating Profit Margin | 0.38 | 0.3641 |
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| Pretax Profit Margin | 0.14 | 0.2592 |
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| Return On Assets | 0.0409 | 0.0412 |
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| Return On Equity | 0.096 | 0.154 |
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For Nextera Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nextera Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nextera Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nextera Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nextera Energy over time as well as its relative position and ranking within its peers.
Nextera |
Nextera Energy's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nextera Energy. If investors know Nextera will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nextera Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.5 | Dividend Share 2.013 | Earnings Share 3.46 | Revenue Per Share 12.79 | Quarterly Revenue Growth 0.055 |
The market value of Nextera Energy is measured differently than its book value, which is the value of Nextera that is recorded on the company's balance sheet. Investors also form their own opinion of Nextera Energy's value that differs from its market value or its book value, called intrinsic value, which is Nextera Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nextera Energy's market value can be influenced by many factors that don't directly affect Nextera Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nextera Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nextera Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nextera Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Nextera Energy Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nextera Energy's current stock value. Our valuation model uses many indicators to compare Nextera Energy value to that of its competitors to determine the firm's financial worth. Nextera Energy is regarded second in operating margin category among its peers. It also is regarded second in current valuation category among its peers reporting about 640,850,712,545 of Current Valuation per Operating Margin. At present, Nextera Energy's Operating Profit Margin is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Nextera Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Nextera Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Nextera Energy |
| = | 0.36 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Nextera Energy |
| = | 227.89 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Nextera Current Valuation vs Competition
Nextera Energy is regarded second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is now estimated at about 788.44 Billion. Nextera Energy totals roughly 227.89 Billion in current valuation claiming about 29% of Utilities industry.
Nextera Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nextera Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nextera Energy will eventually generate negative long term returns. The profitability progress is the general direction of Nextera Energy's change in net profit over the period of time. It can combine multiple indicators of Nextera Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -153 M | -145.3 M | |
| Operating Income | 10.2 B | 10.7 B | |
| Net Income | 6.3 B | 6.6 B | |
| Income Tax Expense | 1 B | 1.1 B | |
| Income Before Tax | 7.3 B | 7.7 B | |
| Total Other Income Expense Net | -2.9 B | -2.8 B | |
| Net Income Applicable To Common Shares | 4.8 B | 2.5 B | |
| Net Income From Continuing Ops | 6.6 B | 4 B | |
| Non Operating Income Net Other | 386.4 M | 367.1 M | |
| Interest Income | 686.7 M | 721 M | |
| Net Interest Income | -2 B | -2.1 B | |
| Change To Netincome | 1.9 B | 2 B | |
| Net Income Per Share | 3.61 | 3.79 | |
| Income Quality | 1.80 | 2.64 | |
| Net Income Per E B T | 1.00 | 0.62 |
Nextera Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nextera Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nextera Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nextera Energy's important profitability drivers and their relationship over time.
Use Nextera Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nextera Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nextera Energy will appreciate offsetting losses from the drop in the long position's value.Nextera Energy Pair Trading
Nextera Energy Pair Trading Analysis
The ability to find closely correlated positions to Nextera Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nextera Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nextera Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nextera Energy to buy it.
The correlation of Nextera Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nextera Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nextera Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nextera Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Nextera Energy position
In addition to having Nextera Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Measuring and Control Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Measuring and Control Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Measuring and Control Equipment Theme or any other thematic opportunities.
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Check out Correlation Analysis. For information on how to trade Nextera Stock refer to our How to Trade Nextera Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Nextera Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nextera Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nextera Energy's income statement, its balance sheet, and the statement of cash flows.