Electric Services
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2022, the company had approximately 32,100 megawatts of net generating capacity; approximately 88,000 circuit miles of transmission and distribution lines; and 871 substations. It serves approximately 12 million people through approximately 5.8 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 16% | 18% | 31% | 35% | 18% | 13% | 15% | 14% | 22% | 24% |
ROA | 5.6% | 5.1% | 5.4% | 7.1% | 4.5% | 4% | 2.3% | 2.6% | 5.8% | 5.3% |
ROE | 12% | 11% | 18% | 15% | 8.2% | 5.3% | 6.2% | 6.7% | 11% | 11% |
The average Net Margin over the past 5 years is +19.47%.
The trend of Net Margin over the past 5 years is -1.99%.
The average ROA over the past 5 years is +4.37%.
The trend of ROA over the past 5 years is -0.41%.
The average ROE over the past 5 years is +8.79%.
The trend of ROE over the past 5 years is -0.75%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | - | - | - | - | - | - | - | - |
Debt Equity | 1.28 | 1.22 | 1.19 | 1.01 | 1.03 | 1.03 | 1.16 | 1.28 | 1.18 | 1.22 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 73% | 49% | 74% | 100% | 100% | 49% |
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 0.49.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 8.2% | 11% | 16% | 22% | 2.7% |
Net Income | 12% | 1.7% | 38% | 94% | 3.2% |
Stockholders Equity | 12% | 9.1% | 8.7% | 20% | -0.65% |
FCF | - | - | - | - | - |
The Revenue CAGR over the past 5 years is +10.94%.
The trend of Revenue growth rate over the past 5 years is +2.67%.
The Earnings CAGR over the past 5 years is +1.69%.
The trend of Earnings growth rate over the past 5 years is +3.15%.
The Equity CAGR over the past 5 years is +9.08%.
The trend of Equity growth rate over the past 5 years is -0.65%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -.