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NEE$88.55

NextEra Energy Inc.

Last Updated
Sep 6, 2026about 5 hours ago
Moat & Trend
Management
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Competitive Radar

Moat Score

60/100

Executive Summary

NextEra Energy combines a protected regulated utility franchise at Florida Power & Light with the largest renewable development platform in the country, giving it one of the strongest scale positions in U.S. power. FPL’s Florida territory is extremely hard to replicate, and NEER’s siting, procurement, interconnection, and financing capabilities help it win utility-scale wind, solar, and storage projects. That said, the business lacks meaningful network effects, and much of its edge comes from regulation, execution, and capital access rather than a hard-to-copy technology moat. Political risk in Florida, rooftop-solar disputes, and the competitive nature of renewables keep the franchise from becoming a wide moat. The result is a durable but not impregnable business with stable competitive structure and solid long-term resilience.

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Last Updated
May 23, 20264 months ago
Target Price
Analyst Consensus
FAIR VALUE
Financial Strength

Financial Score

66/100

Executive Summary

NextEra Energy’s most notable strength is its resilient, utility-like earnings power, supported by strong margins, improving cash generation, and a constructive growth outlook. Revenue has rebounded after a 2024 dip, with TTM growth of 10.3% and analysts expecting steady expansion through 2027, while operating cash flow remains robust enough to fund heavy capex and dividends. However, this strength is tempered by a leveraged balance sheet, thin liquidity, and rising debt metrics, which constrain financial flexibility. Reported net income is also somewhat volatile due to non-operating items, even as underlying operating performance remains solid. Overall, NEE presents a stable but capital-intensive profile, with healthy earnings and cash flow offset by balance-sheet pressure, consistent with its mid-to-upper tier ratings.

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Frequently asked questions about NextEra Energy Inc.

Does NextEra Energy Inc. (NEE) have an economic moat?
MoatScan AI rates NextEra Energy Inc. (NEE) 60/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. NextEra Energy combines a protected regulated utility franchise at Florida Power & Light with the largest renewable development platform in the country, giving it one of the strongest scale positions in U.S.Sign in free to see the Moat Type verdict and the pillar-by-pillar reasoning.
What is NextEra Energy Inc.'s moat score?
NextEra Energy Inc. (NEE) has a moat score of 60/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.Sign in free to see each pillar rating, the Moat Type verdict and the moat trend.
Is NEE stock overvalued or undervalued?
MoatScan AI answers this by estimating NEE's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.Sign in free to see the fair value estimate, the implied upside or downside, and the verdict.
What is NextEra Energy Inc.'s fair value estimate?
MoatScan AI derives NextEra Energy Inc.'s (NEE) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.Sign in free to see the estimate and the full assumptions behind it.

Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.