Is NextEra Energy, Inc. (NYSE:NEE) Expensive For A Reason? A Look At Its Intrinsic Value
Oct 28
U.S. Electric Utilities Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies36
- 7D3.3%
- 3M-10.3%
- 1Y-10.2%
- YTD-15.9%
In the last week, the Electric Utilities industry is up 3.3%, with NextEra Energy up 11%. In the past year, the industry is down 10%. Looking forward, earnings are forecast to grow by 9.8% annually.
Industry Valuation and Performance
Has the U.S. Electric Utilities Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | US$623.1b | US$325.5b | US$29.9b | 18.4x | 20.9x | 1.9x |
| Thu, 28 Sep 2023 | US$632.2b | US$325.0b | US$30.5b | 18.2x | 20.7x | 1.9x |
| Sat, 26 Aug 2023 | US$663.4b | US$325.0b | US$30.5b | 18.9x | 21.8x | 2x |
| Mon, 24 Jul 2023 | US$718.7b | US$325.6b | US$28.9b | 19.3x | 24.8x | 2.2x |
| Wed, 21 Jun 2023 | US$693.0b | US$325.6b | US$28.9b | 18.9x | 23.9x | 2.1x |
| Fri, 19 May 2023 | US$689.5b | US$323.5b | US$28.9b | 19.3x | 23.8x | 2.1x |
| Sun, 16 Apr 2023 | US$716.8b | US$314.2b | US$29.7b | 19.9x | 24.2x | 2.3x |
| Tue, 14 Mar 2023 | US$674.9b | US$314.2b | US$29.6b | 18.8x | 22.8x | 2.1x |
| Thu, 09 Feb 2023 | US$690.1b | US$322.3b | US$31.9b | 18.6x | 21.6x | 2.1x |
| Sat, 07 Jan 2023 | US$737.5b | US$320.5b | US$31.5b | 19.6x | 23.4x | 2.3x |
| Mon, 05 Dec 2022 | US$729.3b | US$320.5b | US$31.5b | 19.2x | 23.2x | 2.3x |
| Wed, 02 Nov 2022 | US$685.8b | US$312.2b | US$33.4b | 18x | 20.5x | 2.2x |
| Fri, 30 Sep 2022 | US$680.5b | US$305.5b | US$30.3b | 18.1x | 22.4x | 2.2x |
| Sun, 28 Aug 2022 | US$764.0b | US$305.5b | US$30.3b | 21.4x | 25.2x | 2.5x |
| Tue, 26 Jul 2022 | US$698.1b | US$294.1b | US$29.0b | 21.4x | 24.1x | 2.4x |
| Thu, 23 Jun 2022 | US$665.1b | US$292.9b | US$27.9b | 20.2x | 23.9x | 2.3x |
| Sat, 21 May 2022 | US$711.7b | US$292.9b | US$27.9b | 21.6x | 25.6x | 2.4x |
| Mon, 18 Apr 2022 | US$751.4b | US$288.1b | US$26.8b | 22.2x | 28x | 2.6x |
| Wed, 16 Mar 2022 | US$699.8b | US$288.1b | US$26.8b | 20.6x | 26.1x | 2.4x |
| Fri, 11 Feb 2022 | US$673.1b | US$278.6b | US$26.7b | 21.9x | 25.2x | 2.4x |
| Sun, 09 Jan 2022 | US$714.3b | US$259.0b | US$25.7b | 23.1x | 27.8x | 2.8x |
| Tue, 07 Dec 2021 | US$697.1b | US$259.0b | US$25.7b | 21.6x | 27.1x | 2.7x |
| Thu, 04 Nov 2021 | US$678.0b | US$253.2b | US$23.5b | 21x | 28.9x | 2.7x |
| Sat, 02 Oct 2021 | US$645.3b | US$250.9b | US$25.4b | 21.3x | 25.4x | 2.6x |
| Mon, 30 Aug 2021 | US$688.4b | US$250.9b | US$25.4b | 21.6x | 27.1x | 2.7x |
| Tue, 06 Jul 2021 | US$636.4b | US$250.9b | US$25.4b | 21.3x | 25x | 2.5x |
| Fri, 09 Apr 2021 | US$639.2b | US$243.4b | US$23.1b | 21.2x | 27.6x | 2.6x |
| Thu, 31 Dec 2020 | US$626.9b | US$231.2b | US$21.3b | 20.4x | 29.4x | 2.7x |
Price to Earnings Ratio
27.6x
Current Industry PE
- Investors are pessimistic on the American Electric Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 20.7x which is lower than its 3-year average PE of 25.3x.
- The 3-year average PS ratio of 2.4x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
- The earnings for companies in the Electric Utilities industry have grown 11% per year over the last three years.
- Revenues for these companies have grown 12% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Utilities industry?
| US Market | -1.24% | |
| Utilities | 2.41% | |
| Electric Utilities | 3.27% | |
| Electric Utilities | 3.27% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NEE NextEra Energy | US$57.20 | 11.0% +US$11.5b | -26.2% | PE15.2x | |
| SO Southern | US$66.79 | 2.1% +US$1.5b | 2.0% | PE23.6x | |
| DUK Duke Energy | US$87.90 | 1.8% +US$1.2b | -5.7% | PE18.2x | |
| AEP American Electric Power Company | US$75.41 | 2.8% +US$1.1b | -14.2% | PE19.6x | |
| PCG PG&E | US$16.20 | 2.9% +US$918.1m | 8.5% | PE17.6x |
