NEE - Embedded Expectations Analysis - 2021 08 19
NextEra Energy, Inc. (NEE:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.8x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about their wind and solar assets, ongoing rate issues with FPL, and their renewables market share.Specifically, management may lack confidence in their ability to fully capitalize on the broad industry shift towards renewables, execute their subsidiaries' major capital initiatives, and continue to acquire Energy Resources' wind and solar project assets. Furthermore, they may have concerns about their renewables acquisition financing and their data analytics and machine learning capabilities. Management may also lack confidence in their ability to surpass their adjusted EPS, cash available for distribution, and distribution per unit guidance, as well as gain renewable capacity market share in the US. Moreover, they may have concerns about the progress of discussions with ERCOT Texas, the sustainability of the Biden administration's continued support for renewables, and their FPL rate request settlement agreement.
NextEra Energy is a holding company, engaged in electric power and energy infrastructure. The company has two principal businesses, Florida Power & Light Company (FPL) and NextEra Energy Resources, LLC (NEER). FPL is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. FPL provides service to its electric customers through a transmission and distribution system that links its generation facilities to its customers. NEER, through its subsidiaries, owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets primarily in the United States and Canada.
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