NEE

NextEra Energy Inc.

Energy


Presented:10/01/2014
Price:$94.29
Cap:$41.10B
Current Price:$82.79
Cap:$170.16B

Presented

Date10/01/2014
Price$94.29
Market Cap$41.10B
Ent Value$70.47B
P/E Ratio18.23x
Book Value$44.96
Div Yield3%
Shares O/S436.36M
Ave Daily Vol1,710,000
Short Int3.35%

Current

Price$82.79
Market Cap$170.16B
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric energy in the United States and Canada. The company generates electricity from gas, oil, solar, coal, petroleum coke, and nuclear sources. As of December 31, 2013, it served approximately 9 million people through approximately 4.7 million customer accounts in the east and lower west coasts of Florida. NextEra Energy had approximately 42,500 mega watts of generating capacity. It also leases fiber-optic network capacity and dark fiber to telephone, wireless, Internet, and other telecommunications companies. 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 1984 and is headquartered in Juno Beach, Florida.

Publicly traded companies mentioned herein: NextEra Energy, Inc. (NEE), NextEra Energy Partners, LP (NEP)

Highlights

The presenter is long shares of NextEra Energy (NEE), which have risen ~10% year-to-date. He believes the risk/ reward is extremely favorable at present levels (~$94) on a low beta, defensive name. His future EPS estimates for Florida Power and Light (FPL), cash flow estimates for NextEra Energy Partners (NEP; NEE’s yieldco), and asset value estimates suggest the stock could be worth $130-150+ over the next 12-18 months (vs. downside risk of just 5-10%). Over time, he believes the market will re rate NEE to reflect the fact that it is not a plain vanilla utility.

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Idea Discussion

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