NEE (Update)

NextEra Energy Inc

Utilities, Energy


Presented:12/06/2017
Price:$39.44
Cap:$74.71B
Current Price:$82.79
Cap:$170.16B

Presented

Date12/06/2017
Price$39.44
Market Cap$74.71B
Ent Value$103.45B
P/E Ratio17.73x
Book Value$14.00
Div Yield2.49%
Shares O/S1,894.00M
Ave Daily Vol6,248,056
Short IntN/A

Current

Price$82.79
Market Cap$170.16B
NextEra Energy, Inc. operates as an investment holding company with interests in generating and distributing electricity. The company through its subsidiaries provides retail and wholesale electric services to customers and owns generation, transmission and distribution facilities to support its services. It operates through following business segments: FPL, NEER and Corporate & Other. The FPL segment engages primarily in the generation, transmission, distribution and sale of electric energy in Florida. The NEER segment produces electricity from clean and renewable sources, including wind and solar. It provides full energy and capacity requirements services; engages in power and gas marketing and trading activities; participates in natural gas production and pipeline infrastructure development; and owns a retail electricity provider. The Corporate & Other segment represents other business activities that are separately reportable and eliminating entries. The company was founded in 1984 and is headquartered in Juno Beach, FL.

Please note, this is an update to NextEra Energy (NEE) – Short, which was originally presented on 9/15/2017 ($150.09).

Please note, this stock split on 10/27/2020 at a ratio of 4/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $157.78.

Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK/A, BRK/B), NextEra Energy Inc (NEE), Royal Dutch Shell PLC (RDS/A), Tesla Inc (TSLA), Total SA (TOT) 

Highlights

The presenter remains short NextEra Energy (NEE) at $157, and continues to view the stock as incredibly expensive in the face of “unprecedented fundamental risks” to its business. The ownership story hasn’t changed, as financial advisor and ETF flows continue to “blindly” support the >6x sales valuation. He reiterated several of the risks, and provided some additional detail on the threat that solar and renewables pose to the utility “darling”:

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Idea Discussion

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