We are lowering our NextEra Energy fair value estimate to $74 per share from $82 after incorporating lower allowed returns at Florida Power & Light to reflect ongoing regulatory risk relating to past campaign finance practices. Our narrow moat and medium uncertainty rating remain unchanged.
FP&L operates in one of the most constructive regulatory environments with numerous capital investment opportunities.
The company's campaign finance practices have come under scrutiny, potentially threatening its constructive regulatory environment in Florida.
|
Metric
|
NEE
|
AGR
|
SO
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.35 | 20.94 | 21.61 |
Price/Book Value | 2.53 | 0.63 | 2.45 |
Price/Sales | 4.28 | 1.50 | 2.95 |
Price/Cash Flow | 10.79 | 8.03 | 11.51 |
|
Metric
|
NEE
|
AGR
|
SO
|
|---|---|---|---|
Quick Ratio | 0.23 | 0.38 | 0.43 |
Current Ratio | 0.50 | 0.78 | 0.84 |
Interest Coverage | 4.84 | 2.09 | 2.40 |
|
Metric
|
NEE
|
AGR
|
SO
|
|---|---|---|---|
Return on Assets (Normalized) | 3.89% | 1.42% | 2.19% |
Return on Equity (Normalized) | 15.01% | 3.02% | 9.63% |
Return on Invested Capital (Normalized) | 6.70% | 2.91% | 5.32% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
SO
| Southern Co | Qdntwsk | $76.9 Bil | |
DUK
| Duke Energy Corp | Zthnbk | $70.2 Bil | |
NGG
| National Grid PLC ADR | Tng | $47.7 Bil | |
PCG
| PG&E Corp | Hjrsw | $44.5 Bil | |
AEP
| American Electric Power Co Inc | Kgxbdh | $41.9 Bil | |
D
| Dominion Energy Inc | Fqftcq | $39.3 Bil | |
EXC
| Exelon Corp | Nskghd | $39.0 Bil | |
XEL
| Xcel Energy Inc | Mqgrddx | $33.6 Bil | |
PEG
| Public Service Enterprise Group Inc | Vhfzpj | $32.1 Bil |
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