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NextEra Stock Analysis : Renewable Energy, Joe Biden. English Version

I'm Korean and therefore there may be untranslated word and translation errors.

Source: bold business.com

Company NextEra Energy 
Ticker NYSE: NEE
Stock NextEra Energy Holding company
Field renewable energy production from wind and sun
Special note World's largest production of renewable energy
Market capitalization 147.40 Billion $
Stock price 301.04 $
Dividend , ( Dividend yield ) 5.60 $ ,(1.88 %)
Declared date Feb, May, Jul, Oct
Dividend payment date Mar, Jun, Sep, Dec

Next Era Energy Dividend Declared Date

 

Source: Diviend.com

February 14, May 21 and July 30 as of 2020 + expected mid-October to end

If you had shares in NextEra Energy, you'd get a dividend of $1.40 a quarter


Dividend Growth of Next Era Energy

Source. Seekingalpha.com

Dividend growth of about 12% per year was achieved.

The dividend was $5.60 this year, so if it increase by 12%, you'll receive $6.72 per stock

Dividend yield is 2.23%. calculated on the current market price basis.

Dividends have been growing steadily and steeply since 1994.

 


Change in dividend yield

 

Source. Seekingalpha.com

 

Dividend yields are going down.

This means that expectations for the company are growing,

 

and stock prices have risen higher than dividend growth rates.

Also It can be interpreted : increasing dividends slightly compared to stock prices.


Estimate stock price at dividend yield

 

Dividend Growth in 2021 Dividend, 2021 stock price
Based on a dividend yield 1.88%
stock price
Based on a dividend yield 1.50%
stock price
Based on a dividend yield 1.20%
11% 6.160 $ 327.65 $ 410.66 $ 513.33 $
12% 6.272 $ 336.17 $ 418.13 $ 522.66 $
13% 6.328 $ 336.59 $ 421.86 $ 527.33 $
14% 6.384 $ 339.57 $ 425.60 $ 532.00 $

It's just a personal opinion.


Increase in sales and PER for stock price forecasts

 

 

It shows sales that have grown by 11% compared to combined sales in first and second quarters of last year.

If sales grow at this rate and PER is maintained at around 30, stock prices can also rise by 11%.

 

 

 


Growth potential of Nextera energy

 

Performance and dividends appear to be a solid company.

 

The above calculation will be correct only if it can show a growth rate of 11% or more in the future.

Next Erra Energy is a company that produces electricity with solar and wind power.

Electricity cannot be stored or exports.

Unless demand for electricity in the domestic market increases, there may be limits to sales growth.

 

Changes in Electricity consumption U.S

It's been a bit stagnant since the 2000s, but in the future, there will be more electronic machines.

There will be more electric vehicle instead of cars run by oil

 

Electricity consumption will increase.


Therefore, I believe that there is also growth in sales.


Who is the competitor of Nextera Energy?

 

Competitor of NextEra Energy. Source craft.com

EDF Renewables is a French company, and the largest competitor in the United States is SouthernCompany.

 

Sales are larger than NextEra Energy, but its market capitalization is about half that of NextEra.

However, there is a slight decrease in sales, and the dividend growth rate is around 3%,

 

which is lower than NextEra Energy.

It looks like growth is low.

Therefore, there seems to be no power production company that is threatening Nextera right now.

 


Decided to split shares on Sept. 15, 2020.


On September 15, 2020, the company decided to split the stock by one quarter.

Starting October 27, 2020, the shares will be traded in installments.

Stock split can be seen as a positive factor in a bull market and a negative factor in a bear market,

 

as it increases liquidity.

 


By subindex, the stock price

We've seen a bit of a surge in stock prices with Biden's theme stocks,

If the price does not seem to be out of the proper stock price

 

and the overheated index is 66, it is not impossible to buy it at all.


investment idea

1. Joe Biden's Winning the Presidential election

2. The advent of an era of renewable energy

3. Stock split becomes a postive factor

 

 

 

 


investment risk

1. Joe Biden's Fallout

2. Stock split becomes a negative factor

3. Even if Joe Biden becomes president, stocks fall due to the depletion of materials due to the elimination of expectations.


I don't want copy/re-distribution or commercial use. If you leave a blog link when you use the data, I will allow it. 2020.10.09 11:41


This post is not an investment recommendation, and all investments are on your own terms.

Calculating proper stock price is just a personal opinion, but there is no set law.

 

Stock investment is an investment that can result in loss of principal.

 

- Hyungue Choi-