Nextera Energy Operating Margin vs. Return On Asset
| NEE Stock | USD 76.00 0.85 1.11% |
For Nextera Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nextera Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nextera Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nextera Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nextera Energy over time as well as its relative position and ranking within its peers.
Nextera |
Nextera Energy's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nextera Energy. If investors know Nextera will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nextera Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.5 | Dividend Share 2.013 | Earnings Share 3.37 | Revenue Per Share 12.79 | Quarterly Revenue Growth 0.055 |
The market value of Nextera Energy is measured differently than its book value, which is the value of Nextera that is recorded on the company's balance sheet. Investors also form their own opinion of Nextera Energy's value that differs from its market value or its book value, called intrinsic value, which is Nextera Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nextera Energy's market value can be influenced by many factors that don't directly affect Nextera Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nextera Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nextera Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nextera Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Nextera Energy Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nextera Energy's current stock value. Our valuation model uses many indicators to compare Nextera Energy value to that of its competitors to determine the firm's financial worth. Nextera Energy is regarded third in operating margin category among its peers. It is regarded fourth in return on asset category among its peers reporting about 0.09 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Nextera Energy is roughly 11.66 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Nextera Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Nextera Return On Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Nextera Energy |
| = | 0.36 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Nextera Energy |
| = | 0.0305 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Nextera Return On Asset Comparison
Nextera Energy is currently under evaluation in return on asset category among its peers.
Nextera Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nextera Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nextera Energy will eventually generate negative long term returns. The profitability progress is the general direction of Nextera Energy's change in net profit over the period of time. It can combine multiple indicators of Nextera Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company was founded in 1925 and is headquartered in Juno Beach, Florida. Nextera Energy operates under UtilitiesRegulated Electric classification in the United States and is traded on New York Stock Exchange. It employs 15000 people.
Nextera Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nextera Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nextera Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nextera Energy's important profitability drivers and their relationship over time.
Use Nextera Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nextera Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nextera Energy will appreciate offsetting losses from the drop in the long position's value.Nextera Energy Pair Trading
Nextera Energy Pair Trading Analysis
The ability to find closely correlated positions to Nextera Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nextera Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nextera Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nextera Energy to buy it.
The correlation of Nextera Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nextera Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nextera Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nextera Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Nextera Energy position
In addition to having Nextera Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Entertainment Thematic Idea Now
Entertainment
Companies from entertainment industry including show business, news and media. The Entertainment theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Entertainment Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis. For information on how to trade Nextera Stock refer to our How to Trade Nextera Stock guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project Nextera Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nextera Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nextera Energy's income statement, its balance sheet, and the statement of cash flows.