Business Analysis of NextEra Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of NextEra Energy

NEXTERA ENERGY

Business Overview

NextEra Energy, Inc., through its subsidiaries, generates, transmits, and distributes electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of December 31, 2016, it served approximately 10 million people through approximately 4.9 million customer accounts in the east and lower west coasts of Florida. The company had approximately 45,900 megawatts of generating capacity. 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 1925 and is headquartered in Juno Beach, Florida.

NextEra Energy

NextEra Energy


R&P Rank: 170
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Florida
Website: www.nexteraenergy.com
Company Address:
700 UNIVERSE BLVD, JUNO BEACH FL 33408
Ph:561-694-4000

Business Analysis of NextEra Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how NextEra Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by NextEra Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of NextEra Energy with an interactive chart.

  1. Revenue Growth: NextEra Energy reported a revenue growth of -7.6% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, NextEra Energy spent 46.0% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: NextEra Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: NextEra Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, NextEra Energy spent 21.2% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, NextEra Energy invested 21.3% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, NextEra Energy invested 15.1% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, NextEra Energy invested 414.2% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: NextEra Energy Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: NextEra Energy Net Margins in the year 2016 were 18.0%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of NextEra Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

NextEra Energy is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of NextEra Energy

With $16.2 billion revenues, NextEra Energy ranked number 3 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of NextEra Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of nextera-energy

Southern (SO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Southern Co with $20 billion revenues in the year 2016 was the number 1 Electric Utilities company. Read this report to know the top competitors of Southern and identify growth and cost optimization opportunities of Southern

American Electric Power (AEP) Business Analysis – Analyze Historical Performance, Strategic...

American Electric Power Co Inc with $16 billion revenues in the year 2016 was the number 2 Electric Utilities company. Read this report to know the top competitors of American Electric Power and identify growth and cost optimization opportunities of American Electric Power

FirstEnergy (FE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

FirstEnergy Corp with $15 billion revenues in the year 2016 was the number 4 Electric Utilities company. Read this report to know the top competitors of FirstEnergy and identify growth and cost optimization opportunities of FirstEnergy

AES (AES) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AES Corp with $14 billion revenues in the year 2016 was the number 5 Electric Utilities company. Read this report to know the top competitors of AES and identify growth and cost optimization opportunities of AES

NRG Energy (NRG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

NRG Energy, Inc. with $12 billion revenues in the year 2016 was the number 6 Electric Utilities company. Read this report to know the top competitors of NRG Energy and identify growth and cost optimization opportunities of NRG Energy

Edison International (EIX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Edison International with $12 billion revenues in the year 2016 was the number 7 Electric Utilities company. Read this report to know the top competitors of Edison International and identify growth and cost optimization opportunities of Edison International

Revenues Analysis

NextEra Energy (NEE) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of NextEra Energy Inc (NEE) from 2012 to 2016. NextEra Energy generated a total of $16.2 billion revenues during 2016. NextEra Energy reported a revenue growth of -7.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

NextEra Energy (NEE) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of NextEra Energy Inc (NEE) from 2002 to 2016. NextEra Energy generated a total of $16.2 billion revenues during 2016. NextEra Energy reported a revenue growth of -7.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

NextEra Energy (NEE) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of NextEra Energy Inc (NEE) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. NextEra Energy reported a revenue growth of -7.6% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. NextEra Energy growth was slower than the industry during 2016.

Profit Analysis

NextEra Energy (NEE) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of NextEra Energy Inc (NEE) from 2012 to 2016. NextEra Energy reported a total net income of $2.9 billion during 2016. NextEra Energy generated a total of $16.2 billion revenues during 2016. NextEra Energy net profit margin was 18% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.