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A Look at NextEra Energy’s Return on Equity

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NextEra Energy’s return on equity

NextEra Energy’s (NEE) consolidated ROE (return on equity) has stayed above 12% for the past couple of quarters. This level is slightly higher than the authorized ROE of 11% and the industry average of 10%, thanks to NEE’s non-utility segments. Notably, non-utility segments are FERC (Federal Energy Regulatory Commission) regulated and generally fetch higher ROE.

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By comparison, American Electric Power (AEP) has one of the most geographically diversified utility operations in the US and fetches ROE of above 10%. WEC Energy Group’s (WEC) ROE is 12.7%, which is one of the highest in the industry.

But how does NextEra measure up in terms of credit profile? Continue to the next part to find out.

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