NEE – Market expectations are for peak Uniform ROA, but management’s concerns about growth in earnings and origination activity imply this may be unwarranted

• NextEra Energy, Inc. (NEE:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 31.8x Uniform P/E, implying bullish expectations for the firm. However, given management’s concerns about growth in earnings and origination activity, this may be unwarranted
• Specifically, management appears concerned about the sustainability of adjusted earnings and EPS growth, as well as growth in origination activity. Should the firm fail to sustain Uniform Margins at peak levels, as management sentiment suggests, multiple compression and equity downside would be warranted