NextEra Energy (NEE) 10-K Red Flags
Risk signals extracted deterministically from NextEra Energy’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (16)
- Receivables outpacing revenue: Accounts receivable grew +20.4% YoY vs revenue growth of -7.1%. The +27.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +9.3% vs revenue -7.1%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 1 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.83x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Revenue grew -7.1% but receivables grew +20.4% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 1 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Price $85.91 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 34.60.
- Composite risk: Moderate.
- Leverage debt/equity 1.70 (moderate).
- Receivables outpacing revenue: Accounts receivable grew +20.4% YoY vs revenue growth of -7.1%. The +27.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +9.3% vs revenue -7.1%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
Filings & ownership
- Latest annual report (10-K) filed Feb 13, 2026.
- Latest quarterly report (10-Q) filed Jul 24, 2026.
- 17 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference NextEra Energy; broad institutional reporting.
- Recent filers include TORTOISE CAPITAL ADVISORS, L.L.C., TORTOISE CAPITAL ADVISORS, L.L.C., TORTOISE CAPITAL ADVISORS, L.L.C..
- 11 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 9 recent 13G passive institutional ownership notices.
Full NEE analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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