NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
166.28 USD
-1.02 (-0.61%)
166.12 USD
-0.16 (-0.1%)
Taking everything into account, NRG scores 4 out of 10 in our fundamental rating. NRG was compared to 47 industry peers in the Electric Utilities industry. NRG has an average financial health and profitability rating. NRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NRG had positive earnings in the past year.
In the past year NRG had a positive cash flow from operations.
NRG had positive earnings in 4 of the past 5 years.
NRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NRG has a worse Return On Assets (1.89%) than 85.11% of its industry peers.
Looking at the Return On Equity, with a value of 19.89%, NRG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
NRG has a Return On Invested Capital of 2.92%. This is amongst the best in the industry. NRG outperforms 80.85% of its industry peers.
NRG had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly above the industry average of 5.01%.
The last Return On Invested Capital (2.92%) for NRG is well below the 3 year average (10.16%), which needs to be investigated, but indicates that NRG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROIC | 2.92% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)10.16%
ROIC(5y)11.32%
1.3 Margins
NRG's Profit Margin of 1.55% is on the low side compared to the rest of the industry. NRG is outperformed by 91.49% of its industry peers.
NRG's Profit Margin has declined in the last couple of years.
The Operating Margin of NRG (1.96%) is worse than 89.36% of its industry peers.
NRG's Operating Margin has declined in the last couple of years.
NRG has a Gross Margin of 15.25%. This is in the lower half of the industry: NRG underperforms 76.60% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% |
OM growth 3Y-18.92%
OM growth 5Y-11.2%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-4.97%
GM growth 5Y-4.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NRG is creating some value.
NRG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NRG has been reduced compared to 5 years ago.
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.27 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
NRG has a better Altman-Z score (2.27) than 91.49% of its industry peers.
NRG has a debt to FCF ratio of 7.85. This is a slightly negative value and a sign of low solvency as NRG would need 7.85 years to pay back of all of its debts.
NRG's Debt to FCF ratio of 7.85 is amongst the best of the industry. NRG outperforms 85.11% of its industry peers.
A Debt/Equity ratio of 4.29 is on the high side and indicates that NRG has dependencies on debt financing.
NRG has a Debt to Equity ratio of 4.29. This is amonst the worse of the industry: NRG underperforms 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.38
WACC7.7%
2.3 Liquidity
NRG has a Current Ratio of 0.93. This is a bad value and indicates that NRG is not financially healthy enough and could expect problems in meeting its short term obligations.
NRG has a Current ratio of 0.93. This is comparable to the rest of the industry: NRG outperforms 53.19% of its industry peers.
A Quick Ratio of 0.88 indicates that NRG may have some problems paying its short term obligations.
The Quick ratio of NRG (0.88) is better than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.60%.
The Earnings Per Share has been growing by 22.12% on average over the past years. This is a very strong growth
NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 23.42% on average per year.
EPS 1Y (TTM)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
3.2 Future
NRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y-13.5%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
EPS Next 5Y7.32%
Revenue Next Year-2.15%
Revenue Next 2Y3.7%
Revenue Next 3Y3.63%
Revenue Next 5Y3.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.37, the valuation of NRG can be described as rather expensive.
68.09% of the companies in the same industry are cheaper than NRG, based on the Price/Earnings ratio.
NRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 18.66, which indicates a rather expensive current valuation of NRG.
Based on the Price/Forward Earnings ratio, NRG is valued a bit more expensive than 61.70% of the companies in the same industry.
NRG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued more expensive than 82.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued a bit cheaper than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.07 | ||
| EV/EBITDA | 26.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, NRG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, NRG's dividend is way lower than its industry peers. On top of this 80.85% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.05, NRG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of NRG grows each year by 75.36%, which is quite nice.
NRG has paid a dividend for at least 10 years, which is a reliable track record.
As NRG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)75.36%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
89.67% of the earnings are spent on dividend by NRG. This is not a sustainable payout ratio.
The dividend of NRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.67%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
166.28
-1.02 (-0.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-4.69%
Ins Owners0.61%
Ins Owner Change-0.68%
Market Cap32.16B
Analysts78.67
Price Target178.03 (7.07%)
Short Float %2.85%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP89.67%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.2%
Min EPS beat(2)6.61%
Max EPS beat(2)77.8%
EPS beat(4)3
Avg EPS beat(4)23.74%
Min EPS beat(4)-5.85%
Max EPS beat(4)77.8%
EPS beat(8)5
Avg EPS beat(8)44.55%
EPS beat(12)5
Avg EPS beat(12)-54.39%
EPS beat(16)8
Avg EPS beat(16)-39.4%
Revenue beat(2)2
Avg Revenue beat(2)4.33%
Min Revenue beat(2)0.06%
Max Revenue beat(2)8.6%
Revenue beat(4)2
Avg Revenue beat(4)-6.53%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)8.6%
Revenue beat(8)3
Avg Revenue beat(8)-9.18%
Revenue beat(12)6
Avg Revenue beat(12)15.11%
Revenue beat(16)10
Avg Revenue beat(16)25.86%
PT rev (1m)0.58%
PT rev (3m)9.06%
EPS NQ rev (1m)2.9%
EPS NQ rev (3m)-14.1%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.25%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 18.66 | ||
| P/S | 1.1 | ||
| P/FCF | 23.07 | ||
| P/OCF | 14.05 | ||
| P/B | 14.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.5 |
EPS(TTM)7.78
EY4.68%
EPS(NY)8.91
Fwd EY5.36%
FCF(TTM)7.21
FCFY4.33%
OCF(TTM)11.83
OCFY7.12%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROCE | 3.76% | ||
| ROIC | 2.92% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 5.88% | ||
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% | ||
| FCFM | 4.75% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)10.16%
ROIC(5y)11.32%
ROICexc(3y)10.6%
ROICexc(5y)12.26%
ROICexgc(3y)20.56%
ROICexgc(5y)20.12%
ROCE(3y)13.08%
ROCE(5y)14.57%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y16.16%
ROICexc growth 3Y-16.33%
ROICexc growth 5Y1.76%
OM growth 3Y-18.92%
OM growth 5Y-11.2%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-4.97%
GM growth 5Y-4.2%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 85.65% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.3% | ||
| Profit Quality | 306.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.27 |
F-Score5
WACC7.7%
ROIC/WACC0.38
Cap/Depr(3y)43.04%
Cap/Depr(5y)39.77%
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
EPS Next Y-13.5%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
Revenue Next Year-2.15%
Revenue Next 2Y3.7%
Revenue Next 3Y3.63%
Revenue Next 5Y3.62%
EBIT growth 1Y-75.89%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
EBIT Next 5Y18.72%
FCF growth 1Y131.7%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y159.35%
OCF growth 3Y67.24%
OCF growth 5Y11.07%