NRG ENERGY INC (NRG)
US6293775085 - Common Stock
NRG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 45 industry peers in the Electric Utilities industry. NRG has a bad profitability rating. Also its financial health evaluation is rather negative. NRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NRG had negative earnings in the past year.
NRG had a negative operating cash flow in the past year.
Of the past 5 years NRG 4 years were profitable.
NRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NRG has a worse Return On Assets (-0.98%) than 82.22% of its industry peers.
NRG's Return On Equity of -8.81% is on the low side compared to the rest of the industry. NRG is outperformed by 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.98% | ||
| ROE | -8.81% | ||
| ROIC | N/A |
ROA(3y)4.21%
ROA(5y)10.3%
ROE(3y)27.95%
ROE(5y)76.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NRG has a worse Gross Margin (7.97%) than 84.44% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
NRG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 7.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-34.28%
GM growth 5Y-20.44%
2. Health
2.1 Basic Checks
NRG does not have a ROIC to compare to the WACC, probably because it is not profitable.
NRG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NRG has less shares outstanding
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
NRG has an Altman-Z score of 1.43. This is a bad value and indicates that NRG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NRG (1.43) is better than 86.67% of its industry peers.
A Debt/Equity ratio of 3.49 is on the high side and indicates that NRG has dependencies on debt financing.
NRG's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. NRG is outperformed by 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACCN/A
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.02 indicates that NRG should not have too much problems paying its short term obligations.
NRG has a Current ratio of 1.02. This is in the better half of the industry: NRG outperforms 62.22% of its industry peers.
A Quick Ratio of 0.96 indicates that NRG may have some problems paying its short term obligations.
NRG's Quick ratio of 0.96 is fine compared to the rest of the industry. NRG outperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -122.05%.
NRG shows a decrease in Revenue. In the last year, the revenue decreased by -8.62%.
Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 24.91% on average per year.
EPS 1Y (TTM)-122.05%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q145.39%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y46.9%
Revenue growth 5Y24.91%
Revenue growth Q2Q-13.34%
3.2 Future
NRG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 78.18% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
EPS Next Y609.99%
EPS Next 2Y174.39%
EPS Next 3Y101.52%
EPS Next 5Y78.18%
Revenue Next Year-0.45%
Revenue Next 2Y0.29%
Revenue Next 3Y1.56%
Revenue Next 5Y2.75%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NRG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 12.52, NRG is valued correctly.
NRG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NRG is cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NRG to the average of the S&P500 Index (21.49), we can say NRG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued expensively inside the industry as 91.11% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 98.65 |
4.3 Compensation for Growth
NRG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NRG's earnings are expected to grow with 101.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y174.39%
EPS Next 3Y101.52%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
NRG's Dividend Yield is slightly below the industry average, which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.41, NRG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of NRG grows each year by 69.83%, which is quite nice.
NRG has paid a dividend for at least 10 years, which is a reliable track record.
NRG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)69.83%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
NRG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
NRG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP-148.83%
EPS Next 2Y174.39%
EPS Next 3Y101.52%
NRG ENERGY INC
NYSE:NRG (4/26/2024, 7:06:51 PM)
After market: 72.81 0 (0%)72.81
-0.05 (-0.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.98% | ||
| ROE | -8.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 7.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-122.05%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y609.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y46.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y