NRG ENERGY INC (NRG) Fundamental Analysis & Valuation

NYSE:NRG • US6293775085

Current stock price

174.445 USD
+4.2 (+2.47%)
Last:

This NRG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. NRG Profitability Analysis

1.1 Basic Checks

  • NRG had positive earnings in the past year.
  • NRG had a positive operating cash flow in the past year.
  • Of the past 5 years NRG 4 years were profitable.
  • Of the past 5 years NRG 4 years had a positive operating cash flow.
NRG Yearly Net Income VS EBIT VS OCF VS FCFNRG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

1.2 Ratios

  • NRG has a Return On Assets (2.74%) which is in line with its industry peers.
  • NRG has a better Return On Equity (47.41%) than 100.00% of its industry peers.
  • The Return On Invested Capital of NRG (8.39%) is better than 95.74% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NRG is above the industry average of 4.52%.
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROIC 8.39%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
NRG Yearly ROA, ROE, ROICNRG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400 600

1.3 Margins

  • NRG has a Profit Margin of 2.59%. This is amonst the worse of the industry: NRG underperforms 89.36% of its industry peers.
  • In the last couple of years the Profit Margin of NRG has declined.
  • The Operating Margin of NRG (7.50%) is worse than 87.23% of its industry peers.
  • In the last couple of years the Operating Margin of NRG has declined.
  • NRG has a Gross Margin of 20.55%. This is in the lower half of the industry: NRG underperforms 70.21% of its industry peers.
  • In the last couple of years the Gross Margin of NRG has declined.
Industry RankSector Rank
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
NRG Yearly Profit, Operating, Gross MarginsNRG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. NRG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NRG is creating some value.
  • Compared to 1 year ago, NRG has less shares outstanding
  • NRG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, NRG has a worse debt to assets ratio.
NRG Yearly Shares OutstandingNRG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
NRG Yearly Total Debt VS Total AssetsNRG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 2.41 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 2.41, NRG belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
  • The Debt to FCF ratio of NRG is 21.47, which is on the high side as it means it would take NRG, 21.47 years of fcf income to pay off all of its debts.
  • NRG's Debt to FCF ratio of 21.47 is amongst the best of the industry. NRG outperforms 85.11% of its industry peers.
  • NRG has a Debt/Equity ratio of 9.76. This is a high value indicating a heavy dependency on external financing.
  • NRG has a Debt to Equity ratio of 9.76. This is amonst the worse of the industry: NRG underperforms 93.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Altman-Z 2.41
ROIC/WACC1.14
WACC7.38%
NRG Yearly LT Debt VS Equity VS FCFNRG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • NRG has a Current Ratio of 1.64. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.64, NRG belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
  • NRG has a Quick Ratio of 1.58. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
  • NRG's Quick ratio of 1.58 is amongst the best of the industry. NRG outperforms 87.23% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.58
NRG Yearly Current Assets VS Current LiabilitesNRG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NRG Growth Analysis

3.1 Past

  • NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.55%.
  • Measured over the past years, NRG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.00% on average per year.
  • The Revenue has grown by 9.18% in the past year. This is quite good.
  • The Revenue has been growing by 27.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%

3.2 Future

  • NRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.88% yearly.
  • Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y11.75%
EPS Next 2Y16.67%
EPS Next 3Y16.34%
EPS Next 5Y14.88%
Revenue Next Year16.94%
Revenue Next 2Y9.92%
Revenue Next 3Y7.66%
Revenue Next 5Y5.83%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
NRG Yearly Revenue VS EstimatesNRG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
NRG Yearly EPS VS EstimatesNRG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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4

4. NRG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.43 indicates a rather expensive valuation of NRG.
  • The rest of the industry has a similar Price/Earnings ratio as NRG.
  • NRG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.18, the valuation of NRG can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.96, NRG is valued a bit cheaper.
Industry RankSector Rank
PE 21.43
Fwd PE 19.18
NRG Price Earnings VS Forward Price EarningsNRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NRG indicates a slightly more expensive valuation: NRG is more expensive than 72.34% of the companies listed in the same industry.
  • 82.98% of the companies in the same industry are more expensive than NRG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 48.37
EV/EBITDA 14.98
NRG Per share dataNRG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as NRG's earnings are expected to grow with 16.34% in the coming years.
PEG (NY)1.82
PEG (5Y)0.69
EPS Next 2Y16.67%
EPS Next 3Y16.34%

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5

5. NRG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.17%, NRG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.75, NRG's dividend is way lower than its industry peers. On top of this 82.98% of the companies listed in the same industry pay a better dividend than NRG!
  • Compared to the average S&P500 Dividend Yield of 1.82, NRG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.17%

5.2 History

  • The dividend of NRG is nicely growing with an annual growth rate of 12.04%!
  • 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)12.04%
Div Incr Years6
Div Non Decr Years8
NRG Yearly Dividends per shareNRG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 51.57% of the earnings are spent on dividend by NRG. This is a bit on the high side, but may be sustainable.
  • The dividend of NRG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.57%
EPS Next 2Y16.67%
EPS Next 3Y16.34%
NRG Yearly Income VS Free CF VS DividendNRG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B
NRG Dividend Payout.NRG Dividend Payout, showing the Payout Ratio.NRG Dividend Payout.PayoutRetained Earnings

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NRG Fundamentals: All Metrics, Ratios and Statistics

NRG ENERGY INC

NYSE:NRG (4/14/2026, 1:16:04 PM)

174.445

+4.2 (+2.47%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-24
Earnings (Next)05-06
Inst Owners85.93%
Inst Owner Change0.02%
Ins Owners0.28%
Ins Owner Change-1.07%
Market Cap37.05B
Revenue(TTM)30.71B
Net Income(TTM)797.00M
Analysts80.95
Price Target198.31 (13.68%)
Short Float %2.09%
Short Ratio1.54
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
Yearly Dividend2.11
Dividend Growth(5Y)12.04%
DP51.57%
Div Incr Years6
Div Non Decr Years8
Ex-Date02-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.14%
Min EPS beat(2)6.55%
Max EPS beat(2)29.74%
EPS beat(4)4
Avg EPS beat(4)30.17%
Min EPS beat(4)6.55%
Max EPS beat(4)77.8%
EPS beat(8)7
Avg EPS beat(8)61.45%
EPS beat(12)7
Avg EPS beat(12)-25.5%
EPS beat(16)9
Avg EPS beat(16)43.12%
Revenue beat(2)2
Avg Revenue beat(2)10.8%
Min Revenue beat(2)0.58%
Max Revenue beat(2)21.01%
Revenue beat(4)4
Avg Revenue beat(4)7.56%
Min Revenue beat(4)0.06%
Max Revenue beat(4)21.01%
Revenue beat(8)4
Avg Revenue beat(8)-3.63%
Revenue beat(12)6
Avg Revenue beat(12)3.71%
Revenue beat(16)10
Avg Revenue beat(16)17.92%
PT rev (1m)2.27%
PT rev (3m)2.49%
EPS NQ rev (1m)-4.34%
EPS NQ rev (3m)-18.16%
EPS NY rev (1m)0.6%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.98%
Revenue NY rev (1m)-2.82%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 21.43
Fwd PE 19.18
P/S 1.21
P/FCF 48.37
P/OCF 19.37
P/B 22.04
P/tB N/A
EV/EBITDA 14.98
EPS(TTM)8.14
EY4.67%
EPS(NY)9.1
Fwd EY5.21%
FCF(TTM)3.61
FCFY2.07%
OCF(TTM)9.01
OCFY5.16%
SpS144.61
BVpS7.92
TBVpS-26.58
PEG (NY)1.82
PEG (5Y)0.69
Graham Number38.07
Profitability
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROCE 10.9%
ROIC 8.39%
ROICexc 10.8%
ROICexgc 19.51%
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
FCFM 2.49%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
ROICexc(3y)10.47%
ROICexc(5y)12.28%
ROICexgc(3y)22.09%
ROICexgc(5y)21.48%
ROCE(3y)12.12%
ROCE(5y)14.91%
ROICexgc growth 3Y10.87%
ROICexgc growth 5Y10.72%
ROICexc growth 3Y-0.24%
ROICexc growth 5Y1.31%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
F-Score6
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Debt/EBITDA 5.13
Cap/Depr 128.01%
Cap/Sales 3.73%
Interest Coverage 4.02
Cash Conversion 59.82%
Profit Quality 96.11%
Current Ratio 1.64
Quick Ratio 1.58
Altman-Z 2.41
F-Score6
WACC7.38%
ROIC/WACC1.14
Cap/Depr(3y)71.25%
Cap/Depr(5y)57.14%
Cap/Sales(3y)2.5%
Cap/Sales(5y)1.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
EPS Next Y11.75%
EPS Next 2Y16.67%
EPS Next 3Y16.34%
EPS Next 5Y14.88%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%
Revenue Next Year16.94%
Revenue Next 2Y9.92%
Revenue Next 3Y7.66%
Revenue Next 5Y5.83%
EBIT growth 1Y30.94%
EBIT growth 3Y1.16%
EBIT growth 5Y14.03%
EBIT Next Year138.03%
EBIT Next 3Y39.92%
EBIT Next 5Y24.1%
FCF growth 1Y-58.23%
FCF growth 3YN/A
FCF growth 5Y-13.77%
OCF growth 1Y-17.04%
OCF growth 3Y74.5%
OCF growth 5Y0.81%

NRG ENERGY INC / NRG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NRG ENERGY INC (NRG) stock?

ChartMill assigns a fundamental rating of 5 / 10 to NRG.


What is the valuation status of NRG ENERGY INC (NRG) stock?

ChartMill assigns a valuation rating of 4 / 10 to NRG ENERGY INC (NRG). This can be considered as Fairly Valued.


What is the profitability of NRG stock?

NRG ENERGY INC (NRG) has a profitability rating of 4 / 10.


How financially healthy is NRG ENERGY INC?

The financial health rating of NRG ENERGY INC (NRG) is 6 / 10.


What is the earnings growth outlook for NRG ENERGY INC?

The Earnings per Share (EPS) of NRG ENERGY INC (NRG) is expected to grow by 11.75% in the next year.