NRG ENERGY INC (NRG) Stock Fundamental Analysis
NYSE:NRG - US6293775085 - Common Stock
145.09 USD
-0.8 (-0.55%)
145.09 USD
0 (0%)
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. The financial health of NRG is average, but there are quite some concerns on its profitability. NRG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NRG had positive earnings in the past year.
NRG had a positive operating cash flow in the past year.
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's Return On Assets of 1.89% is on the low side compared to the rest of the industry. NRG is outperformed by 85.11% of its industry peers.
NRG has a better Return On Equity (19.89%) than 89.36% of its industry peers.
NRG's Return On Invested Capital of 5.90% is fine compared to the rest of the industry. NRG outperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROIC | 5.9% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.55%, NRG is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
NRG's Profit Margin has declined in the last couple of years.
The Operating Margin of NRG (3.96%) is worse than 89.36% of its industry peers.
NRG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.25%, NRG is doing worse than 76.60% of the companies in the same industry.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 17.25% |
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NRG is destroying value.
Compared to 1 year ago, NRG has less shares outstanding
Compared to 5 years ago, NRG has less shares outstanding
NRG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.24 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.24, NRG belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
The Debt to FCF ratio of NRG is 7.85, which is on the high side as it means it would take NRG, 7.85 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NRG (7.85) is better than 85.11% of its industry peers.
NRG has a Debt/Equity ratio of 4.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.29, NRG is doing worse than 95.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.77
WACC7.68%
2.3 Liquidity
A Current Ratio of 0.93 indicates that NRG may have some problems paying its short term obligations.
NRG has a Current ratio (0.93) which is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that NRG may have some problems paying its short term obligations.
NRG's Quick ratio of 0.88 is fine compared to the rest of the industry. NRG outperforms 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for NRG have decreased strongly by -14.60% in the last year.
NRG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.12% yearly.
The Revenue has been growing slightly by 1.82% in the past year.
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.
Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
EPS Next Y-13.62%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
EPS Next 5Y7.32%
Revenue Next Year-2.29%
Revenue Next 2Y3.62%
Revenue Next 3Y3.44%
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.
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
A Price/Earnings ratio of 18.65 indicates a rather expensive valuation of NRG.
Compared to the rest of the industry, the Price/Earnings ratio of NRG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.24, NRG is valued a bit cheaper.
NRG is valuated correctly with a Price/Forward Earnings ratio of 16.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, NRG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NRG is more expensive than 80.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 17.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, 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!
Compared to an average S&P500 Dividend Yield of 2.34, NRG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of NRG is nicely growing with an annual growth rate of 75.36%!
NRG has been paying a dividend for at least 10 years, so it has 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)75.36%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
NRG pays out 89.67% of its income as dividend. This is not a sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.67%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
145.09
-0.8 (-0.55%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change-4.71%
Ins Owners0.59%
Ins Owner Change-0.61%
Market Cap28.06B
Analysts76
Price Target176.99 (21.99%)
Short Float %3.11%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)4.16%
PT rev (3m)42.02%
EPS NQ rev (1m)3.67%
EPS NQ rev (3m)-15.4%
EPS NY rev (1m)1.62%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-5.22%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)-4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 16.59 | ||
| P/S | 0.96 | ||
| P/FCF | 20.13 | ||
| P/OCF | 12.26 | ||
| P/B | 12.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.59 |
EPS(TTM)7.78
EY5.36%
EPS(NY)8.75
Fwd EY6.03%
FCF(TTM)7.21
FCFY4.97%
OCF(TTM)11.83
OCFY8.16%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROCE | 7.6% | ||
| ROIC | 5.9% | ||
| ROICexc | 5.97% | ||
| ROICexgc | 11.89% | ||
| OM | 3.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 17.25% | ||
| FCFM | 4.75% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y1.18%
ROICexcg growth 5Y18.42%
ROICexc growth 3Y-13.6%
ROICexc growth 5Y3.73%
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 4.44 | ||
| Cap/Depr | 85.65% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.67% | ||
| Profit Quality | 306.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.24 |
F-Score5
WACC7.68%
ROIC/WACC0.77
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-13.62%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
Revenue Next Year-2.29%
Revenue Next 2Y3.62%
Revenue Next 3Y3.44%
Revenue Next 5Y3.62%
EBIT growth 1Y-51.24%
EBIT growth 3Y-15.12%
EBIT growth 5Y11.72%
EBIT Next Year76.06%
EBIT Next 3Y31.93%
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%