NRG ENERGY INC (NRG) Stock Fundamental Analysis
NYSE:NRG - New York Stock Exchange, Inc. - US6293775085 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NRG. NRG was compared to 47 industry peers in the Electric Utilities industry. NRG has only an average score on both its financial health and profitability. NRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NRG was profitable.
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.
1.2 Ratios
The Return On Assets of NRG (5.19%) is better than 85.11% of its industry peers.
NRG's Return On Equity of 46.71% is amongst the best of the industry. NRG outperforms 97.87% of its industry peers.
NRG's Return On Invested Capital of 12.61% is amongst the best of the industry. NRG outperforms 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 46.71% | ||
| ROIC | 12.61% |
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
NRG's Profit Margin of 4.43% is on the low side compared to the rest of the industry. NRG is outperformed by 87.23% of its industry peers.
In the last couple of years the Profit Margin of NRG has declined.
The Operating Margin of NRG (8.69%) is worse than 89.36% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
NRG's Gross Margin of 21.37% is on the low side compared to the rest of the industry. NRG is outperformed by 72.34% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 4.43% | ||
| GM | 21.37% |
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) 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.
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
NRG has an Altman-Z score of 2.44. This is not the best score and indicates that NRG is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.44, NRG belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
NRG has a debt to FCF ratio of 4.75. This is a neutral value as NRG would need 4.75 years to pay back of all of its debts.
NRG has a better Debt to FCF ratio (4.75) than 89.36% of its industry peers.
NRG has a Debt/Equity ratio of 3.53. This is a high value indicating a heavy dependency on external financing.
NRG has a Debt to Equity ratio of 3.53. This is amonst the worse of the industry: NRG underperforms 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.6
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.06 indicates that NRG should not have too much problems paying its short term obligations.
The Current ratio of NRG (1.06) is better than 65.96% of its industry peers.
NRG has a Quick Ratio of 1.02. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.02, NRG is doing good in the industry, outperforming 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
NRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
Measured over the past years, NRG shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.12% on average per year.
NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.65%.
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)35.48%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%16.02%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%15.56%
3.2 Future
The Earnings Per Share is expected to grow by 1.49% on average over the next years.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y-16.78%
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
EPS Next 5Y1.49%
Revenue Next Year2.54%
Revenue Next 2Y2.71%
Revenue Next 3Y2.75%
Revenue Next 5Y2.04%
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 15.80 indicates a correct valuation of NRG.
NRG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.55, NRG is valued a bit cheaper.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 17.93.
Based on the Price/Forward Earnings ratio, NRG is valued a bit more expensive than 61.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, NRG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 17.93 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | 10.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.13%.
With a Dividend Yield of 1.13, NRG pays less dividend than the industry average, which is at 3.54. 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 2.39, NRG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
31.46% of the earnings are spent on dividend by NRG. This is a low number and sustainable payout ratio.
The dividend of NRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.46%
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
NYSE:NRG (6/12/2025, 9:35:44 AM)
149.62
+0.55 (+0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.37%
Inst Owner Change-0.95%
Ins Owners0.68%
Ins Owner Change-1.99%
Market Cap29.25B
Analysts77.14
Price Target163.23 (9.1%)
Short Float %3.18%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP31.46%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.09%
Min EPS beat(2)16.39%
Max EPS beat(2)77.8%
EPS beat(4)3
Avg EPS beat(4)51.01%
Min EPS beat(4)-5.85%
Max EPS beat(4)115.68%
EPS beat(8)4
Avg EPS beat(8)37.49%
EPS beat(12)5
Avg EPS beat(12)-35.85%
EPS beat(16)8
Avg EPS beat(16)-26.28%
Revenue beat(2)1
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-11%
Max Revenue beat(2)8.6%
Revenue beat(4)1
Avg Revenue beat(4)-11.73%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)8.6%
Revenue beat(8)2
Avg Revenue beat(8)-11.52%
Revenue beat(12)6
Avg Revenue beat(12)16.62%
Revenue beat(16)10
Avg Revenue beat(16)30.25%
PT rev (1m)30.97%
PT rev (3m)33.93%
EPS NQ rev (1m)-21.8%
EPS NQ rev (3m)-13.22%
EPS NY rev (1m)1.02%
EPS NY rev (3m)3.99%
Revenue NQ rev (1m)8%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 17.93 | ||
| P/S | 1 | ||
| P/FCF | 12.86 | ||
| P/OCF | 10.11 | ||
| P/B | 10.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.79 |
EPS(TTM)9.47
EY6.33%
EPS(NY)8.35
Fwd EY5.58%
FCF(TTM)11.63
FCFY7.77%
OCF(TTM)14.8
OCFY9.89%
SpS149.79
BVpS14.2
TBVpS-26.01
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 46.71% | ||
| ROCE | 16.23% | ||
| ROIC | 12.61% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 27.72% | ||
| OM | 8.69% | ||
| PM (TTM) | 4.43% | ||
| GM | 21.37% | ||
| FCFM | 7.76% |
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-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 56.78% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 175.33% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.44 |
F-Score7
WACC7.87%
ROIC/WACC1.6
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)35.48%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%16.02%
EPS Next Y-16.78%
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
EPS Next 5Y1.49%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%15.56%
Revenue Next Year2.54%
Revenue Next 2Y2.71%
Revenue Next 3Y2.75%
Revenue Next 5Y2.04%
EBIT growth 1Y68.83%
EBIT growth 3Y-15.12%
EBIT growth 5Y11.72%
EBIT Next Year72.34%
EBIT Next 3Y27.71%
EBIT Next 5Y12.65%
FCF growth 1Y167.62%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y199.31%
OCF growth 3Y67.24%
OCF growth 5Y11.07%