NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
170.36 USD
+6.55 (+4%)
170.36 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NRG. NRG was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and the financial health of NRG get a neutral evaluation. Nothing too spectacular is happening here. 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.
NRG had positive earnings in 4 of the past 5 years.
Of the past 5 years NRG 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.89%, NRG is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
NRG's Return On Equity of 19.89% is amongst the best of the industry. NRG outperforms 91.49% of its industry peers.
With a Return On Invested Capital value of 2.92%, NRG is not doing good in the industry: 82.98% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for NRG is significantly above the industry average of 4.90%.
The 3 year average ROIC (10.16%) for NRG is well above the current ROIC(2.92%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 1.55%. This is amonst the worse of the industry: NRG underperforms 91.49% of its industry peers.
In the last couple of years the Profit Margin of NRG has declined.
NRG has a worse Operating Margin (1.96%) than 91.49% 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 78.72% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still creating some value.
NRG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NRG has less shares outstanding
Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.29 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
NRG has a Altman-Z score of 2.29. This is amongst the best in the industry. NRG outperforms 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 has a Debt to FCF ratio of 7.85. This is amongst the best in 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 worse Debt to Equity ratio (4.29) than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.38
WACC7.64%
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 of 0.93. This is comparable to the rest of the industry: NRG outperforms 53.19% of its industry peers.
NRG has a Quick 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.
Looking at the Quick ratio, with a value of 0.88, NRG is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
| 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%.
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 1.82%.
The Revenue has been growing by 23.42% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 7.32% on average over the next years.
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-13.27%
EPS Next 2Y-0.31%
EPS Next 3Y5.59%
EPS Next 5Y7.32%
Revenue Next Year-2.15%
Revenue Next 2Y3.7%
Revenue Next 3Y3.63%
Revenue Next 5Y3.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.90, 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 similar valuation than the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 18.84, NRG is valued on the expensive side.
NRG's Price/Forward Earnings ratio is in line with the industry average.
NRG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued more expensive than 85.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.64 | ||
| EV/EBITDA | 26.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-0.31%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, NRG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.23, 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 2.31, NRG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
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-0.31%
EPS Next 3Y5.59%
170.36
+6.55 (+4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-0.43%
Ins Owners0.61%
Ins Owner Change-0.7%
Market Cap32.95B
Revenue(TTM)29.37B
Net Income(TTM)455.00M
Analysts78.67
Price Target178.03 (4.5%)
Short Float %2.47%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)0.13%
PT rev (3m)4.77%
EPS NQ rev (1m)2.9%
EPS NQ rev (3m)-7.32%
EPS NY rev (1m)0.27%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.22%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.84 | ||
| P/S | 1.12 | ||
| P/FCF | 23.64 | ||
| P/OCF | 14.4 | ||
| P/B | 14.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.99 |
EPS(TTM)7.78
EY4.57%
EPS(NY)9.04
Fwd EY5.31%
FCF(TTM)7.21
FCFY4.23%
OCF(TTM)11.83
OCFY6.95%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.99
Graham Number45.5
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%
ROICexgc growth 3Y-2%
ROICexgc 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 | 2.29 |
F-Score5
WACC7.64%
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-13.27%
EPS Next 2Y-0.31%
EPS Next 3Y5.59%
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%
NRG ENERGY INC / NRG FAQ
What is the ChartMill fundamental rating of NRG ENERGY INC (NRG) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NRG.
What is the valuation status for NRG stock?
ChartMill assigns a valuation rating of 2 / 10 to NRG ENERGY INC (NRG). This can be considered as Overvalued.
Can you provide the profitability details for NRG ENERGY INC?
NRG ENERGY INC (NRG) has a profitability rating of 4 / 10.
What is the valuation of NRG ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NRG ENERGY INC (NRG) is 21.9 and the Price/Book (PB) ratio is 14.4.
Can you provide the expected EPS growth for NRG stock?
The Earnings per Share (EPS) of NRG ENERGY INC (NRG) is expected to decline by -13.27% in the next year.