NRG ENERGY INC (NRG) Stock Fundamental Analysis
NYSE:NRG - New York Stock Exchange, Inc. - US6293775085 - Common Stock - Currency: USD
NRG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. NRG has an average financial health and profitability rating. NRG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NRG had positive earnings in the past year.
In the past year NRG had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.19%, NRG belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
The Return On Equity of NRG (46.71%) is better than 97.83% of its industry peers.
NRG's Return On Invested Capital of 12.61% is amongst the best of the industry. NRG outperforms 95.65% 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
The Profit Margin of NRG (4.43%) is worse than 71.74% of its industry peers.
NRG's Profit Margin has declined in the last couple of years.
The Operating Margin of NRG (8.69%) is worse than 73.91% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
NRG has a Gross Margin of 21.37%. This is in the lower half of the industry: NRG underperforms 63.04% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| 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
NRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NRG has less shares outstanding
The number of shares outstanding for NRG has been reduced compared to 5 years ago.
Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 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 2.54. This is amongst the best in the industry. NRG outperforms 93.48% of its industry peers.
The Debt to FCF ratio of NRG is 4.75, which is a neutral value as it means it would take NRG, 4.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.75, NRG belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
A Debt/Equity ratio of 3.53 is on the high side and indicates that NRG has dependencies on debt financing.
NRG has a Debt to Equity ratio of 3.53. This is amonst the worse of the industry: NRG underperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.59
WACC7.95%
2.3 Liquidity
NRG has a Current Ratio of 1.06. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NRG (1.06) is better than 73.91% of its industry peers.
A Quick Ratio of 1.02 indicates that NRG should not have too much problems paying its short term obligations.
NRG's Quick ratio of 1.02 is fine compared to the rest of the industry. NRG outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.48% over the past year.
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.
The Revenue has been growing slightly by 2.65% 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)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
NRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.50% yearly.
The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y-16.78%
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
EPS Next 5Y3.5%
Revenue Next Year2.23%
Revenue Next 2Y2.24%
Revenue Next 3Y2.23%
Revenue Next 5Y2.94%
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
Based on the Price/Earnings ratio of 16.42, the valuation of NRG can be described as correct.
Based on the Price/Earnings ratio, NRG is valued a bit cheaper than 67.39% of the companies in the same industry.
When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (26.03), we can say NRG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.63, NRG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.94. NRG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NRG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 93.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 11.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, NRG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, NRG's dividend is way lower than its industry peers. On top of this 80.43% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.09, NRG pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of NRG grows each year by 75.36%, which is quite nice.
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
NRG pays out 31.46% of its income as dividend. This is a sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.46%
EPS Next 2Y-4.24%
EPS Next 3Y0.36%
155.47
-4.21 (-2.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.37%
Inst Owner Change-0.82%
Ins Owners0.68%
Ins Owner Change-0.92%
Market Cap31.66B
Analysts78.75
Price Target124.63 (-19.84%)
Short Float %3.65%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)2.21%
PT rev (3m)10.47%
EPS NQ rev (1m)-12.35%
EPS NQ rev (3m)-7.77%
EPS NY rev (1m)1.02%
EPS NY rev (3m)3.99%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)-6.39%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 18.63 | ||
| P/S | 1.08 | ||
| P/FCF | 13.92 | ||
| P/OCF | 10.94 | ||
| P/B | 11.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)9.47
EY6.09%
EPS(NY)8.35
Fwd EY5.37%
FCF(TTM)11.17
FCFY7.18%
OCF(TTM)14.21
OCFY9.14%
SpS143.79
BVpS13.63
TBVpS-24.97
PEG (NY)N/A
PEG (5Y)0.74
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 | 2.54 |
F-Score7
WACC7.95%
ROIC/WACC1.59
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 5Y3.5%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%15.56%
Revenue Next Year2.23%
Revenue Next 2Y2.24%
Revenue Next 3Y2.23%
Revenue Next 5Y2.94%
EBIT growth 1Y68.83%
EBIT growth 3Y-15.12%
EBIT growth 5Y11.72%
EBIT Next Year69.53%
EBIT Next 3Y22.17%
EBIT Next 5Y14.73%
FCF growth 1Y167.62%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y199.31%
OCF growth 3Y67.24%
OCF growth 5Y11.07%