NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
163 USD
-6.36 (-3.76%)
163.5 USD
+0.5 (+0.31%)
NRG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. NRG has an average financial health and profitability rating. 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.
In the past year NRG had a positive cash flow from operations.
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
With an excellent Return On Assets value of 5.73%, NRG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of NRG (69.75%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.56%, NRG belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NRG is significantly above the industry average of 4.95%.
The last Return On Invested Capital (11.56%) for NRG is above the 3 year average (10.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROIC | 11.56% |
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
Looking at the Profit Margin, with a value of 4.61%, NRG is doing worse than 85.42% of the companies in the same industry.
NRG's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.13%, NRG is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NRG has declined.
NRG has a worse Gross Margin (21.15%) than 72.92% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | 4.61% | ||
| GM | 21.15% |
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.
Compared to 1 year ago, NRG has less shares outstanding
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
NRG has an Altman-Z score of 2.56. 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 2.56, NRG belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
NRG has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as NRG would need 6.99 years to pay back of all of its debts.
NRG has a Debt to FCF ratio of 6.99. This is amongst the best in the industry. NRG outperforms 85.42% of its industry peers.
NRG has a Debt/Equity ratio of 5.66. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NRG (5.66) is worse than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.5
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NRG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, NRG is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that NRG may have some problems paying its short term obligations.
The Quick ratio of NRG (0.99) is better than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.10%.
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 5.91%.
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)-10.1%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%44.74%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
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 9.67% yearly.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-11.47%
EPS Next 2Y0.97%
EPS Next 3Y5.46%
EPS Next 5Y9.67%
Revenue Next Year-2.44%
Revenue Next 2Y6.46%
Revenue Next 3Y5.83%
Revenue Next 5Y4.44%
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 18.89, the valuation of NRG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NRG.
When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (26.49), we can say NRG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.57, NRG is valued on the expensive side.
NRG's Price/Forward Earnings ratio is in line with the industry average.
NRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.3 | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y0.97%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.04%.
With a Dividend Yield of 1.04, NRG pays less dividend than the industry average, which is at 3.42. 81.25% 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 | 1.04% |
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
29.77% of the earnings are spent on dividend by NRG. This is a low number and sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.77%
EPS Next 2Y0.97%
EPS Next 3Y5.46%
163
-6.36 (-3.76%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.96%
Inst Owner Change-4.03%
Ins Owners0.61%
Ins Owner Change0.04%
Market Cap31.24B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.78
Price Target190.49 (16.87%)
Short Float %2.43%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP29.77%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.17%
Min EPS beat(2)6.61%
Max EPS beat(2)29.74%
EPS beat(4)4
Avg EPS beat(4)32.63%
Min EPS beat(4)6.61%
Max EPS beat(4)77.8%
EPS beat(8)6
Avg EPS beat(8)56.44%
EPS beat(12)6
Avg EPS beat(12)-45.25%
EPS beat(16)8
Avg EPS beat(16)-49.41%
Revenue beat(2)2
Avg Revenue beat(2)0.32%
Min Revenue beat(2)0.06%
Max Revenue beat(2)0.58%
Revenue beat(4)3
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-11%
Max Revenue beat(4)8.6%
Revenue beat(8)4
Avg Revenue beat(8)-5.59%
Revenue beat(12)6
Avg Revenue beat(12)14.6%
Revenue beat(16)10
Avg Revenue beat(16)22.86%
PT rev (1m)4.93%
PT rev (3m)7.15%
EPS NQ rev (1m)-20.28%
EPS NQ rev (3m)-31.18%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)-1.84%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 17.57 | ||
| P/S | 1.05 | ||
| P/FCF | 18.3 | ||
| P/OCF | 11.39 | ||
| P/B | 15.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.33 |
EPS(TTM)8.63
EY5.29%
EPS(NY)9.28
Fwd EY5.69%
FCF(TTM)8.91
FCFY5.46%
OCF(TTM)14.31
OCFY8.78%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.85
Graham Number44.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROCE | 14.89% | ||
| ROIC | 11.56% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 23.27% | ||
| OM | 8.13% | ||
| PM (TTM) | 4.61% | ||
| GM | 21.15% | ||
| FCFM | 5.73% |
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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 101.37% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.69% | ||
| Profit Quality | 124.24% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.56 |
F-Score7
WACC7.69%
ROIC/WACC1.5
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)-10.1%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%44.74%
EPS Next Y-11.47%
EPS Next 2Y0.97%
EPS Next 3Y5.46%
EPS Next 5Y9.67%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
Revenue Next Year-2.44%
Revenue Next 2Y6.46%
Revenue Next 3Y5.83%
Revenue Next 5Y4.44%
EBIT growth 1Y205.17%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year75.41%
EBIT Next 3Y33.23%
EBIT Next 5Y24.08%
FCF growth 1Y169.11%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y247.42%
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 5 / 10 to NRG.
What is the valuation status for NRG stock?
ChartMill assigns a valuation rating of 4 / 10 to NRG ENERGY INC (NRG). This can be considered as Fairly Valued.
Can you provide the profitability details for NRG ENERGY INC?
NRG ENERGY INC (NRG) has a profitability rating of 5 / 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 18.89 and the Price/Book (PB) ratio is 15.86.
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 -11.47% in the next year.